Investment Property in Palma de Mallorca

Invest in Real Estate in Palma de Mallorca

Investment Property in Palma de Mallorca
Investment Property in Palma de Mallorca

Palma de Mallorca property investment can be a worthwhile venture if you are selective with the areas you choose to invest in. If not, you could find that your investment suffers due to low rental yields, dwindling demand, and slow property price growth in many parts of Palma de Mallorca .

Search Map of Palma de Mallorca Investment Real Estate

Palma (Catalan: [ˈpalmə]; Spanish: [ˈpalma]; also known as Palma de Mallorca, officially between 1983–88, 2006–08, and 2012–16) is the capital and largest city of the autonomous community of the Balearic Islands in Spain. It is situated on the south coast of Mallorca on the Bay of Palma. The Cabrera Archipelago, though widely separated from Palma proper, is administratively considered part of the municipality. As of 2018, Palma Airport serves over 29 million passengers per year.

The financial stability of Palma de Mallorca has translated into a real estate market that rewards forward planning and a willingness to look beyond areas of traditional affluence.


Buy to Rent in Palma de Mallorca


Renting out your Palma de Mallorca buy-to-rent investment property can grow wealth and income.


Whatever your goals with investment property in Palma de Mallorca are – preparation is key.


  • Set goals based on how much rental yield will be required and the local rental yield rates in Palma de Mallorca and be prepared to change your initial outlook.
  • Thoroughly research the Palma de Mallorca location with a special emphasis on fringe areas outside the main Palma de Mallorca metropolis that may be valued lower than their better-known neighbors. Rental yields of around 5% are still attainable in certain areas of Palma de Mallorca.
  • Ensure that your target investment property in Palma de Mallorca appeals to professionals. This is a demographic that ensures maximum income and low voids.
  • Finding and vetting suitable tenants is a job ideally left to the professionals. Working with an established letting agent with local knowledge and experience of property legislation will give you the best chance of success.


With our expert guidance, investing in Palma de Mallorca provides the secure knowledge that your money is working harder than it would in a local Palma de Mallorca bank and that future generations of your family will be left with substantial capital growth assets.


We are always happy to advise on buying investment property in Palma de Mallorca, where we have been established for over 35+ years. Physis Realty has been a firm fixture in the Palma de Mallorca property market through good times and bad. Our experts have seen it all and our portfolios continue to outperform.

Flipping Investment Property in Palma de Mallorca

Flipping property in Palma de Mallorca


Flipping property is when we advise clients to buy a Palma de Mallorca property below market value, renovate it and then make a profit by selling it at a higher price, all within a few months, and often before the Palma de Mallorca market has a time to react to the renovation.


The Flipping Strategy in Palma de Mallorca


Investment property flipping in Palma de Mallorca is a simple strategy. You find a property that is in need of renovation from our list and purchase it for a low price. These type of Palma de Mallorca real estate investments are sometimes referred to by professionals as ‘distressed’ Palma de Mallorca real estate.


What is distressed Palma de Mallorca property:


  • Palma de Mallorca property in need of renovation
  • Palma de Mallorca real estate with a change of purpose and use
  • Oversold Palma de Mallorca property
  • Bank repossessions in Palma de Mallorca

Put simply, long term investors in Palma de Mallorca purchase the property, renovate it and make it a lot more attractive to potential buyers.


Calculate profit that you make from Palma de Mallorca investment property flipping:


Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

Palma de Mallorca property purchase price: $220,000

Renovation costs: $20,000

Other costs: $25,000

Property sale price: $400,000

Profit: $135,000


Experienced property developers in Palma de Mallorca use a minimum profit value of 22% when looking at potential Palma de Mallorca projects.


The reason for this is because there are lots that can go wrong in Palma de Mallorca property flipping and working on a potential margin of 22% should still leave a good margin of error.


Invest through a Fund in Palma de Mallorca


Property Secured Investments is a Private Equity fund that invests in Palma de Mallorca and many other towns and cities across Europe. The fund is only available to Sophisticated Investors and closed to United States Citizens. While this is not an offer or promotion of the fund, more information can be found at the website

Luxury Property in Palma de Mallorca

For luxury property investors hoping to add a superb property in Palma de Mallorca to their luxury real estate investment portfolio, Physis Realty is a trusted partner.


A world leader in luxury real estate with a portfolio comprising some of the most sought-after real estate in Palma de Mallorca, Physis Realty caters particularly to high net-worth individuals and families. A luxury real estate investment in Palma de Mallorca should be entrusted to only the highest-quality agency.

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