During last year was verified that Balearic Islands, and mainly Mallorca, is one of the most attractive Spanish territories in which to invest. Foreign capital is concentrated in refugee values such as the tourist sector and the real estate sector, which have benefited from foreign flows.
The investment that comes to the Islands mainly comes from countries of the European Union.
The main sectors in which this flow of investment is invested are the real estate sector, tourism sector and finance. Real estate activities received more than 58 million euros, 11.6% of the total capital flow. The largest investments corresponded to the sale of real estate for own account (34.4 million), rent for own account (18.9 million) and property management (4.5 million).
The real estate sector is becoming the shelter of the richest people all over the world. These assets, which exceed 30 million dollars, not counting their habitual residence, prefer to invest in residential, offices and hotels before the swings of the stock market and the low yield of bonds.
In this sense, real estate investment in Spain offers rates of return that quintuple, in the worst case of the State Bonds to 10 years. The profitability offered by investment in houses to rent has increased to 6.1% from 5.5% a year ago, due to the strengthening of demand for rentals.
The return of greater and better financing, the stabilization of prices, and the increase of investments in a context of low interest rates offer the different statistics that measure the pulse of the market.
Swedes, French, Germans, Swiss and British are capitalizing on purchasing operations in Mallorca. Also, the increase of the aerial connectivity with Nordic and Central European countries has stimulated this increase of real estate operations in the last two years.
The stable growth of prices at a general level suggests that in 2017 will reach 500,000 transactions in Spain, 12% more than in 2016. In addition, the investment in housing will grow above 3% and the sale of real estate will move to the construction activity. 2017 could conclude with the signing of almost 90,000 visas for housing construction.
Whether you are a foreign investor or a national buyer don’t forget the need to have an expert advisor during the process of buying your property in the Balearics.
Throughout the whole process, the presence of a lawyer is essential to be responsible for providing obligatory advice to clients on legal, tax and legal liabilities acquired during the action of sale.
In Ripoll & Mateu Solicitors Mallorca, we offer our clients a comprehensive service in everything required for the sale of a property. We specialise in Real Estate Law and legal and tax advice in the process of buying and selling a property in Mallorca