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.
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.