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Keen interest from international investors is good news for the Mallorcan economy

It’s not all doom and gloom in the Spanish economy – Mallorca in particular.

The latest bit of good news is that international investors are looking at Majorca and seeing excellent financial opportunities in which to invest, particularly in the island’s hotel sector.

Described as a ‘mini boom’ it seems like the hotel investment sector in Mallorca is now well and truly open for business. Americans, Chinese and Arabs are showing substantial confidence and interest in hotel investment on the island, and 2014 and 2015 are confidently expected to be further growth years for the commercial real estate market.

The Mediterranean’s most successful tourism market

The event that caused shock waves recently in the tourism sector was the sale a few months ago of the Valparaiso hotel group to a Chinese investment fund for around 50 million euros. So with Mallorca operating the most successful tourism market in the Mediterranean, it’s easy to see why ‘big hitters’ like Bill Gates, Warren Buffet and George Soros, (as well as various international venture capital funds) can see attractive investment opportunities lying ahead.

Sale of hotel assets up by 15%

After several years of economic stagnation in Spain and the Balearics, the market for hotel sales has at last woken up from its deep sleep. In fact, in the last year the sale of hotel assets has gone up by an impressive 15%.

However, as you can imagine, investors are particularly selective when it comes to parting with their hard earned cash. They are mainly interested in the 'big six' cities of Palma de Mallorca, Malaga, Barcelona, Madrid, Sevilla and Valencia. At the moment, it's almost as if the rest of Spain does not exist!

The party has just begun

Naturally it is Palma, with its old world charm and achingly cool, modern image that is top in the seduction stakes as far as investors are concerned.Amazingly, hotel investment went up by as much as 60% last year, a welcome sign that there is set to be a dynamic increase in both private and institutional funds ready and waiting to be invested in the Mallorcan hotel sector. As one local hotel investment expert puts it rather succinctly: 'The market is hot!'

And that’s not all. Investments in hotel renovations and refits have actually quadrupled in the last year. The party has just begun!

If you’re looking to invest in Mallorcan real estate, or simply want to buy a holiday property on the island, you will find a wide selection for sale here: www.balearic-properties.com

In one of her interviews, Iris Grunewald, the managing director of Vogue Properties in Mallorca, confirmed the re-establishment of market. In 2012, the real estate market in Mallorca was not considered good for investments but it has grown considerably in a year and now in 2013 it is attracting many investors from across the globe.

By Iris Gruenewald
Founder

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