In 10 years, Balearic Island have increased the influx of tourists by more than 30%. The investment in real estate with tourist character, has increased in very positive numbers. The purchase of hotel properties or luxury estate, which is a refuge for investors from around the world, continues to grow as the island offers safe investment value.
The Balearic Islands become one of the areas of Spain with the highest influx of tourists, even having raised average prices up to 45% in the same period, according to the Hotel Market report from 2019, presented by TINSA.
Hotel establishments have been the ones with the highest average daily rate increase in the entire national territory. Specifically, 45% more.
Recently an American business magnate and investor Warren Buffett has announced that he will sell luxury apartments in Spain with Mallorca as a goal. Buffett’s company enters Spain as part of its expansion in Europe, where it already has an outstanding presence in Germany and Portugal, after doing so also in London and Milan.
In EQUUS MALLORCA we have a wide portfolio of high value real estate products.
THE INVESTMENT IN HOTELS in Mallorca ensures a revaluation of up to 10% and will improve over the next 3 years. TINSA maintains that five-star hotels revalued an average of 10% in Spain in 2018, despite the slowdown.
The analysis stands at 171,625 euros the average value per room of the five-star establishments in 2018 in Spain, 33% more than in four-star hotels, where the average per room stood at 171,625 euros, and twice as much as in three-star hotels (83,217 euros per room).
The value per room will improve in 2019 up to 5% in five-star hotels and 2% in three and four stars. More in hotels on the beach.
According to the president of TINSA, Rafael Gil, the evolution of rates and occupancy has increased the valuation of real estate above what the replacement cost has done, thus increasing the profitability of the investment.
TINSA, is the leading company in Spain in valuation, advice and smart real estate data, and belongs to the CIVEN venture capital business group.