Real estate investment in Majorca it is the most profitable of the whole Spain. To describe the situation of European stock markets in recent times we can use the terms of instability and volatility. This negative situation in the financial markets made its appearance two years ago and became widespread in the mid of 2015. But it was in the first session of the year 2016, when it acquired a more disturbing nature.
Volatility in itself is not a negative concept. When markets are jittery, it tends to be good time to risk. However, the current economic context invites more caution. That is the opinion of the best analysts and investment banks such as Deutsche Bank, HSBC, RBS, UBS, Goldman Sachs and JP Morgan, which advised not to bet on equities, at least not until the storm passes. European stock charts are quite revealing in this respect, because they tend to be very often in red numbers.
Given this scenario of insecurity, both small and large investors consider to return to a traditional manner of investment which provides real estate market. It is not a completely risk-free sector but currently represents a much safer option than a stock market installed in a permanent state of seizure. In Spain, according to data from the Ministry of Development, the average housing price already accumulated five quarters of consecutive growth, while real estate investment grew last year more than 65%.
This panorama of new real estate opportunities appears especially pleasing in Majorca, where the increase of the price of the housing walks with determined step: the interannual growth of 5,4% (2014 – 2015) represents the best data, and by far of all the Spanish territory. The forecast for this year 2016 is also around 5% due to increasing demand, especially on the part of the Europeans from central and northern Europe, which in addition to making good investment, enjoy the Mediterranean climate.
In short, the indicators suggest that we are facing a housing market recovery, a good refuge for investors when ill winds blowing in the stock markets. And inside this market, the best option to invest and make your money grow, is today the property market in Majorca, because it gives a profit of 5% per year on average. Unlike banks, which continue down the interest rates, and the measures of the European Central Bank with its President Mario Draghi, leaving interest rates at 0%. The next step would be to pay for having your money saved in banks. Therefore, there is no doubt, that the winning option to multiply your money is to buy a House with swimming pool near the beach and/or a flat in the centre of Palma.
If you have money in a bank account that does not give profit or market shares that continue downward, consider this professional analysis. If you want to grow your money, do not hesitate to contact me. We have an extensive portfolio of properties throughout Majorca and I'm sure to find the one that best suits your needs and budget.
Author: Martin Hornak – Real estate agent, Property Adviser and Manager in Mallorca International
