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Why invest in the Balearic Islands

The real estate investment in Spain in 2017 reached record levels that had not been seen in the last decade. A full recovery of the sector was in different regions and at different levels. One of the autonomous communities that has shown better results for property investment is the Balearic Islands. The Mediterranean archipelago, which is a leading tourist destination in southern Europe, has many incentives that explain why investors are attracted to the region. In fact, this is the destination with a good part of last year's major real estate deals closing in Spain.

But what is it that makes the Balearic Islands a good destination to invest in? Firstly, it is one of the areas in Spain that has a better transport infrastructure network. The airports of Ibiza and Palma de Mallorca are directly connected to the major European terminals and, of course, to the rest of the country. The same happens with the ferry services, which connect the archipelago with the Iberian Peninsula in a very short time. As it is already situated within islands, the motorways and other secondary roads also facilitate the displacements due to their unique geography. What's more, in cities like Palma, urban transport options multiply.

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The location is undoubtedly the main attraction of the Balearic Islands. It is relatively close to the rest of Europe and accessible, thanks to the transport options we have already mentioned. In addition, the archipelago enjoys a practically unique climate, with a notable amount of sunny hours per year and mild temperatures throughout. The Mediterranean essence is completed by landscapes of great ecological value, such as the Sierra de Tramontana, well-preserved beaches, numerous coves, and a varied gastronomic offer.

With these benevolent conditions, it is not surprising that the Balearic Islands is the Spanish autonomy that receives a greater number of foreign visitors, mainly from other EU countries (United Kingdom, Germany, Nordic countries ...). This tourist influx is one of the mainstays of the regional economy, which translates into a per capita income slightly higher than the national average.

As a result of all the above, the Balearic real estate market is one of the most dynamic in the country, with special importance on the high-end market. The demand for luxury real estate has experienced a remarkable advance in the archipelago. According to the 2017 Barnes Report, last year, the average price of luxury homes rose by 12% in the Balearic Islands, compared to the 6% growth in the whole of Spain.

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