Luxury properties as a profitable investment

Luxury properties as a profitable investment

18/10/2022

Fiscal

The luxury real estate sector has become an attractive option in recent times for those who want to maximise the return on their investment. As a luxury real estate agency in Mallorca, we explain how this process works, the advantages it offers and many more details about it.

Special edition of the real estate newspaper Mallorca Zeitung, - Nr. 1.171 - 13th October 2022

May Pérez, Managing Director of One Mallorca


Mallorca as a property investment destination


Without question, Mallorca is one of the most privileged places in the world. It has a warm climate all year round, numerous hours of sunshine, a lush natural environment and beaches that rival those in the Caribbean. Undoubtedly, this is not only a place where you can enjoy a higher quality of life and everything the island has to offer, but also an excellent opportunity for a long-term investment.


You should bear in mind that unlike other forms of investment, real estate is not subject to currency fluctuations. Real estate, especially luxury villas on Mallorca, retain their value and even gain value over the years. Therefore, in many cases, an increase in value is guaranteed. Furthermore, the most exclusive properties are always in high demand, even when the general property market is stagnating. For these reasons, it is one of the safest and most profitable forms of investment that exist.


It is no coincidence that the demand for luxury real estate in Mallorca is rising sharply. Even the North American market is beginning to take an interest in the island's real estate sector.



Designer villa near Son Vida, REF. 1798.


Interesting regions for investing in real estate


In order to invest in luxury real estate on Mallorca, knowledge of the island's territory is essential to determine which regions are the most attractive from a profitability point of view.


Palma


Palma de Mallorca, also known as "the pearl of the Mediterranean", as the capital of the island, has an excellent range of luxury properties. The centre and the old town are mainly characterised by penthouses and multi-storey flats.


If you are interested in villas and larger properties, there is nothing like the luxury villas in Son Vida. This prestigious neighbourhood is located in a unique setting, elevated on the hills with magnificent views of the Bay of Palma. Unsurprisingly, this is the most exclusive area.


Southwest of Mallorca


The southwest of the island has the honour of being home to some of Mallorca's most expensive properties. Yet it is also the area with the highest return on investment. In this part of the island, properties overlooking the Mediterranean Sea and luxurious harbours predominate.


From our experience as a luxury real estate agency in Mallorca, we highlight the areas of Bendinat, Port d'Andratx, Portals, Cala Vinyes, Sol de Mallorca and the luxury villas in Santa Ponsa. It is therefore not surprising that all these locations have recently attracted the attention of investors. It is also worth mentioning the work of Mallorca's great architects, who have managed to give all the properties in this area a modern and elegant design.


Financing a property


Obviously, the most convenient way to make this type of investment is to be financially secure. However, this is not always possible or advisable.


In these cases, it is best to be aware of all the options available to you. Thanks to the cooperation with a large number of specialists, an agency for luxury real estate in Mallorca is a competent advisor for this. 


A clear example is short-term mortgages. With this type of financing, the money must be repaid within a short period of time, but the interest rates and fees are lower than with a traditional mortgage.

Furthermore, financing through a mortgage can not only preserve liquidity but also minimise property taxes.


Advantages of real estate advice specialised in the luxury sector


Investing in luxury real estate is a process that can be much easier and more convenient if you seek the assistance of a luxury real estate agency in Mallorca. Mainly for the following reasons:


  • Professional property advice often makes the difference between a good investment and a bad one. After all, they put their knowledge of the region and the property market at your service, as well as various strategies to maximise the investment.
  • They facilitate the entire process, taking care of all the administrative work and the most tedious part.
  • It is a safeguard that gives you security for your investment. 


For all these reasons, it is advisable to seek the comprehensive advice of a luxury real estate agency in Mallorca if you wish to invest in this type of property. Their experience and knowledge will enable you to achieve your investment goals to your complete satisfaction.


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