And, perhaps unsurprisingly – given Spain's pre-eminence as a property market this past decade, Barcelona is popular with property investors, too. In fact, according to figures released by Ajuntamiento de Barcelona, almost all of the city's key districts enjoyed resale property price growth of 100 per cent or more between 2000 and 2005. Such increases, however, have left Barcelona with Spain's highest resale prices – a whooping 4,825 euros per square metre (source: Idealista). On top of this apparently prohibitive entry level, the market is now cooling – as it is across Spain. But no property market is uniformly strong or weak; rather, there are pockets of potential in even the markets that are, apparently, the most inflated.

So where do the experts tip as the best property investment pocket in Barcelona?
Although quick to point out that Barcelona is not a short-term bet, Alex Vaughan of Lucas Fox estate agency believes that Poblenou possesses longterm investment potential. "With the Spanish government attempting to turn Poblenou into an e-commerce hub, and major companies agreeing to move into the area, if you buy well you'll get good capital growth," predicts Vaughan.

The area certainly has plenty going for it. Substantially regenerated for the 1992 Olympics, boasting quality hotels, access to excellent beaches and a pleasant, village-like feel, Poblenou isn't lacking in charm – or, if Vaughan is right, investment appeal. However, one potential downside is that property in the area is no longer cheap. Vaughan notes that only those with budgets of 250,000 euros and upwards can hope to buy a onebedroom property in Poblenou, with renovated apartments and new-builds with communal facilities such as swimming pools most worthy of consideration but costing more. Vaughan advises that shortterm lets and/or a strategy of "sit on then sell" is best suited to the Poblenou, and indeed Barcelona as a whole, at present.

Of course, as with any property investment there are risks involved. In the case of Poblenou, the question is whether the government project will attract businesses without repelling potential residents. If not, you might end up with an apartment and a problem on your hands.

Related articles:
Why the Costa Brava?
Property options in Andalucia
The property buying process in Spain

Read our latest Spanish property bulletin

Search and browse properties for sale in Spain 

Article published 30 April 2008