The capital of Catalonia and Spain's second largest city is located on the north-eastern coast of the Iberian Peninsula.

What's so special about it?

Barcelona is renowned as one of Europe's most impressive cities . . . whether it is strolling down La Rambla, relaxing on the 4.2kms of beaches or marvelling at the Gaudi architecture. A number of the city's sites are Unesco World Heritage Sites and in 1999 it was awarded the Royal Gold Medal by the Royal Institute of British Architects . . . the only time the winner has been a city and not an architect.

Best kept secrets:

The city is becoming increasingly popular with the Irish community and according to the Barcelona Department of Statistics there are now 620 Irish citizens. Barcelona has several universities with campuses throughout the city. This, coupled with the influx of businesses and tourists, explains Barcelona's biggest selling point . . . rental return. In recent data on where rental demand was the highest during the summer of 2006, compiled by HolidayRentals. co. uk, Barcelona was number one with a 21% rise in demand while the number of properties available rose by 17%.

Who lives here?

Its most iconic inhabitants have been Antoni Gaudi, who used the city as his own canvas, and Salvador Dali. Nowadays, its most famous residents are Spanish royalty and several Barcelona FC players, most notably Ronaldinho.

What's the property market like?

"Owner occupation in Spain is still the highest in Europe and a Spaniard's number-one priority is to buy his own property, typically spending a higher percentage of income on his mortgage than his European counterparts, " says Marta Figueras Murphy, a Barcelona native who recently set up Luxus Properties to advise Irish buyers. Since the 1992 Olympic Games, the market has grown strongly and in the last two years price hikes of 25% to 30% have been seen, but it is more reasonable to expect 15%. Catalonia is more expensive but the region also accounts for nearly a quarter of Spanish GDP, making it the power house of Spain and one of the wealthiest areas.

How do you go about buying property ?

The online newspaper Barcelona Reporter has updated news on Barcelona property and often has articles translated from El Pais. You don't need to be a resident to buy property, you just have to have a national identity number that can be easily obtained with your passport. The Asociacion Empresarial de Gestion Inmobiliaria (AEGI) is a good source for finding agents, as is the new Association of International Property Professionals (AIPP). You will also need to hire an abogado (Spanish lawyer) who must be registered with the local law society and speak English and Spanish. You need a notary, who will draft and authenticate the deed at the local Land's Registry. The process takes about three months. For finance, Bank of Ireland has an association with the la Caixa group with 75% mortgages available on terms up to 30 years.

Where are the best places to buy?

Barcelona is split into 10 districts and the areas experiencing the greatest demand from foreign buyers are the Ciutat Vella and L'Eixample. Ciutat Vella takes in Barri Gotico, El Born and El Raval. The area is busy and has easy access to the beach.

L'Eixample is one of the newest districts, just north of Plaza Catalunya. Areas such as Barri Gotic, Gracia, La Ribera, Sants and Poble Sec are due for regeneration and would make better long-term investments.

What's the rental market like?

The yield for short-term lets is 5% per annum and demand is high. A quality twobed apartment will generate about 1,000 a week. For long-term rental the city has a healthy population of students and young professionals. The average rent for a room in the city centre is 400 a month or 1,500 for a quality apartment.

What type of property is available?

The market mainly consists of apartments. In the expensive areas along the Maresme coast in the north and west of the city, villas and townhouses are pricy even by local standards. In the city centre, apartments with loft conversions are increasingly popular. Barcelona has a higher proportion of protected housing than the rest of Catalonia and recently almost 20% of all houses completed were classified as 'protected' for architectural or historical value so it is worth verifing the status of any property you consider buying.

Average property prices?

The average price of a property is 617,000 . . . more expensive than Madrid and on a par with Paris. However, Figueras Murphy believes it is still possible to find city-centre apartments for less than 200,000 and she believes that new developments, such as those at Diagonal Mar and Raval, once complete, will be the most technologically advanced neighbourhoods in Spain.

Tax breaks between Ireland?

Ireland has double taxation agreement with Spain. Irish buyers must register with the Spanish Tax Agency and it is advisable to also make a Spanish will.

USEFUL CONTACTS >> Barcelona Reporter:

www. barcelonareporter. com >> El Pais Newspaper: www. elpais. com >> Asociacion Empresarial de Gestion Inmobiliaria: www. aegi. es >> Association of International Property Professional: 0044-207 409 7061; www. aip. org. uk >> ICEX (Spanish Institute for Foreign Trade): www. icex. es >> La Caixa: www. lacaixa. es >> Property Lawyers Abroad Network:

www. plani. net FAST FACTS Getting there: Ryanair "ies to Barcelona and nearby Girona. Aer Lingus operates from Cork and Dublin and Jet2 services Belfast Area: 100.4 km Population: 1,593,075 Currency: Euro Weather: Mediterranean, averaging from 10degreesC in winter to 25degreesC in summer Transport: Transport links are excellent with a very ef"cient Metro, tram and rail system. At night, taxis can be a nightmare. Bikes are the easiest form of transport; however bike theft is a problem so buy two locks Going out: Bars, cafes and clubs are clustered around Avenue Diagonal, while the Poble Espanyol and the Olympic Village are also popular. Must see spots are Gaudi's Park Guell and Sagrada Familia and Camp Nou . . . home to FC Barcelona Eating Out: ElBulli restaurant has been awarded 'Best Restaurant in the World' for two years running. In Barcelona they like to eat an array of tapas courses washed down with cava sparkling wine. The Barceloneta area of town is popular for "sh and paella and in the Travel Bar backpackers can get meals for as little as 1 Shopping: La Gauche Divine and El Corte Ingles are popular but label lovers head to El Born and bargain-hunters to the Les Encants "ea. . . market