Why Invest in Mallorca property?

Despite the anxiety surrounding other parts of Spain at the moment, Mallorca is still a very safe investment. Property prices are pretty much guaranteed to remain steady due to the fact there is limited land available for new construction, so any existing properties on the island will be in high demand.

Mallorca is one of the most expensive places to buy in the Iberian peninsula but with 300 days of sunshine every year, 23 golf courses, 25 marinas, as well as some of the most stunning scenery in Europe, plenty of Europeans consider it a sound investment.

Demand for property in Mallorca continued unabated throughout 2007, and UK buyers were at the top of the list for overseas buyers. 54,000 EU residents (of which 19,623 are British) now live in Mallorca permanently, together with an estimated 60,000 second home owners from UK

Property prices have become as stellar as the list of celebrity owners on the Island with values over the past decade soaring around 170 per cent. The top end of the market continues to be very strong with very good capital growth anticipated over the next 5 years.

Building regulations, once unheard of in Mallorca, now ensure that new homes are of a high standard; tall towers are banned in a bid to avoid Spanish mainland-style over-development; and many areas have a quasi green belt designation, so detached homes must be in large plots to avoid dense development.

Other reasons behind the surge include the relatively stable exchange rate between sterling and the euro and the greater competition between Spanish mortgage companies lending to overseas buyers leading to readily available finance with low interest rates.

Accessibility from the UK and Ireland is another major factor in the success of the Mallorca property market with reasonably priced flights of around 2 hours available from Belfast, Birmingham, Bristol, East Midlands, Edinburgh, Exeter, Glasgow, Liverpool, Leeds, Manchester, Newcastle, Southampton and all London airports plus Dublin and Shannon. Links with the rest of Europe, especially Germany and Scandinavia are also extensive.

This provides a huge market for property investors looking for long or short term rental income in addition to capital appreciation.

The Island has always understood the benefit of foreign investment and make property acquisition and legal procedures simple with no language skills required. For income tax the flat rate is 25% of the gross rental income and Capital Gains Tax is applied at 18% for E.U. non-residents and residents alike.

A resourceful infrastructure provides all the necessities for absent landlords with an abundance of property management companies providing all necessary key-holding, maintenance and security services, backed up with a proficient service industry.

With our specialist Pinpoint Property Investor Service, we understand the very specific needs of Investors and with our expertise and knowledge of the Island are able to provide information on new and forthcoming developments, some before marketing commences – very difficult unless you are based here.

Pinpoint Property Investor Service will work on a brief from Investors to identify investment opportunities in the real estate sector, using our network of contacts, both agents and developers. We will undertake all the necessary work involved in researching, analysing and preparing a unique individual property portfolio – saving you time, money and hassle.

Contact us with any initial queries and we would be pleased to arrange a meeting to discuss your requirements further.

See our guide to Property Locations in Mallorca

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