Investing in Mallorca’s Real Estate market

Mallorca’s real estate market holds an elusive charm for buyers around the world. With its Mediterranean climate, wide range of property types, exclusive areas, and gorgeous scenery, it’s no wonder why.

Mallorca’s real estate market today

It’s always wise to consider investments carefully, and after the dust settles from the past couple of years many of us are considering how property landscapes have changed.

When it comes to investment in Mallorca’s real estate, experts are starting to see a clearer picture of how things are evolving. For example, The Spanish Notary Council publishes year-on-year statistics for various regions. For August 2021, they found that the national number of houses bought and sold rose by 11.9%. And, the good news is, in Mallorca, the year-on-year increase for August was 37.8%.

Checking current trends and consulting local property experts will give you a good idea of how the market looks and where to snap up the best deals.

What buyers are looking for

If your investment plan involves reselling the property, it’s important to know what other buyers are looking for. A recent report by Savills summarized what buyers want in Spain, based on a survey of their clients.

In terms of property features “a good view” ranked highest, just above “high-speed internet”. Meanwhile, proximity to amenities ranked higher (90%) than proximity to a beach (77%).

Rental investment opportunities in Mallorca

When it comes to rental investment opportunities in Mallorca, tourist lets can be an attractive option. Tourism reportedly accounts for 35% of the Balearic Islands GPD, much higher than the 12% national average. That’s a lot of domestic and international tourists looking for somewhere to stay.

However, it’s important to abide by local guidelines for rentals, which vary according to the type of let. Holiday rentals require a special permit, called an ETV license. This is a mandatory license which not all properties are eligible for, for instance if the property is on protected land or is brand new.

It’s essential to research your options. If you decide to proceed with tourist lets, why not consider buying a property that comes ready with an ETV license?

Foreign investors and Mallorca’s property market

It can be daunting to invest in property in another country. But foreign investors in Mallorca have a range of options.

It’s important to think about visas and residency eligibility, and apply for an NIE (foreign identity number) early on in the process if you don’t already have one – otherwise, this could slow things down considerably.

Interestingly, if you decide to invest €500,000 or more in a property, you should be eligible for a golden visa. This grants a special type of residency. Usually, you can add a legally recognized spouse or dependents to the application, too.

According to the newspaper El Pais, 681 golden visas were issued for real estate investments by foreigners in 2021.

Getting a reliable team

The Spanish Land Registry guide to buying a property in Spain talks about having the right members in your team when you purchase a property. This includes an experienced, local property lawyer who can help you protect your interests. To find the right lawyer near you, simply visit our directory.

It’s also a good idea to research your estate agent and think about getting financial advice if you need it.

Types of properties available in Mallorca

Luckily, Mallorca is a diverse island when it comes to property. You can find everything from rustic country houses to modern penthouses all over the island.

When deciding what type of property you are looking for, don’t forget to think about location and amenities as well. For example, a traditional townhouse that is full to the brim with Mallorcan charm will usually be found in a smaller town. Therefore, you might need to sacrifice sea views. Which is more important?

Likewise, a sprawling countryside property has the luxury of space, but it might not be near to local amenities. A trusted local estate agent can help you make the right choice, give you insights into the market, and help you see what’s on offer.

Property Lawyers in Mallorca

When buying a property in Mallorca, it’s important to hire a lawyer that you trust. Here at Property Lawyers, we aim to help you find the right lawyer for you.

We’ve helped over 1000 clients find a local lawyer who’s ready to protect their interests.

To get started, have a quick look through our list of lawyers in Mallorca, Menorca and Ibiza or get in touch.