We recently explored why a luxury rental might be your next real estate investment; now let’s take a closer look at a country with a thriving luxury rental market and hear directly from our local area experts there.
Balearic Islands, Spain
The famed Spanish archipelago just off the eastern coast of the Iberian Peninsula is known as an international travel destination, for its Mediterranean climate, and its four islands: Mallorca, Menorca, Ibiza, and Formentera. Then there is of course the warm personality of the people, the historic culture, and the excellent cuisine – an ideal combination of features for the perfect vacation.
Sotheby’s International Realty (SIR): What are the benefits of owning a rental property in your country?
Nadine Woitas, Head of Rentals, Mallorca Sotheby’s International Realty (NW): Owning a home in a sunny place is more attractive than ever and owning a property with a rental license allows you to benefit from your home in the tranquil, sunny winter season, while your home country might be cold and rainy. At the same time, in summer you are generating income by renting it.
For non-EU residents the Golden Visa might be a reason to buy a home in Spain and rent it out, as it gives access to all Schengen countries to do business or to live in any of these countries without the obligation to physically be living in Spain.
SIR: What trends are you seeing in your rental market?
NW: Since the ability to work remotely has become the focus of many companies, we are seeing a lot of demand from the northern European countries as they would rather choose for a more pleasant environment to work in. Within Spain, we are seeing a shift from weekenders to one, or even two-week stays as they combine holidays with remote working. There is also a higher demand for properties with terraces in the city, and with gardens in the countryside.
SIR: How does the rental market drive business for your company?
NW: By renting a property with us, the tenant gets to know all ins and outs of the location. They are likely to fall in love with the Balearic Islands, and that may convince them to buy a property here in the future.
All of our islands have a Sotheby’s International Realty office, and each offer a temporary living solution to our clients while they search for their next home.