Commercial Investment in the Balearic Islands

The Balearic Islands have recently benefited from the escape of capital due to high prices and the moratorium for new hotels in Madrid and Barcelona.

According to the data analysed, the real estate investment market in Spain will close 2018 financial year with figures similar to those obtained in 2017, 13,500 million, or slightly lower, and it will continue in expansion until 2020. In the same way, it is shown that Spain remains one of the most attractive countries for real estate investment and is the fifth European destination that captures the greatest volume of investment, on the list lead by the United Kingdom, Germany, France and the Netherlands. In this sense, investment funds are still the main players in the market, especially those of foreign origin.

The commercial sector in real estate is still the one with the highest volume of professional investment, reaching a total of 2,000 million euros.

Residential professional investment has evolved positively in the first half of the year and housing is still the preferred asset for both large funds and small investors, as 25% of operations have been made as investments.

The Balearic and Canary Islands are the preferred regions of the listed real estate investment company (socimi) that Bankinter will take to the stock market at the end of this year, as they have acquired 10 hotels in both archipelagos, what adds up more than 3,400 rooms. From a total of 23 hotels, 10 are on the islands: 5 in the Balearic Islands (4 in Mallorca and 1 in Menorca) and another 5 in the Canary Islands.

The idea is that these hotels allow to give back an annual dividend close to 5% to all the shareholders of the “socimi”, which will be quoted on the “MAB – Mercado Alternativo Bursátil” (Alternative Stock Market).

The main shareholders of Atom are Bankinter’s private banking clients, with a minimum investment of 200,000 euros and a maximum of 15% of their financial assets, but the bank itself, the manager of the “socimi”, GMA, and some institutional investors also take part in the capital.

This situation has contributed to the increase of private investment in construction. The increase in demand and promotion of housing, the latest impulse in the modernisation of hotels; and the industrial and commercial companies’ activity reactivation, have made the money that has been allocated from the private sector to building or refurbishing projects has increased an incredible 60.6% during the first four months of this year in relation to the same period of 2017.

Our foreign investment area offers legal assistance with regard to funds from other countries for investments in real estate and commercial Islands.
Our team has extensive international experience, we also have cooperation agreements with international firms.



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