There is no doubt that investing in Mallorca’s real estate is a totally successful decision. Palma is the Spanish city where the investment in real estate is more productive, showing a price increase of 16% in the last quarter of 2017, compared to the same period in 2016.

A recent survey comparing prices of housing in Madrid, Barcelona, Málaga, Valencia and Palma, shows that Palma and Málaga overcome Madrid y Barcelona in terms of real estate profitability

The coastal segment of real estate is the most dynamic one because of the increasing interest of people with savings on buying properties to rent afterwards. The areas that are growing the most are still the ones with safer values.

The sale price in some areas like Palma and Calvià have reached historical highs. In the second quarter of this year the average price per square meter was 2,809 euros in Palma, and nearly 3,500 in Calviá. In both areas the prices have been increasing since late 2014, up to 50%. In the islands altogether, the prices have not yet reached its highest (that occurred in late 2008) although they are very close to it.

In relation to the final price of a property we have to take into account the high interest that foreigners have in investing in Mallorca . This demand has caused that the recovery of new constructions is mostly luxury homes. To this we have to add the increasing demand from residents, that once found a job again, are interested in buying a house. Real estate promoters and agents are aware that there is a much higher demand than existing supply, and therefore the high prices.

In the same way, the number of people thinking of buying a second house in the short term has increased eight points in 2018, comparing to 2017. 18% of the Spanish people are in the process of searching for this type of property, compared to 10% last year. 43% of these potential owners think about buying a property close to the sea and 17% in the town centre of a coastal municipality.

Mallorca in general and Palma specifically are living a new real estate boom and the transactions keep increasing, especially with foreign clients that see the island as a good place to invest in again.

At Ripoll & Mateu we work to bring total satisfaction to our customers effectively by offering legal services and personalised assistance.

For foreign investment, we offer legal assistance regarding funds from other countries for investment in real estate and business.

We offer detailed advice in the field of internationalisation by providing services such as:

  • International Trade Consulting, recruitment, setting up companies, subsidiaries and branches.
  • Advice on tax issues: tax incentives for the internationalisation of companies, income earned abroad, international operations, etc.
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Data from recent statistics cast the following conclusions: The average price of second-hand housing in the Balearic Islands has increased by 1.2% in May compared to the previous month, bringing the value to 2,108 Euros per square meter.

  • This figure is 25.5% above the average in Spain.
  • Balearics are the fourth most expensive autonomous region in Spain, only behind the Basque Country, Madrid and Catalonia.
  • The price of new housing in the Balearic Islands has risen 3.1 percent in the first quarter compared to the same period of the previous year.

Balearic Islands are in the spotlight of foreign investors looking to buy a property in the Islands. Last year, the volume of transactions by international buyers exceeded 1,600 million, which implies a 50% increase over the last two years. Luxury properties are the most sought after by European buyers, more interested in buying rather than renting, which has caused a significant increase of the average price so far this year in different areas of Mallorca.

Citizens of Scandinavian origin are playing a very active role in this situation. They have focused on Mallorca to acquire a holiday home, which reaffirms the trend detected by the registrars during the last months of 2016.

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Mallorca is popular among the Swedes, and the question is, why? Their fascination for the island is relatively recent and is based on various aspects: the weather, the strength of the Swedish currency (1 euro is equivalent to 9.6 crowns) and the shortage on the real estate industry in this Scandinavian country, which makes it almost impossible for its citizens to acquire a house. Factors that together have caused overwhelming buying and selling. Among the top areas in which the Scandinavians are acquiring properties, highlight goes to Palma center, the old town and various municipalities of Serra de Tramuntana.

Furthermore, there is a neighbourhood in the centre of Palma targeted by every Swedish who wants to invest in Mallorca: Santa Catalina, known as “little Sweden”.

If you are interested in buying a property in Mallorca please do not hesitate to contact Ripoll&Mateu Solicitors Mallorca.

We’re specialists in Real Estate Law in Mallorca and we offer comprehensive advice on the process of buying and selling property.

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The forecasts of risk measurement agencies say that prices of housing will continue growing in Spain from this year until 2019 to reach 4.7% per year.

This will have a positive effect on bank’s balance sheets and the behavior of mortgage companies. In this sense, the specialists affirm that there is therefore no risk of a mortgage bubble, since for every four euros that were granted in 2007 today is allocated one euro for this purpose. The president of the European Central Bank (ECB), Mari Draghi, ruled out any danger in the euro area of a new housing or credit bubble.

The average price of second-hand housing has been in the Balearic Islands at 2,272 euros per square meter in April, a figure that represents an increase of 6.83% over the same month last year. Palma has been the second city where the price of used housing has increased the most from year to year, with 6.84%, registering an average price of 2.227 euros per square meter, just behind Barcelona.

Balearic Islands is in the sights of foreign investors looking to buy a home. Last year, the volume of transactions by international buyers – mainly European – exceeded 1.6 billion, which was a historical record and a 50% increase over two years ago. The luxury property is the most sought after by European buyers, more interested in purchasing than in renting, which has caused a significant increase in the average price in the last year in several areas of Mallorca

It should also be considered the boom of purchase by Swedish citizens. Property sales to Nordic citizens with high purchasing power have increased by up to 30% in the last three years. In the last four years the number of transactions on the island captained by these citizens has increased by 100% and the trend continues to rise. A demand that has skyrocketed mainly in Palma, where it has gone from three to thirteen specialized real estate agents in Scandinavian market in approximately ten years.

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Among the top areas for the Scandinavians are Palma center, the old town and the municipalities of the Part Forana, especially Serra de Tramuntana. There’s a neighborhood in Palma in which all Swedes want to live, Santa Catalina. Some people call it Little Sweden. The investment boom in the Palencia neighborhood has been spectacular in recent years.

If you are going to acquire a property in Mallorca do not hesitate to contact Ripoll & Mateu Solicitors Mallorca. We advise, defend and represent our clients at all levels. Our greatest asset is an infrastructure of professional leaders in each field of action, especially Real Estate and Tax, as well as our international vocation and multilingual capacity.

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The demand of luxury properties exceeds to the supply in the most exclusive areas in Spain mainly in Mallorca while the national real estate market attracts international investors with attractive prices and very competitive conditions.

The exclusive properties are sold in short time spaces for its excellent conditions such as valuations at market prices and excellent locations. The foreign buyers investment is considerably growing, the the analysis by source country shows that the British still represented the largest percentage of buyers. After the UK, the increased demand for luxury homes in Spain comes from France, the United States and Sweden.

Large international fortunes, with ability to purchase homes over half a million euros are active at the time of invest. The closing prices of luxury properties purchase operations are higher and timing of operations are being reduced between three and six months. This buyer’s profile, also known as “investors in lifestyle”, is not just focused in the potential appreciation of the property, they significantly value other aspects relating the quality of life of the country. Enjoy a good weather all year, a unique gastronomy offer such as sea views or frontline locations.

Mallorcan premium market is in a growth cycle. The most exclusive areas of the island (Andratx , Son Vida and Deià) remain being favorites between British, German and Scandinavian buyers. Building of new homes on the island practically came to a standstill since 2008, but in 2016 has experienced an increment of 55% in the number of requests for new residential projects compared to data recorded in the same period of 2015. This is the highest increment of the last ten years, in data of the Balearics Statistical Office (IBESTAT). The forecast for next year’s is of price growth between 3% and 5% and net sales will be almost half of what was sold in the maxima of the most successful years of real estate sales. In the same way, it’s confirmed as an attractive segment for investment.

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If you intend to purchase a property in Majorca from a foreign country like England or Germany, you should consider that both the jurisdiction and the processes to be carried out and the roles of professionals involved in it are different. 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.

At Ripoll & Mateu Solicitors Mallorca we advise, defend and represent our clients at all levels. Our greatest asset is an infrastructure of professional leaders in each field of action, especially Real Estate and Tax, as well as our international vocation and multilingual capacity.

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