Balearic Islands, the spanish economic engine

By AdmSolJM16

Balearic Islands are one of the great economic engines of Spain thanks to the good behavior of the tourism sector. So much so they lead in 2017 and will lead in 2018 the growth of the Gross Domestic Product.

Never before, the Balearics had grown as much as now. According to recent banking data, the economy of the islands is advancing at a year-on-year rate of 4.4%, a growth so strong that there is no precedent in this century.

In this sense, the complex situation that is going through the Balearic real estate market is fundamentally due to several factors:

– The investment funds, which are buying buildings in different areas of Palma, mostly in the Old Town and, as is the current regulations, are dedicated to making hotels of tourism inland.

– On the other hand, there are the SOCIMI companies that are dedicated to buying real estate assets to subsequently offer a rents to their clients. They buy flats or lots of flats through the bad bank and then rent them.

balearics-properties

Foreign investment will continue to reinforce price increases in some high-value areas and will lead to “real estate oases” that will persist over time. Thus, the new fragmentation of the real estate market must be made aware, and there are significant differences within the big cities. However, the distortions generated by the dynamism of some areas, will end up causing many savers to re-consider real estate investment as an option.

The profitability of deposits is close to 0% when the Bank of Spain estimates the gross profitability of housing per rent at 4.29% and puts it at 9.54%, once its revaluation is accounted for. Potentially attractive figures, although conditioned by two important issues: the costly maintenance of a home and its lack of liquidity in stress moments.

Real estate investment is in the center of attention but, unlike the “boom” of the past, we will have to be very selective since the population trend will not accompany in the long term and the additional push of foreign investment will only be felt in specific areas.

Our team is committed to providing the best work processes to provide our customers with the best results, in a constant quest for professional excellence. We establish external collaboration when circumstances require and are firmly committed to transparency and honesty in our actions.

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Increases the demand for premium properties in Mallorca

By AdmSolJM16

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.

Civil

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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