Barcelona's economy experienced a 3% increase in its Gross Domestic Product (GDP) during 2025, surpassing growth rates for both Catalonia and Spain. This economic expansion occurred alongside a significant rise in housing costs, with prices for both new and used homes climbing by almost 10%. The Municipal Data Office of Barcelona City Council released these findings, detailing the city's economic performance.

Strong Economic Performance

The city's 3% GDP growth in 2025 exceeded Catalonia's 2.7% and Spain's 2.8%, based on estimates from Idescat and INE, respectively. This marked a slight moderation from the 3.8% growth recorded between 2023 and 2024. The services sector primarily drove Barcelona's economic expansion, showing a 3.8% increase in the final quarter of 2025. This figure also outpaced the 3.5% growth seen across Catalonia and Spain in the same period.

Key sub-sectors within services, including commerce, hospitality, transport, information, and communications, collectively saw a 5% rise in the last three months of 2025. The industrial sector in Barcelona grew by 1% in 2025. This was lower than Catalonia's 2.5% and Spain's 2.3%. Construction in Barcelona increased by 6.9% in the final quarter, falling below Catalonia's 8.8% and Spain's 8.4%.

Household disposable income in Barcelona increased by 5.2% in 2025, matching the national average for Spain. This figure represents the money families have available after taxes and social security contributions, and after receiving benefits and pensions. This growth was nearly half the 9.2% increase observed between 2023 and 2024. Primary income, which includes salaries and rental earnings before taxes and benefits, rose by 6.1%, also below the 9% increase of the previous year.

Unemployment in Barcelona largely stabilised throughout 2025. Registered unemployment stood at 7.7% in December 2025, a marginal decrease from 7.8% in December 2024. This represented 63,355 unemployed individuals at the end of 2025, compared to 63,491 a year earlier. However, figures for the first quarter of 2026 showed a slight increase, with 64,569 registered unemployed in March, a 1.6% rise from December. The Labour Force Survey (EPA) indicated Barcelona's unemployment rate stabilised at 8.1% in the final quarter of 2025. This rate was lower than Catalonia's 8.2% and Spain's 9.9%, but higher than the 7.9% for Barcelona province.

Surging Housing Market Pressures

Barcelona's housing market experienced substantial price increases in 2025, impacting residents and potential buyers. Prices for both new and used homes rose by almost 10%. The average price for a new home reached €5,359 per square metre in the third quarter of 2025, a 9.6% increase from the same period in 2024. The average sale price for a new home during the summer months was €483,600, an increase of €85,000 per property compared to the third quarter of 2024. This 21% rise is partly due to larger average property sizes, at 86.5 square metres.

Used home prices also saw significant increases, reaching €4,871 per square metre in the third quarter of 2025. This marked a 9.6% jump from the third quarter of 2024, far exceeding the 2.4% inflation rate over the same period. The average price for a used home sold during the summer was €414,400, a 10.6% increase year-on-year. Total home sales in Barcelona reached 16,704 operations in 2025, the highest figure in three years and a 4.6% increase from the previous year. This growth was primarily driven by a 6.2% rise in used home transactions, while new home sales decreased by 7.4%.

Rental Market and Tourism Growth

The rental market in Barcelona also saw prices reach new highs. The average rent per square metre per month hit €17.04 in the fourth quarter of 2025, marking a 1.8% increase over the first quarter of 2024. This period coincided with the implementation of rent caps across the city, which is designated as a tense residential market area. The average monthly rent in Barcelona stood at €1,161 in the fourth quarter of 2025. This was €43 more than at the close of 2024, but slightly below the €1,193 recorded in the first quarter of that year. The city signed 30,789 new rental contracts for habitual residences in 2025, a 6.4% decrease from 2024. However, with fewer cancellations, the city added 534 net contracts compared to the previous year.

Barcelona's tourism sector continued its robust recovery. In March 2026, the number of tourists staying in hotels rose to 720,000, a 2.1% increase from March 2025. This represents a historical high, largely due to a 10.8% increase in domestic visitors, totalling 150,000. International visitors remained stable at 570,000. The first quarter of 2026 saw over two million travellers, a 6.5% increase from the same period in 2025, and 4.8 million overnight stays, up 5%. In 2025, non-EU tourists accounted for 51.2% of all hotel guests, the highest percentage ever recorded. The United States was the top source country for foreign visitors, with 1.2 million arrivals, a 6.8% increase from the previous year. The United Kingdom followed with 620,000 visitors, up 2.3%, while French visitor numbers slightly decreased.

These economic indicators show Barcelona's continued growth, particularly in its vital services and tourism sectors. However, the significant increases in both housing and rental prices present ongoing challenges for residents and city planners moving forward.

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Originally published by El Periódico Barcelona. Read original article.