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Mallorca property, News

Investing in Mallorca Property

For those with an eye on property investment, it is encouraging to see the latest figures from the Ministry for Development in Madrid, which record British buyers in the front line of current foreign property investment in Spain, including the Balearics. News is that although the Spanish domestic property market as a whole is still flat, the second quarter of 2013 recorded 80,722 transactions successfully concluded in Spain, 17% of which were from foreign investors. Purchases within the country are beginning to move, too. In the same period of time, 13,631 properties were actually sold to foreign clients.

Luxury properties are on demand

For the luxury market, it may be helpful to note that legislation is currently before the Spanish Senate to give extra help with the documentation concerning Spanish residency to investors spending more than 500,000 euros on a property. This will be particularly useful to non-EU clients who will then find access to other EU states much easier without the need for visas.

The Balearic Islands, still on top

Despite the improvements in investment conditions in Spain, the Balearics have their own particular qualities as a micromarket with its own favourable conditions. The climate, the whole way of life is something particular to these islands, which bring their own security of  investment. And Mallorca clearly attracts permanent residents of all ages, certainly not just retirees, a phenomenon quite different to, for example, certain parts of the coast on the mainland. The interesting introduction of a growing Russian and Chinese investment market here makes Mallorca even more special in investment terms.

However, consider also the fact that an average property spend by overseas clients here in the Balearics is 225,000 euros, way above the national average.

Although planning is necessarily restrictive in the rural areas of Mallorca, laws are being changed to improve opportunities for apartment developments which are certainly worth looking at for investment purposes. Related to this will be laws allowing the conversion of established hotels into apartments (providing that within two years, the entire building is renovated).

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