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HOW THE 37TH AMERICA'S CUP WILL IMPACT ON RENTAL PRICES IN BARCELONA

After a long and competitive selection process, in March 2022 it was officially announced that Barcelona had won the opportunity to host one of the largest and most important sailing events in the world, the America's Cup 2024. This makes the Catalan capital the first venue to host two emblematic sporting events, along with the Olympic Games in 1992.

As is well known, the Olympic Games marked a before and after in the history of the city, completely transforming it: new neighborhoods such as the Olympic Village emerged, two kilometers of beach were created, infrastructures such as the Rounds were built, new terminals were erected at the airport and a new sports facilities park that has subsequently allowed to host other major events. There is no doubt that a new event of this magnitude will leave a mark on all sectors, including the real estate market.

The changes are already taking place. Following the example of the 1992 Olympic Games, when the coastline was transformed, Barcelona decided to give a new look to its seafront. To welcome the America's Cup, a port transformation plan has been launched that includes the construction of a new promenade, the creation of a new fish market, the demolition of the old cinemas and the construction of new accesses to the Olympic Village neighborhood and the beach, among others. 

But, apart from the construction projects, what changes are expected to take this great sailing event?

Although facilities will be built for the teams participating in the competition, as well as an event villa for the large audience that will attend, without a doubt, the event will worsen the shortage of rental housing in Barcelona. Unlike in 1992, Barcelona now already has the second highest population density in Europe after Paris, and now even more people are coming and looking for flats near the center and the port. The regatta will increase the demand for medium-term rentals, which will further reduce the supply of long-term rental housing on the market, at least until the end of 2024.  

In addition, the experts expect that the event will have a huge impact on prices. Looking at other editions, as was seen in Bermuda during the 35th edition of the America's Cup, rental prices in specific areas increased due to a higher demand than usual. There was evidence that some three-bedroom houses were able to get up to 6,500 euros a month or more during the America's Cup period, when they are normally rented for around 5,000 euros. The same effect could be observed in 2012, when the great regatta took place in San Francisco: especially the rental houses overlooking the bay could afford to increase their rents significantly. Likewise, the real estate sector in Barcelona will have to cope with the demand for temporary rentals by the people involved in the America's Cup, who will require apartments for up to two years. Experts predict that there will be an upward effect on rental prices in the areas where the competitions are held, but there will also be one-off temporary increases. 

Therefore, based on the past, it is expected that many homeowners in Barcelona will follow that example and increase their rental prices. Some even dare to say that not only rental prices will be affected by the America's Cup, but also the sales market will increase. If the migration of properties from the rental market to the sale market is holding back the price of properties for sale in Barcelona, at least for the time being, at some point the flow from renting to selling will stop, and foreign buyers will return to Barcelona in greater numbers, some of them after falling in love with the city during the Copa America. 

One thing is for sure: the America's Cup will have a significant impact on the housing market in Barcelona. Prices are expected to increase in the areas where the competitions will be held, which will lead to greater benefits for homeowners and the attraction of potential foreign buyers.