Large companies hoovering up Mallorca properties

This significant increase in prices has placed the Balearics above the average for this type of transaction. Only four autonomous communities, the Canary Islands, Castilla-La Mancha, Madrid and Catalonia, are above the region in this type of transaction. Registrars point out that this phenomenon is occurring across Spain, but more markedly where housing is a speculative asset.

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‘This change in trend may show a slight increase in the investment component in the property market, which is particularly relevant if this investment is intended for rental housing, given the shortage of supply in this area,’ say the registrars. This interpretation coincides, in part, with the explanation given by José Miguel Artieda, president of the Official Association of APIS in the Balearics.

‘Some of these purchases are due to companies ‘desire to reinvest,’ he says. However, he believes that another important factor must be taken into account in the Balearics: the fact that more and more companies in the hospitality sector are buying properties to house their staff.

Artieda explains that in recent years they have noticed an increase in the number of flats being rented by hospitality business owners for their employees. However, he believes that with the dramatic rise in rental prices, these same business owners have switched from renting to buying properties. ‘They are providing accommodation for their employees while also investing,’ he says.