The report indicates real estate channelled 80 per cent of foreign investment in the Balearics, most of it coming from Germany.
The Research Centre said that 90 per cent of the new firms had a maximum of two workers.
The real estate boom shows every sign of continuing this year.
Earlier this week it was reported that supermodel Claudia Schiffer had sold her extensive Camp de Mar (Andratx) property to a Russian millionaire businessman for 11 million euros.
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