Investing in aparthotels in the Balearic Islands is one of the most attractive strategies for those who want not only to preserve their assets, but also to receive a stable income. The two largest pearls of this region – Mallorca and Ibiza – offer completely different investment opportunities. Each of them has unique features of the real estate market, which are worth considering before deciding where to invest.
Mallorca: stability and long-term prospects
Mallorca, the largest island of the Balearic archipelago, attracts investors with its stability and diversity of tourist flows. Unlike Ibiza, this island is known for its diverse tourist market: both families with children and elderly couples who love a quiet holiday vacation here.
One of the key advantages of Mallorca is the long tourist season. Thanks to the mild climate, aparthotels here are in demand all year round. The resorts of Palma de Mallorca, Alcudia, and Puerto Pollensa are particularly popular. These regions offer not only beautiful nature, but also developed infrastructure, which makes them attractive to vacationers from all over the world.
Another factor to consider is the relatively affordable price of real estate. On average, aparthotels in Mallorca are cheaper than in Ibiza, which makes this market attractive to those looking for long-term and stable investments with a relatively low entry threshold.
Mallorca also offers many tax incentives for investors, especially if you plan to rent out apartments for a long term. Local authorities support the development of the tourism sector, which allows aparthotel owners to count on a flexible tax system.
Ibiza: high income and elite market
Ibiza, on the contrary, is known as an island of luxury, parties, and elite tourists. The holidaymakers here are younger and wealthier, and they come to the island not only for the beach, but also for the famous nightlife and festivals. This creates high seasonal returns for aparthotel owners.
However, it is important to note that the tourist season in Ibiza is limited to the summer months, which makes this market more risky in terms of regular rental income. In the summer, aparthotel returns in Ibiza can be higher than in Mallorca, but in winter, demand drops significantly. This is especially important to consider for those who are counting on a stable monthly income.
In addition, property prices in Ibiza are noticeably higher than in Mallorca. This is especially true for areas such as Playa d’en Bossa, San Antonio and Talamanca. Investing in aparthotels in Ibiza requires a large initial investment, but can pay off thanks to high rental rates during the season.
Short-term rentals are also regulated more strictly in Ibiza. The local government actively regulates the tourist rental market, which may be a barrier for some investors. Therefore, it is important to study all legal restrictions and possible tax implications before buying a property.
Comparison: Mallorca vs Ibiza
Property prices. In Mallorca, aparthotel prices are more affordable, making this market accessible to a wide range of investors. In Ibiza, prices are noticeably higher, especially in elite areas. Mallorca attracts those looking for a more stable and predictable market, while Ibiza is the choice of those willing to take risks for higher returns.
Returns
In high season, aparthotel returns in Ibiza can be higher due to a more affluent target audience. However, in Mallorca, income is distributed more evenly throughout the year due to family tourism and a mild climate.
Regulations
Ibiza has strict laws restricting short-term rentals, which can make it difficult to quickly return on investment. In Mallorca, the laws are more flexible, which makes the island attractive to those who count on long-term rentals and a stable income.
Target audience
Mallorca is aimed at a wider audience: families with children, retirees, travelers who prefer a quiet holiday. Ibiza, on the contrary, attracts a young and wealthy crowd, which makes the market more niche.
Where is the best place to invest?
If your goal is long-term stable investments with relatively low risk, then Mallorca may be an ideal choice. It has a more predictable market, developed infrastructure and flexible laws that allow you to rent out property for both short and long terms.
If you are ready to take a risk for a high return in a short period of time, Ibiza offers unique investment opportunities. High rental prices in the summer season can provide significant profits, but it is important to consider the seasonality and legal restrictions.
