Housing Market and Immigrant Concentration Areas in Barcelona City

Transcription

1 Housing Market and Immigrant Concentration Areas in Barcelona City By: GARCÍA-ALMIRALL, Pilar 1 & ARENDS M., Lenimar N. 2 Paper presented at the 25th European Network for Housing Research (ENHR) International Conference Workgroup: Minority Ethnic Groups and Housing Tarragona. June, Prof. Dr. Arch. Universidad Politécnica de Cataluña (UPC). Centro de Políticas de Suelo y Valoración (CPSV). Bcn, Spain. pilar.garcia-almirall@upc.edu 2 MSc. Arch. PhD Student: Urban Management UPC. Researcher: Centro de Políticas de Suelo y Valoración (CPSV). Barcelona, Spain. lenimar.arends@upc.edu

2 The present paper is part of the research developed at the Research Centre of Land Policy and Valuations (CPSV) of the Technic University of Catalonia (UPC), on Immigration, Housing and City, where different competitive projects have been developed (MEC, ; MICINN 2009 y 2011; MICINN, ). 3 Special thanks to Montserrat Moix, for her advice in the methodological development for this paper. 3

3 ABSTRACT Different authors have linked residential segregation as a factor that perpetuates inequality (MUSTERD 2003, FANSTEIN, 1992). CORTÉS (2000) says that the existing price system of land and housing has distributed unevenly residential possibilities. The situation gets more serious when it comes related to immigrants who manage to stay in spaces with characteristics below the social minimum. The hypothesis of this investigation is that immigrant population, concentrated in the city of Barcelona, is located primarily in those areas of lower quality housing. The concentration of immigrants matches areas with lower quality index and housing characteristics, as well as lower housing prices. Research conducted an analysis at the district level, building the Housing Quality Index (iqviv), and the Housing Characteristics Index (icviv), so it could be observed their relationship with the Immigrant Concentration Index (ICI) and the evolution of the Housing Value from , in the area of study. It has been found that the housing market is an important determinant of city socialspatial structure, through which it can be changed the city model to be achieved related with concentration of groups and social segregation. The residential strategy (in terms of location, tenure arrangements, diversity of uses) should guide the city towards sociospatial mix, coexistence, and social development of the population. Also it should have a greater impact on the residential market in order to avoid housing speculation and overvaluation, instead of taking advantage of the immigrant population needs, and therefore reducing their possibilities of housing access to. INTRODUCTION The immigrant population is mostly located in low average price rent homes, especially when it comes to the first house they occupy, where in most cases share an apartment or sublet a room (LEAL, 2007). In the study of residential trajectories of immigrants (FRIZZERA & GARCIA-ALMIRALL, 2008) it is presented the stages of the journey of a non- EU immigrant on the road to satisfaction with their housing situation: landing, arrival, settlement and stabilization. It was found that in the stabilization stage house purchase is another way to integration. In the current perspective, it has been shown that that residential history has often been a death trap for those families who acquired house at a time of high prices, so, in reference to immigrants, in some cases it was paid very expensive an apparent integration. This study aims to visualize the evolution of house prices in relation to the construction quality in the field of study, particularly in those areas with immigrant concentration. This study investigation was performed from an extensive database of sale appraisals of Barcelona Metropolitan Area ( ). For the analysis of immigrant concentration areas was used Immigrant Concentration Index (ICI) 2001 and 2007 developed in the

4 research project "Immigration and socio-residential space in the Metropolitan Region of Barcelona," project funded by the Ministry of Education, Culture and Sports of Spain (MEC). 4 The first database used are housing valuations conducted between 2004 and 2010 provided by various appraisers companies as IBERTASA, EUROVAL, CATSA, EUROTASA, thus counting with a sample between 2,000 and 12,000 valuations per year in the Barcelona Metropolitan Area, and between 2,000 and 5,000 appraisals per year in the area of Barcelona. Each sample has valuation information: housing value per square meter (Vm2), land value, total retail value of housing; Physical Characteristics Housing: area, year built, number of bathrooms, number of bedrooms, presence of elevators and heating; Housing Quality: quality of kitchen, bathrooms and woodwork. Also, specific location of each of these homes priced in different years, allowing a study of the housing market in Barcelona at different scales, from within the Metropolitan Area of Barcelona (MAB) to a micro scale to census tract level. The second database was drawn from Census 2001, the Municipal Padrón 2007 and INE. These allowed to know the location of the extra community population and immigrant concentration index (ICI) developed, which explains GARCÍA-ALMIRALL & FULLAONDO, et al. (2008: 732), "can identify the areas where a particular population group is overrepresented with respect to what happens in the rest of the city. There are two different types of areas of concentration: - Areas of over-representation: in which the percentage of extra community population in the area represents a value higher than the citywide average plus one standard deviation - Areas Acute over-representation: in which the percentage of extra community population in the area are worth more than the citywide average plus two standard deviations." With the different databases was conducted a general study on Housing Market and extra community Population Concentration in the metropolitan area of Barcelona, knowing well the general behavior of this area at the municipal level. Then we selected the Municipality of Barcelona for a more detailed analysis at the district level. 4 GARCÍA-ALMIRALL & FULLAONDO & FRIZZERA (2008)

5 STUDY CONTEXT: BARCELONA METROPOLITAN AREA As a first approach to the study area can be seen in Figure 1 that, in general, acute concentration of immigrants is maintained from 2001 to 2007 both in the Municipality of Barcelona and those around (Hospitalet de Llobregat, Cornellà, Santa Coloma de Gramenet and Badalona). On the other hand Municipalities Castelldefels, Sant Cugat del Vallès, and San Vincente Villadecans experience a decreased concentration, appreciating some diffusion to other municipalities as Sant Feliu de Llobregat, Esplugues de Llobregat and Montcada i Reixac wich have an increased concentration of immigrants from 2001 to Fig. 1. Municipalities with over-representation of non-eu 2001 y MAB. Source: Own preparation with data from GARCIA-ALMIRALL & FULLAONDO, et al. (2008) Looking at the bi-annual evolution maps (Fig. 2, 3), it is observed a price increase from 2004 to 2007, being 2007 the point with the higher prices, and the 2006 summit date in the sale and purchase dynamics (Fig 4), after which then begin falling prices, as a result of the crisis brought on Spain for the housing bubble. This decline in housing prices since 2007 occurs in a gradual manner, while the decline in the housing market of sale and purchase suffers a dramatic fall (Fig. 4). For this reason, it has been taken immigrant population concentration areas in 2007, as a basic sample for understanding how has been

6 the development housing of these specific areas in the municipality of Barcelona, about prices, characterization, quality and sale and purchase market. (%) Evolución Evolución Evolución Fig. 2. bi-annual average housing price evolution (m2) (%). Municipalities of MAB. Source: Own preparation based on valuations (%) Evolución Evolución Evolución Fig. 3. bi-annual average housing price evolution (m2) (%). Municipalities of MAB. Source: Own preparation based on valuations Fig. 4. Valuations made evolution based on Municipios AMB. Source: Own preparation based on valuations

7 STUDY AREA: CITY OF BARCELONA AND ITS DISTRICTS In Barcelona city, Immigrant Concentration Areas (ZCI), are also divided into Acute overrepresentation Areas (ZCI_A) and over-representation Areas (ZCI_B). It is important to make clear that all districts of Barcelona have presence of immigrant population. However, if it is lower than the city average it is not considered a representative concentration. We can see in Figure 5 that districts 4, 5 and 6 (Les Corts, Sarria and Grace respectively) are the only districts that do not have over-representation of immigrants, while highlighting the districts 1, 3 and 8 (Ciutat Vella, Sants-Montjuic and Nou Barris) with a high concentration of immigrants (CI) Then, is there any difference in the housing physical characteristics of districts without CI in regard to those containing ZCI? Is it lower the value of housing in the ZCI?, Is it lower the quality of housing in the ZCI? Are the districts with higher concentrations of immigrants the districts with the lowest housing prices? Fig. 5. Immigrant Concentration Areas (ZCI). Barcelona City Source: Own preparation based on data of GARCIA-ALMIRALL & FULLAONDO, et al. (2008)

8 The evolution of housing value in the ZCI should be equal to or less than the mean of the Municipality, assuming that price is one of the most important factors influencing the location of the immigrant population. However, Figure 6, changes in average prices of housing in the ZCI A and B show that the evolution of prices is more pronounced in those areas. There are ZCI (continuous line) with an evolution of housing values above the average of the municipality mean (dashed black line), in some ZCI this evolution even exceeds the average of the same district where they are located (dashed lines), highlighting Districts: 1-Ciutat Vella (red), 3-Sants-Montjuic (blue), 8-Nou Barris (pink) and 10-Sant Martí (orange). Fig. 6. Average housing price evolution (m2) based on Barcelona City Source: Own preparation based on valuations

9 These four districts (1, 3, 8 and 10) also show a large dynamic of buy- sell homes, which their percentage of homes valued stands out among the other districts from 2004 to Since 2007, there is a sharp drop in the buy- sell market and these districts with ZCI no longer have a dominant role in the dynamics of the housing market. Although this fall occurs in all districts, since 2007, they are the districts without over-representation of immigrants who highlight in the housing market dynamics (Figure 7). Fig. 7. Valuation made by district 2004 al Barcelona City. (%) Source: Own preparation based on valuations CHARACTERIZATION AND QUALITY OF HOUSING IN BARCELONA. Housing Quality Index (iqviv). Housing Characteristics Index (icviv) Generally the factors that identify the quality of housing, as kitchen quality, bathroom and woodwork (qcuina, qbany, qfust, respectively phrased in Catalan), exhibit the same behavior, both referring to the quality of housing in the Municipality in general (Fig. 8), as the quality of specific housing in areas of immigrant concentration (Fig. 9). So after checking the correlation of these factors, we proceeded to carried out a synthetic index of Housing Quality (iqviv) through a factor analysis with SPSS. The quality of housing in the city of Barcelona is mainly concentrated in level three (intermediate quality, in the range of 1-5, being 1 highest quality and 5 quality very low); and they are evenly distributed both in high quality and low quality; while in the ZCI, it is observed a change in the housing

10 quality, most is average housing quality. However, the homes of high quality (rank 1) practically disappear, increasing the homes that have a low quality as expected to occur in the ZCI. Calidad Carpintería (qfust) BCN Calidad Baño (qbany) BCN Calidad Cocina (qcuina) BCN Fig. 8. Housing Quality on Barcelona City Frequency analysis Source: Own preparation based on valuations Calidad Carpintería (qfust) ZCI_BCN Calidad Baño (qbany) ZCI_BCN Calidad Cocina (qcuina) ZCI_BCN Fig. 9. Housing Quality on ZCI of Barcelona City Frequency analysis. Source: Own preparation based on valuations Also, it was performed a general comparison of some of the housing characteristics such as the presence of elevators, heating, number of bedrooms, number of bathrooms, and more. Through which it was made an average characterization of homes in the Municipality, perceiving that there are changes and differences in relation to the average characteristics of the houses of the ZCI of the same municipality. When performing a cross graphic of housing value per m2, number of bathrooms and number of bedrooms of 2004, it was observed that most of the houses in the city of Barcelona are characterized by having 1 to 2 bathrooms with 1 to 4 bedrooms, in a range from 2,000 to 5,000 euros/m2; while specific homes in the ZCI are characterized by having mostly 1 bathroom with 2 or 3 bedrooms, in a range of eu/m2 (Figure 10). This behavior was observed similarly in the rest of the years.

11 Barcelona ZCI Barcelona Fig. 10. Housing Characterization. Bedroom-Bathroom-Price. Frequency analysis. Source: Own preparation based on valuations In relation to the presence or absence of elevators and heating, it is observed that there is a drastic change between the houses in the Municipality in general, with regard to houses located in the ZCI of the municipality. Where 57% of households in the municipality have elevator, while in the ZCI less than 20% of the houses have this service; and just over 48% of the houses in the municipality have heating, while from the ones located in the ZCI only 31% have heating (Figure 11). Elevator Elevator Heating Heating Barcelona ZCI Barcelona Fig. 11. Housing Characterization. Elevator Heating. Frequency analysis. Source: Own preparation based on valuations

12 Observing these changes in the characteristics of the houses in the municipality and those located in areas of immigrant concentration. We proceeded to perform a factor analysis in order to construct an Index that would synthesize the characteristics of housing and then be able to analyze and make comparisons between districts and in turn build a synthetic analysis of the evolution in time between the years under study (2004 to 2010). To construct the index Housing Characteristics "icviv" factorial analysis was performed, checking the correlation between different factors thus obtaining the synthetic factor consisting of: surface housing, presence/ absence of elevator, presence/absence of heating, number of bedrooms and number of bathrooms. The construction of these index (housing quality index "iqviv" and housing characteristics index "icviv") allowed analyze parallel the existing relationship between these and the evolution of its purchase/sale market value, approaching to why the immigrant population is concentrated in certain areas and, also, to understand a little more if the housing market influences this concentration or whether, on the contrary, the immigrant population is a factor in the fluctuation of stock buy/sell. We constructed an analysis model of the factors that influence on the housing value in the municipality of Barcelona, through a linear regression it was found that in addition to the physical characteristics of housing, quality of them, year of construction, the location with its value of impact, the ZCI are also a factor that comes within this model with a significance level of Thus showing that the immigrant concentration is also a factor that influences in the explanation of housing value and, also, these ZCI are influenced by the dynamic real estate market. (Fig. 12) Fig. 12. Linear regression model. Significant factors on housing Price (m2). Barcelona City Source: Own preparation based on valuations & ZCI 2007.

13 Besides, it was performed another linear regression thus building a model that allowed to understand the most important factors that influence the ZCI, finding as major elements of housing characteristics and their price per m2 (Fig. 13). It is then understood by a dispersion analysis (fig. 14) that most immigrant population is concentrated in units priced between and per m2, with a housing index characteristic, medium to low (+1 to -2). While in the municipality these factors vary between and per m2 and features index exceeds even the +4 Fig. 13. Linear regression model. Significant factors on ZCI. Barcelona City Source: Own preparation based on valuations & ZCI Fig. 14. Relation: Price Housing Characteristics ZCI Barcelona City Source: Own preparation based on valuations & ICI 2007.

14 CONCENTRATION OF IMMIGRANTS VS. QUALITY, CHARACTERISTICS AND PRICE OF HOUSING IN BARCELONA. The Immigrant Concentration Index (ICI) oscillated, in 2007, from a range of 0-75 within the City of Barcelona, this way we can see in Figure 15, the percentage representing the average of each district in relation to the maximum value of ICI of the Municipality, the district 4: "Les Corts", 5: "Sarria Sant Gervasi", and 6 "Grace" have a low percentage of immigrant concentration, being, as mentioned before, the only Barcelona districts that fail to have any kind of over-representation of the study population. In the municipality predominate districts with medium-low percentage (between 12% and 14%) which are the districts 2: "Eixample", 7: "Horta-Guinardó", 9: "Sant Andreu" and 10: "Sant Martí ". The Districts 3: "Sants-Montjuic" and 8: "Nou Barris" have a concentration percentage medium-high (between 15% and 20%). And the district 1: Ciutat Vella, is the one with the highest percentage with 36% concentration of immigrants. Fig. 15. Immigrant Concentration. Average of ICI by district. Barcelona City (%) Source: Own preparation based on data of GARCIA-ALMIRALL & FULLAONDO, et al. (2008)

15 Comparing the average housing quality index by districts (Fig. 16), we see that in general most of the districts range from an average quality with an evolution fairly standard within this range, with the exception of Ciutat Vella (dist1) whose quality increases between 2005 and 2006, and then drops sharply from the year 2007, being the district with the lowest iqviv. Instead, districts 4 and 5 (Les Corts, and Sarria) go to be among the lowest iqviv in 2005 and 2006 to an increase in their quality from the year 2007, having the highest levels of quality. Barcelona ZCI Barcelona Fig. 16. Housing Quality Index (iqviv). By districts. Barcelona & ZCI_Barcelona Source: Own preparation based on valuations & ZCI The mean rate of housing characteristics index (Fig. 17), groups Les Corts, Sarria and the Eixample with the highest values, the rest of the districts in a medium level, with the exception of Nou Barris and Ciutat Vella which have the lower values. This latter one again has the lowest average of all districts. When analyzing only the ZCI, it appears that the only district that stays at a medium and higher level is the Eixample, while the rest of the houses located in the ZCI are located below icviv midrange. Barcelona ZCI Barcelona Fig. 17. Housing Characteristics Index (icviv). By districts. Barcelona & ZCI_Barcelona Source: Own preparation based on valuations & ZCI 2007.

16 In Figure 18, it is the evolution of housing average value. It can easily perform a visual ranking of districts with more expensive and cheaper housing prices. Sarria district (D5) holds throughout the period analyzed the higher prices for housing, while the 8th district, Nou Barris, is observed as the district with the lowest housing prices. Particularly draws attention district 1, Ciutat Vella, which maintains an average midrange price, ranking above the 10th district, Sant Martí, and district 3, Sants-Montjuic. Both districts in previous analyzes showed characteristics and index housing quality higher than Ciutat Vella. In homes located specifically in the ZCI remains that Ciutat Vella is one of the districts with concentration of immigrants with higher housing prices surpassed only by the Eixample. This phenomenon expresses the duality of Ciutat Vella residential market, where coexists housing supply for affluent social sectors (professional international) along with the most disadvantaged social groups who found in the central location of Ciutat Vella proximity to their social networks host. Barcelona ZCI Barcelona Fig. 18. Evolution of housing average price (m2). By districts. Barcelona & ZCI_Barcelona Source: Own preparation based on valuations & ZCI Housing buying/selling market dynamics, in this case, is observed with changes in the number of valuations carried out in each district (Fig. 19). It was observed previously above as a percentage (Fig 7). It can be seen the sharp decline got by the housing market in 2007 as a result of the crisis caused by the Spanish housing bubble. At district level, Ciutat Vella, compared with districts with concentration of immigrants, is the district with the least number of valuations performed from 2004 to 2010, then highlight Sants-Montjuic, with an intermediate dynamics and, Sant Martí and Nou Barris with high dynamics. However, in the ZCI the housing market dynamics remains led by Nou Barris and Ciutat Vella.

17 Nº Tasaciones Nº Tasaciones Barcelona ZCI Barcelona Fig. 19. Evolution number of value (m2). By districts. Barcelona & ZCI_Barcelona Source: Own preparation based on valuations & ZCI CONCLUSION The research, corroborated from various points of view, with statistical and geographical analysis, that the immigrant population is concentrated mainly in homes that have a medium to low quality. Medium to small surfaces houses, with few toilets and few bedrooms, mostly with no elevator and no heating. These districts with overrepresentation of immigrants have a high housing market dynamic. On the contrary to what was thought in the beginning of the investigation, the district with the highest concentration of immigrants (District 1-Ciutat Vella), despite being the district of Barcelona with lower iqviv and icviv, it is NOT the district with the lowest price homes. Oddly the performance of the housing value shows this district with an average above average housing value of the municipality. When it is analyzed the price developments specifically in the areas of immigrant concentration (ZCI) per district, it appears that this is the second (2nd) district with the highest housing prices in ZCI, surpassed only by 2- Eixample district, contradicting the second part of the hypothesis. Poor quality housing, but with a high dynamic housing market in districts with immigrant concentration, make us to consider that it is possible that in certain areas or districts (as in the case of Ciutat Vella) can be a housing market speculation caused by the high influx of immigrants, taking advantage of the features that many immigrants seek located in areas where there are already countrymen from its same country of origin, or where there are stable social networks that can be of support in a country different from them. We can say that choosing residential location of immigrants is a complex process influenced by various factors such as social networks, origin, income, family composition, characteristics of the arrival city, workplace, among others (ARBACI, 2008; MUSTERD & KEMPEN, 2007). But it is also true that the housing characteristics, its quality, housing

18 market, directly affect in the potential location of this group, which becomes in strong factor in defining the socio-spatial structure of the city. The real estate market also can change the city model to be achieved in relation with the concentration of groups and social segregation. This is why it is vital that government offices responsible for urban development focus on designing good residential strategies (in terms of location, tenure arrangements, diversity of uses) in order to get cities capable of activating coexistence, the encounter, and sociospatial mixture. Therefore contribute positively in the social development of the population. Besides, have more control of the housing market in order to avoid speculation and housing overvaluation, taking advantage of immigrant population needs, reducing their housing access possibilities. REFERENCES ARBACI, S. (2008) (Re)Viewing ethnic residential segregation in Southern European cities: housing and urban regimes as mechanisms of marginalization. Housing Studies, 23(4): ARBACI, S. (2007) Ethnic Segregation, Housing Systems and Welfare regimes. European Journal of Housing Policy, 7(4). BAYONA, J. La segregación residencia de la población extranjera en Barcelona. Una segregación fragmentada? Scripta Nova, XI (235). Barcelona, Universitat de Barcelona. FANSTEIN, S. & GORDON & HARLOE (1992). Divided cities. Blackwell, Cambridge, USA. FIZZERA, A. & GARCÍA-ALMIRALL, P. (2008). La trayectoria residencial de la inmigración en Madrid y Barcelona. Un esquema teórico a partir del análisis cualitativo. Arquitectura Ciudad y Entorno (ACE), 8: FULLAONDO & GARCÍA-ALMIRALL (2007): Foreign immigration in Spain: Towards multiethnic metropolises. Paper, European Network Housing Research. Rotterdam. GARCÍA-ALMIRALL & FULLAONDO & FRIZZERA (2008). Inmigración y espacio socioresidencial en la Región Metropolitana de Barcelona. Ministerio de Vivienda, Madrid. Ciudad y Territorio, 158: LEAL, J. (2007). Cambios en la morfología social de las grandes ciudades españolas: apuntes para una investigación. Arquitectura Ciudad y Entorno (ACE), 3: LEAL, J. (2004). El Diferente Modelo Residencial De Los Paises Del Sur De Europa: El Mercado de Viviendas. La Familia y el Estado. Arxius, 10: MUSTERD, S. & KEMPEN, R. (2007). Trapped or on the springboard? Housing careers in large housing estates in European cities. Journal of Urban Affairs, 29(3): MUSTERD, R. et al.(1998). Multi-Ethnic Metropolis: Patterns and Policies. Dordrecht, Kluwer Academy Publishers. MUSTERD, R. y OSTENDORF, W. (1998) Urban Segregation and the Welfare State: Inequality and Exclusion in Western Cities. London and New York, Routledge. REBELO, E. (2010). A methodology to approach immigrants land use in metropolitan areas. Cities, 27: