Top 3 locations for international investors: Majorca, Ibiza and Switzerland

Up to a few years ago, a holiday property was the epitome of luxury. Today, however, such a purchase is also made on the basis of other factors. Owing to a historically long period of low interest rates and increasing liberalisation of holiday lettings, the purchase of a property abroad is becoming ever more attractive. With holiday lettings, it is possible at times to achieve gross returns of over 5% – quite apart from the property’s potential for appreciation.

Capital investors are increasingly focusing on foreign properties – in 2014 already one in three properties sold in the Balearics was bought by a non-resident.

Capital investors are increasingly focusing on foreign properties – in 2014 already one in three properties sold in the Balearics was bought by a non-resident.

Porta Mondial is the first real estate group to specialise in the “holiday property” segment. Since 2014 we have been offering a unique service through our subsidiary “Porta Holiday: a one-stop shop for purchase, long-term letting and holiday letting. Following a successful start in Majorca, we are planning to roll-out our new service in other attractive holiday regions.

Holiday letting in Majorca

Holiday letting was formerly prohibited by law in Majorca. However, at the end of 2012 this lucrative market was legalised and you may now apply for a letting licencefor tourism purposes for any detached or terrace house.

The new legislation on holiday lettings in the Balearics only applies to flats in exceptional cases.

The new legislation on holiday lettings in the Balearics only applies to flats in exceptional cases.

The all-in package offered by our Majorcan companies – “Porta Mallorquina” and “Porta Holiday” – is particularly interesting for property owners who do not live in Majorca. Firstly, we will find your dream property in Majorca. Afterwards we will handle the lucrative holiday letting for you, and also take care of managing your property. For you as the owner that means you simply make money – with no risk and no unnecessary costs. Interested? Find out more about our new service.

Investment in Ibiza

In the southwest of the island, close to Cala Conta, a highly respected German development company is building a premium luxury resort“7Pines”.

The 7Pines project in Ibiza guarantees its investors a return of 4% plus free holidays.

The 7Pines project in Ibiza guarantees its investors a return of 4% plus free holidays.

The new 5-star hotel complex comprises 43 buildings in Ibizan style. Each of the 1 to 3-room apartments features comfortable and luxurious appointments, and has either a private garden or, on the upper level, a terrace. As the owner of one of these luxury apartments, you can sit back and relax: the operator (Lindner Hotels) will take care of lettings, and guarantees you a fixed return of 4% on the net purchase price.

And, best of all, you can also spend a holiday in your own apartment – 2 weeks between May and October, and any time during the low season. Naturally, you can avail of all amenities at the complex during this time, and a concierge service will attend to your needs, according you special privileges as a First Class guest.

Porta Ibiza’s team of consultants is at your disposal if you would like further information.

Investing in Switzerland

Capital investment in euro-independent Switzerland is more popular than ever before. But opportunities for non-resident foreigners to acquire property there are limited. Our colleagues at Premier Suisse Estates, Porta Mondial’s sales partner in Switzerland, have discovered a veritable treasure trove for you here.

These holiday apartments in Crans Montana are in one of the few residential developments in Switzerland where non-resident foreigners are allowed to buy.

These holiday apartments in Crans Montana are in one of the few residential developments in Switzerland where non-resident foreigners are allowed to buy.

In Crans Montana, southern Switzerland, 6 luxury apartments are currently available for sale to foreigners. The “new St. Moritz”, as it has been dubbed by the experts, possesses great appreciation potential. If you would like further information the team of consultants at Premier Suisse Estates will be delighted to assist you.

Great potential for appreciation

Apart from Majorca and Ibiza, Menorca, the Canary Islands and Spain’s Mediterranean coast also offer good investment opportunities at the moment. Prices have bottomed out, and are on the rise again in sought-after locations. This puts the Spanish real estate market on the level of Germany and other European countries before the financial crisis of 2010.

In the last five years, prices have risen by 10 to 20 per cent in the residential property markets, and even far more than that in conurbations such as Munich, Hamburg and Frankfurt. This development has not occurred to date in the Spanish holiday regions and major cities, owing to the pressure of the burst property bubble – so this is the ideal time to get back into the market.

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