The Balearic Islands: The place to invest in real estate

The Balearic Islands are home to more than just a beautiful holiday destination.

They offer wonderful investment opportunities. Whether you’re looking to live in the islands and soak up the local culture, renovate and resell, or let your property for the long term, there are plenty of reasons to invest in real estate in the Balearic Islands.

Tourism potential

Tourism is a booming industry in the Balearic Islands, meaning investors are looking at excellent holiday let potential. In fact, tourism accounts for 35% of the area’s GPD, significantly more than the Spanish average of 12%.

This regular influx of tourists also means there are plenty of prime locations across the Balearic Islands for investors to choose from. For example, Mallorca’s capital offers the hustle and bustle of the city with its own sandy beach, while the Serra de Tramuntana mountains are home to gorgeous scenic towns.

If you decide to let your property to tourists in the Balearic Islands, it will need an ETV license. This is the mandatory permit that allows short-term rentals. These permits are granted based on specific criteria. So if you’re planning to let your property, you might consider buying a property that already has a license, in Balearic Properties.

Market value

With any real estate investment, the biggest question is “what will my return be?”. In the five years prior to Covid-19, Balearic Properties reported that Mallorca experienced significant price increases of 31%.

However, the pandemic disrupted the property market, meaning that savvy investors might be able to snap up properties for lower prices than previously expected. Experts are still waiting for a clearer picture of the future to emerge, and savvy investors should monitor current trends to spot the best times to buy. For the latest statistics, head to the Spanish Notary Council website.

Smooth purchases

Buying a property in a foreign country can be daunting. Even with the best research skills, it’s easy to get lost in local rules and foreign paperwork. Luckily, the Balearic Islands are no strangers to overseas investors.

In Q2 of 2019, the Spanish Notary Council found that foreign buyers accounted for 37.1% of real estate sales in the Balearic Islands. This far exceeds the Spanish average of 18.7%.

As such, you can find dedicated multilingual estate agents and lawyers around the islands to guide you through purchases and sales. It’s crucial to be able to access information in your own language to avoid misunderstandings and pitfalls. Local multilingual estate agents also have insider knowledge about local markets and can help you navigate hidden costs.

Varied architecture and styles

The Balearic Islands are home to stunning properties of all shapes and sizes, meaning investors can have plenty of choice. Looking for large plots with lots of space? Try a rustic finca set in the beautiful countryside. Looking for a stunning view? Try a coastal frontline property, with private sea access.

You can also find exquisite luxury properties in the Balearic Islands. Many of these come with high-quality finishes, along with a beautiful blend of natural materials and contemporary comforts. Alternatively, you could find a plot and work with local architects and builders to create your ideal vision.

Quality of life

There are many reasons the Balearic Islands make a wonderful permanent, second, or holiday home investment. There are over 200 beaches in Mallorca alone. In the summer, temperatures there peak at around 29°C, with highs of about 15°C in winter.

With UNESCO World Heritage Sites, miles of gorgeous coastline, pine forests, and olive groves, the scenery is enchanting.

But it’s not just the countryside that makes the islands a fantastic destination. A few years ago, Palma was named The Sunday Times’ best place to live in the world. Their reasons included:

• Picturesque old town
• Beaches within walking distance
• Great climate
• Short drive (10 minutes) from the airport

Towns around the Balearic Islands are packed with shops, restaurants, bars, family activities, and local amenities. What’s more, everything is close by. Anywhere on an island can be reached in less than a couple of hours, meaning investors can have it all!

Property Lawyers

Here at Property Lawyers, we’ve helped over 1000 clients to find a local lawyer, protecting their interests as they buy a property in the Balearic Islands and elsewhere. To find a lawyer in Mallorca, please see our list.

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