Mallorca – a solid real estate investment hotspot in the Mediterranean

For many investors 2009 may be one of the most difficult years to anticipate where to invest and the uncertainties of international stock markets has underlined the advantages of investing in bricks and mortar.  Mallorca’s luxury second home real estate market has rocketed in the last decade making it a prime destination for investors and in spite of the global financial crisis investing here can still deliver solid, long term returns.


Previously potential second home investors may have found this region out of their price range and now find that this is the time to buy within their budget. In the last few weeks an encouraging number of enquiries have been received from all over Europe and the main visitor groups to these islands.  Many enquiries are obviously from clients looking for a holiday home as they are focused on the apartment market.


Furthermore, the forecast for late spring/early summer looks promising with many potential clients looking seriously to buy.

Balanced Supply & Demand…

Financial Times Highlights Mallorca as Safe Investment Location


One of the major attractions to this island is the fact that stringent local government controls ensure that new developments are strictly restricted and that any development maintains a sustainable balance between the land and its population.


Mallorca, for example, was highlighted in the Financial Times as one of 10 locations worldwide to safely invest in 2009 because of the island’s balanced supply and demand situation.

Easy access

Mallorca’s unique location in the heart of the Mediterranean means that they are only two hours flying time away from most European cities with direct flights year round. The Spanish Airports Authority (AENA) announced in March of this year a €352 million plan to invest in each of the three Balearic International Airports of which €240 million will be spent in Mallorca between now and 2012 to improve and expand facilities for future development.

Property & Price Range

In this region, the investor will find an extraordinary range of property from the traditional country house referred to as a “finca” to stunning historic townhouse “palacios” in Palma to idyllic waterfront villas of every description and cutting edge contemporary design.  Mallorca attracts many artists and architects which produces a great deal of innovative design.


Prices range from around €250,000 for an apartment to just under €1 million for a luxury villa to literally millions of euros for a finca estate or a prized waterfront property.

Local Investment Continues…

The current financial crisis might continue to slow down the real estate market for another 12 – 18 months. However, this is regarded as a “blip” with continued investment by the local government in all the islands.


On Mallorca the local government has pledged €4,000,000 on improvements to roads, building new rail links and tunnels on Mallorca. A €23 million investment project to construct a new jetty in Palma’s West Quay to enable “mega” cruise ships to dock at the same time is currently coming to completion.  Over €120 million is being invested in the new Congress Centre in Palma, which is scheduled to open in 2011.

Mallorca’s enduring popularity stems from the fact that it successfully manages to combine a sophisticated infrastructure and modern facilities whilst maintaining its glorious countryside, mountain ranges, beautiful beaches, authentic villages and traditional culture.  Furthermore, the islands is internationally regarded as safe and secure and each year welcomes many famous celebrities, politicians and royalty, including the Spanish Royal Family who have their summer residence on the island.

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