Street Retail in Barcelona: How C1, C2 and C3 Licenses Shape Asset Value
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In Barcelona, investors traditionally assess commercial premises based on size, façade, location, and price per square meter. However, in the street retail segment, the decisive factor is often not the physical asset itself, but the existence of an active operating license — and its category within the municipal classification system.
Barcelona currently applies an updated classification (Group 2.3 — Restauración) for newly issued licenses, structured by type of activity. At the same time, previously granted licenses continue to operate under the market-familiar C1, C2, and C3 categories.
In central districts, a license can account for up to 40–50% of an asset’s investment value. The reason is clear: ongoing restrictions and moratoriums on issuing new horeca licenses. In certain zones, opening a bar or restaurant from scratch is no longer possible — the only option is to acquire a property with an existing operating license.
As a result, the valuation formula in Barcelona’s street retail market looks like this: license category + location + pedestrian traffic.
If a property lacks a license — or if the license does not match the intended business format — its liquidity decreases significantly, regardless of the quality of the premises.
Current Classification: C1, C2 and C3
In Spain, bar and restaurant activities are regulated under three main license categories. These determine technical requirements, acoustic impact levels, kitchen capacity, and operational format.
C1 → Category 2.3.1
Bar without a full kitchen
Permitted:
• Beverage service
• Cold and simple snacks
• No active kitchen with full thermal cooking
Key characteristics:
• No industrial smoke extraction system required
• Lower fire safety requirements
• Minimal technical risks
For investors:
• Low technical entry threshold
• No complex ventilation infrastructure
• Limited gastronomic format
Suitable for cafés and small bars, but with restricted turnover potential.
C2 → Categories 2.3.2.1 and 2.3.2.2
Bar with limited kitchen / Fast-food format
Allows preparation of simple dishes and use of kitchen equipment.
Requirements:
• Ventilation and smoke extraction system (depending on kitchen type)
• Compliance with fire safety regulations
• Sanitary compliance
For investors:
• Broader tenant pool
• Greater format flexibility
• Requires technical due diligence of engineering systems
C2 remains the most balanced option in terms of yield and manageable risk.
C3 → Categories 2.3.3 and 2.3.4
Full-service restaurant / Restaurant-bar
Permitted:
• Full professional kitchen
• Lunch and dinner service
• Extended hospitality format
Requirements:
• Professional kitchen installation
• Certified smoke extraction system
• Fire protection systems
• Technical project approval
This is the most capital-intensive and regulation-heavy format — but also the one with the highest turnover potential.
Why the License Is an Investment Asset
Under restrictive urban regulation, a license becomes an independent economic resource.
In several districts, the PEUAT urban plan limits the issuance of new hospitality licenses. This means that asset value is determined not only by physical characteristics, but also by the legal right to conduct a specific type of business.
Street retail in Barcelona is not just about square meters. It is the combination of:
• License category
• Zoning restrictions
• Stable pedestrian flow
Price per square meter is secondary.
The primary factor is the legal and sustainable ability to operate the premises.
Strategic Takeaway for Investors in 2026
In Barcelona’s street retail market, the key asset is not the premises — it is the license. Under current licensing restrictions, the activity category determines liquidity, stability, and yield potential.
• Format 2.3.1 (C1) is suitable for conservative entry strategies.
• Format 2.3.2 (C2) typically provides the optimal balance between yield and operational flexibility.
• Formats 2.3.3–2.3.4 (C3) offer maximum turnover potential, but with higher regulatory and technical complexity.
C3-licensed properties in central districts are structurally undersupplied. Restrictions on new permits create sustained demand from operators, making such assets not only potentially more profitable but also more liquid. In many cases, exit timelines are shorter compared to formats with limited operational capacity.
For investors, it is therefore essential to evaluate not only price per square meter, but also the legal status of the asset, district-level restrictions, technical compliance, and tenant profile. It is the combination of license and location that defines the true investment value of a commercial property.
At Estate Barcelona, we support the sourcing and due diligence of properties with active licenses, ensuring secure transaction structuring and full legal control throughout the acquisition process.
