Mallorca Reclaims the Peak of Foreign Investor Interest in 2024

The Balearic Islands remain a focal point for foreign property investors in Spain despite a general decline in sales reported by General Council of Notaries (Consejo General del Notariado) in 2023.

In the third quarter of 2023, foreigners accounted for 31.93% of property purchases, a one per cent increase compared to the previous quarter.

These statistics reaffirm the Balearic Islands' prominent position in terms of transaction volume. The provinces of Málaga and Santa Cruz de Tenerife also sustain their allure, boasting figures significantly above the Spanish average. Alicante remains a popular choice for foreigners, accounting for 43.61% of property purchases.

In terms of percentages, foreign property acquisitions hover around the same level as in previous years, fluctuating between 30% and 34%. However, in absolute values, there is a decline in overall transactions, particularly among foreign buyers.

As of October this year, there were 3,337 property transactions in the islands, reflecting a 9.5% decrease from the previous quarter. Compared to the same period last year (October 2022 to October 2023), this marks a substantial 17.6% decline, the most significant drop recorded in Spain.

Monetarily, the transaction volume increased, but the number of houses bought decreased. This can be attributed to two key factors: the record-high cost of housing in the Balearic Islands, reaching €3,388 per square meter, and the surge in interest rates.

The rise in interest rates has made banks more cautious about lending, hindering access to housing and reducing transaction volumes. The Balearic Islands, in particular, experienced the most substantial decrease in home loans, with mortgage lending falling by 13.66% in the third quarter.

Despite these challenges, Mallorca remains a hotspot for foreign investors, especially in the luxury homes segment. Recent news highlights the property searches of megastars Taylor Swift and Angelina Jolie in Mallorca ([link to the news](insert link)).

Mallorca's enduring appeal lies in its unique blend of a pleasant climate, cultural richness, and a high quality of life. The island's beautiful landscapes, diverse cultural heritage, and luxury villas continue to attract foreign investors.

Maintaining stability in the property sector, Mallorca is an attractive destination for investing in luxury accommodation.

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