Real Estate Market in the Balearic Islands: Recovery and Investment Opportunities
After the pandemic’s initial impact, the Balearic Islands property market showed an impressive capacity for recovery. During the months of March and April 2020, indicators reflected a sharp slowdown in both activity and prices. However, following the end of confinement, the market rebounded quickly, demonstrating the region’s strong real estate fundamentals.
According to data from the Balearic Association of Real Estate Services (ABSI), the number of property transactions in 2020 was nearly the same as in 2019 — a clear sign that the health crisis had only a minimal effect on long-term real estate activity in the islands.
Positive Outlook for 2021 and Beyond
Experts predict a continued increase in sales across Mallorca, Ibiza, Menorca, and Formentera, although there remains some uncertainty regarding price trends. The reopening of tourism and renewed consumer confidence have created a wave of optimism, positioning the Balearic housing market as both a lifestyle choice and a stable investment opportunity.
At Bufete Frau, our legal team specialises in real estate transactions for both residents and non-residents, offering full legal support for property purchases, sales, and due diligence. Whether you are investing in a second home or expanding your portfolio, we ensure that every step complies with Spanish and Balearic property law.
Lombard Credits: Financing for Property and Renovation
For those seeking financing solutions for property purchases or renovations, Lombard Credits can provide an effective alternative. Offered through CAIXABANK WEALTH MANAGEMENT LUXEMBOURG, part of the CaixaBank Group, this credit system allows clients to secure loans backed by their investment portfolios.
Key benefits include:
- Flexible financing access for purchases or refurbishments.
- Personalised advisory options to suit your investment needs.
- Application of PIT regime for transfers between Collective Investment Institutions.
- Freedom to choose fund marketers and custodians.
- Succession planning with international insurance companies via Unit Linked structures.
- Secure custodianship under a regulated European banking entity.
For personalised guidance, contact:
Gabriel Mir Pieras – Private Banker
📧 gabrielmir@caixabank.com
📞 +34 679 417 773
📍 Alexandre Rosselló, 40. 07002 Palma de Mallorca
For legal assistance in real estate investments or financing in Mallorca or Ibiza, contact Frau Legal. Our team will ensure your transaction is secure, compliant, and optimised for your financial goals.
