July 2022. Back to summer, back to our old ways. In the Mediterranean, if there is one destination that has always been our favourite, it is the Balearic Islands.
We are people of habits, of repeating what is good, and Mallorca is the “place to be” for any summer lover.
This is demonstrated by the latest figures: GDP growth of 9.9%.
The Balearic and Canary Islands are the autonomous communities that will grow the most in 2022, thanks to the reactivation of international tourism, the Spanish average being 4.2%.
The return of international tourism, the return of the summer, has already stimulated a 10.8% growth of the Balearic GDP in 2021.
In declarations of the Conseller de Turisme i Treball, Iago Negueruela “Baleares together with the Canary Islands, leads the growth in Spain”, the economy of the archipelago thus resumes the expansive cycle of prepandemia: by islands, all the territories grow intensely, although the Pitiusas are the islands where the GDP rises the strongest, with 11.4%, followed by Menorca (10.5%) and Mallorca (8.7%).
The most Profitable: the Property market in Mallorca
With the arrival of summer, the return of tourism and all the services in full operation, the money flow is also affecting, of course, the property market in Mallorca.
Being the Balearic Islands the Autonomous Community with the highest growth in Spain (9.9% according to the latest data), this growth also affects the buying, selling and renting of properties.
The Balearic coast continues to be one of the favourite destinations for any tourist, due to the quality of life it offers and the business opportunities that exist, added to the growth of remote jobs and the expansion of the so-called “digital nomand”.
This undoubtedly affects the real estate market, the impact of which has positive numbers for profitability.
Last year the profitability of rentals in Mallorca was 11.03% and in purchase and sale transactions, 12.17%, representing an overall return of 3.85% for Balearic homeowners.
The average price of second-hand housing has risen in May in 16 of the 18 municipalities with year-on-year variation.
In six of them it increases by more than 10 %: Santa Margalida with 45.5 %, Mahón with 20 %, Capdepera with 17.1 %, Sant Josep de sa Talaia with 13 %, Alcúdia with 11.7 % and Santa Eulària des Riu with 10.5 %.
In terms of price per square metre in May, the most expensive locations were Ibiza with 5,279 euros/m2, Santa Eulària des Riu with 4,894 euros/m2 and Sant Josep de sa Talaia with 4,744 euros/m2.
Balearic Islands: an example of Sustainable Tourism
The COVID19 pandemic has allowed the Government of the Balearic Islands to consider what model of tourism they represent and what model they want to offer.
The result has been a very ambitious commitment: to be a pioneer in the Sustainable Tourism model.
What is this Sustainable Tourism based on? It involves covering three aspects: social, economic and environmental
According to President Francina Armengol, this is an “ambitious strategy” to “turn the tourism sector into a driving force for positive impacts on society as a whole”, which will allow the islands to be “more sustainable in social and ecological terms” and which will not mean “going back to 2019, but reaching a better point in all aspects: in quality of employment, in salaries, in opportunities for entrepreneurs, in business, in environmental and social sustainability, in competitiveness, in equality and rights”.
What measures are intended?
- To increase protection for housekeepers, a group that is very much affected by accidents in the workplace.
- A commitment to a circular economy in the sector, so all companies will be required to have a circularity plan, which will make the Balearic Islands a pioneering destination when it comes to regulating this issue.
- Mandatory installation of double push-button systems in hotel WC cisterns, as well as the installation of water-saving devices on taps in washbasins, bathtubs and showers.
- In terms of waste, the regulation will prohibit the use of single-use bathroom amenities.
The Balearic Islands is therefore a pioneer in a tourism model that will soon be mandatory for any tourist destination.
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