The Balearic property market continues to be a good investment.
The numbers don’t lie. The Balearic market has continued to be a trend for real estate investment in 2022. The big question for our clients is whether it is appropriate to continue investing in the Balearic property market. Living or investing in paradise is becoming more expensive every day, but it is a safe investment due to the constant growth of the market. At Bufete Frau we have analysed and summarised the market situation for the last year (2022) and the conclusions are very favourable.
Currently, investing in a property in Ibiza, Mallorca, Formentera or Menorca, is an investment with a long term profitability. Moreover, investing in a paradise like the Balearic Islands offers numerous advantages, among them, if you are not a Spanish national, you can acquire the visa quickly and privileged with the Golden Visa. The Golden Visa is the easiest and most beneficial residence permit in Spain. In order to obtain the visa, you only need to make a significant capital investment, which can be in the real estate sector.
According to EPData, January 2022 began with the sale and purchase of 1,425 properties and in February, 1,416, until March, which reached the number of 1,933, with the real estate market exploding again in the month of May, with a total of 1,763 sales. As regards the other months of the year, and as stated by the General Council of Notaries, the average of 1,400 sales and purchases per month has been maintained.
An average of 17,100 purchase and sale operations in the Balearic Islands.
In one year, an average of 17,100 purchase and sale transactions have been carried out in the Balearic Islands.
As a result, the Balearic square metre is increasing in value, making it a solid, secure and profitable investment product.
The evolution of the price, in terms of purchase and sale, has been rising month by month, year by year, starting in August 2014 with a price of 2,090 €/m2 and reaching, in June 2022, a price of 3,147 €/m2.
The price has been rising steadily, even during the pandemic period, the effect of which was only to lower the price of land by 50 €/m2 compared to its natural growth trend, without, of course, slowing down its natural evolutionary line.
As far as rent is concerned, it started in August 2014 with a price per m2 of €7.59, rising to €12.51/m2 in June 2022, an increase of 11.28% compared to November 2021 (€11.44/m2).
This year 2022 stands out for placing the average price of a house at €850,000, with the sale of 80% of homes being between €200,000 and €3,750,000.
Thus, the forecast for the end of the 2022 quarter is for property sales to account for at least 11% of the year-on-year rate, as the third September closed with a year-on-year rate of 11.79%, according to the INE.
Steady growth of the Balearic property market in 2023
Everything seems to indicate that there will be no special developments for 2023: growth is constant, the trend is upwards, the Balearic market continues to be a prosperous and secure market.
If your intention is to buy a property in Ibiza, Mallorca, Formentera or Menorca, you are still in time to make a good investment for the future.
At Bufete Frau, as expert lawyers in real estate law, we advise you to buy as an investment as soon as possible, as this ensures the profitability of the purchase.