The European investment knows no crisis in the Balearic Islands, grows and exceeds the figures of previous purchases to the housing crisis
The Balearic Islands are the third most visited region of Spain after Catalonia and the Canary Islands, being a major focus of investment by foreigners especially from Europe. Balearic Islands is made up of the islands of Mallorca, Menorca, Ibiza, Formentera, among others, but are these the most attention from buyers.
Mallorca, the capital is one of the most important real estate markets worldwide. Mallorca has always adapted skillfully and respected the needs of its visitors and wealthy international investors. The real estate industry on the island is a brilliant source of income and villa owners or village houses for sale in Mallorca seriously contribute to the income of the island.
The trend goes in the direction luxury properties for sale or luxury waterfront residences in the countryside. These properties are being seized by buyers seeking a high level of privacy and who want to make the most of life in the stunning natural beauty of the island. These customers are willing to pay an attractive price for their most demanding and exclusive residences in places requirements.
In places fashionable Puerto Portals and Puerto Andratx draw with the last factor glamor and fashion marinas are also situated in the most demanding of the list of tastemakers. Villas and penthouses for sale in Puerto Portals and Puerto Andratx are labeled with a price to pay very high and that many are willing to pay because they know that an investment in both locations is a solid value for money.
Know the profile of European buyers in the region
The most common profile of the person who buy in Baleares is a German citizen with a family who pays cash and lives there for half the year.
Most often interested are German citizens, Swiss, Scandinavian and British, with strong currencies against the euro seeking a charming place, with one of the best climates in Europe, safe and easily accessible.
Germans enjoy to come to Baleares with his family to enjoy the sun, accompanied with a famous cuisine worldwide and with the security of being in a country of the European Union.
Nordics are mostly older adults with a good economic position come to enjoy excellent beaches and climate being close to their home countries. They have been growing in the market and represent nearly 20% of transactions.
For the British, his main interest is to enjoy the weather in a rest home or retirement, they are also motivated by the excellent airport connections between Spain and England, and that remain close to family and friends.
The Russians are fans of luxury, quality of life that exists in Mallorca and culture. They have been affected by the restriction to invest that exists in their country and have therefore chosen to apply for the Spanish residence, and set their retirement homes in the country.
Most operations luxury homes closed cash in less than six months in the capital, Palma de Mallorca, and just under three months after areas of the island, where prices per square meter are cheaper.
Why European investment keeps growing?
The real estate sector in the Balearic Islands is very diverse and offers all kinds of possibilities, both who wants to buy an apartment in Palma as you want to sell your home in Mallorca. Prices generally remain very similar to those of early crisis levels, allowing talk of a healthy sector with constant movement and where to invest is still an advantage in the short, medium and long term.
The ambience and atmosphere in the Balearic Islands is unique in the world, therefore, foreign investment grows apace so that purchases doubled in 2013 compared to 2008 with a total of 3571 property sales.
We present below some of the main reasons:
- Palma de Mallorca is ranked as the second best destination in the world to live, so the overall quality of life for their services from multilingual to upscale restaurants schools, their nature, leisure and culture, health services . Dubai only removes the title of best city in the world to live.
- Although the average price of resale property in Baleares is around 150,000 euros, the investment required to buy an apartment in Mallorca or any of the other islands has fallen around 75,000 euros in recent years.
- Mallorca has a privileged and strategic location relative to the rest of Europe, this makes it easy to get in or out of the Balearic Islands from any of the major airports in the continent.
- After the housing crisis, property prices fell, making now a perfect time to invest and achieve capitalize future.
- The properties of the region are characterized by avant-garde architecture, which adapts to the high lifestyle of its visitors, providing further comfort and safety.
- The Mallorcan legislation also establishes that 40% of the island is restricted, so you can enjoy a healthy environment and that will continue in the future.
- The prices of properties in the Balearic Islands are much more accessible to properties in other cities with similar markets like Miami, Cap Ferrat or Costa Smeralda in Italy.
- The nightlife in the region is impressive, especially in Ibiza, where the party seems to never end. Some of the best clubs in the world are here as Amnesia, Space, Bora Bora and Pacha, just to mention a few, which feature famous parties that have hosts like David Guetta, Tiesto, Armin van Buuren and Carl Cox, ie, the best DJs in the world.
The preferred destinations of the Balearic Islands
Mallorca is the largest of the archipelago of the Balearic Islands island, and is also a very popular tourist destination, not only nationally but internationally for its rich cultural history and have amazing places, which love to explore tourists . However, there is another important reason seems to hide behind the popularity of Mallorca, is that this area has been welcoming the rich and famous from all over the world, as a result of being one of the larger markets that have designated for luxury accommodations and other high-end properties. Hundreds of people from all over the world have invested in property in Mallorca, these investments have been really profitable for them as even the most expensive properties that were sold in 2012 and have risen and have even increased the market price.
High prices reaching luxury plots in Mallorca respond to the combination of protected territory and strict building regulations, getting the balance between supply and demand. In recent years, investors have bought existing properties, especially in the first line, to demolish and build anew.
By region, in the southwest of the island, sales soared 43% in 2014. In this region, he was born a category luxury of more than 10 million euros (last summer, lavivienda most expensive sold in the area was valued at 18.5 million euros). In Son Vida sales rose 25% and in Palma, especially in fashionable areas, Portixol and Molinar-, 10%. In the north, sales doubled due largely to the renewed interest of the British.
The island of Ibiza is definitely a collage of landscapes. The capital has a lively atmosphere and a walled old town. Also it draws the attention of all those who visit for its green fields planted with fruit trees. He also is one of the favorite destinations of tourists with its pristine white beaches and blue coves with clear water. It is said that the sunsets are film. And the easiest definition of Ibiza is: the mythical young, cosmopolitan and funny scene that defines the spirit of the island.
Ibiza is proving to be one of the favorites for the international jet set destinations. This is evidenced by the continued growth in air traffic of private jets on the island in 2014 it increased 6.5% following an increase of 19% in the previous year. The best connections and increased frequency of flights managed to get the number of passengers climbed by 8.5% last year. The number of tourists who chose Ibiza for their holidays increased by 13%.
In the Ibizan market, time to market a home well located remains on average between 12 and 18 months High demand for foreign focuses on an increasingly limited supply in the best locations on the island, which brings stability market and sustained growth.
The second home market is dominated by customers from German-speaking countries, followed by buyers from UK, Italy and France. The south and southwest are still the most exclusive areas of Ibiza. The prices of properties in the best locations can reach figures of over 10 million euros.
Know the success of real estate in Baleares
Ignacio Acosta Sorge, a real estate consultant with great experience in the market, makes an analysis of the rrent situation in Baleares.
2014 has been a year in which they have begun to see, for the first time since the crisis began, some lights in the real estate sector, with a slight recovery in investment, both by individuals and families as construction groups. Old areas, such as the old town of Palma, are the most attractive and, in fact, the restoration of buildings and their conversion into boutique hotels in the heart of the city being the most advanced and significant industry trends.
Mallorca is forming a new market segment of luxury properties in a price range of around five million euros. Before 2007, a luxury villa is two million euros and today, this price range has risen to five million, a trend that began in the Southwest and is spreading throughout the island.
In Ibiza, sales increased 15%, while prices in prime areas recorded an increase of 10%. The success of the Balearic Islands is mainly due to market stability and to the exceptional quality of life in the region, which makes it a magnet for shoppers.
The Balearic property sector has opened resuming the positive path 2016 marked the previous year. The best forecasts in the economic and employment plan continue establishing itself as the pillars of a more optimistic picture, which finally seems to point to the long-awaited normalization.
According to all forecasts, the value of housing in 2016 will be higher. In fact, the figures for the first month of the year show an increase of 3.2% in the price of the Balearic property, while the national average was 1.1%. The markets for rental and resale property in Balearic continue booming reflecting increased demand experienced in recent times.
Access to mortgages will be more flexible, so that credit for housing will continue to flow. Thus, the number of mortgage concessions may increase up to 30%, an amount that will go directly related to the level of income. As for the cost of the mortgage, the same sources paint a very positive horizon, marked by low interest rates.
In other words, this time is perfect for investing in the Baleares Islands. The europeans will continue the trend of being the leaders here, and according too the statistics, is expected that the purchase of properties by citizens coming from the rest of the EU will grow.
The luxury properties are the hot spot right now as is Mallorca and Ibiza.
Written by: CAPD
Contribution to the reader: know what the motivations of European investors to invest in the Balearic Islands, which is the profile you have, and what is the nationality of most of the buyers are. Also, knowing the attractiveness of Majorca and Ibiza together with the behavior of the housing market.