At Palmer Alma Mediterránea we take very seriously everything that has to do with the present and future of our sector and we are attentive to any situation that may arise in our environment; we have more than 20 years' experience and this obliges us to analyse in detail any event that may affect our clients. According to BBVA Research estimates, the Balearic Islands' GDP grew by 10.5% in 2021, driven by the recovery in tourism, spending by Balearic households and companies, as well as by the impact of public policies, both from the central and regional governments.
Although growth will remain high over the next two years (2022, 2023), the consequences of the invasion of Ukraine will weigh on the recovery. The sanctions imposed on the Russian economy and the increase in raw material prices will limit the advance of GDP in the Balearic Islands which, in any case, could reach 7.1% in 2022 and 5.0% in 2023, which would make the island economy the fastest growing in Spain during the three-year period.
Several factors suggest that tourist numbers and spending levels during the peak season will be similar to or higher than those observed prior to the pandemic. These include reduced health uncertainty, the use of savings accumulated during confinement, and the attraction of visitors seeking destinations that provide security. Public policy will be key to minimising the effects of the war. The fall in electricity prices will be important. In the absence of a rent pact, the uneven impact of inflation may increase social unrest. Uncertainty persists over investment linked to Next Generation funds from Europe and spending could leak into higher imports in the face of supply constraints.
The real estate market in the Balearic Islands is still very active for investors and you can find very good products at a good price, so it is good to be advised by experienced advisors who bring you that product and do not enter into a phase of pessimism due to rising property prices or interest rates. At Palmer Alma Mediterránea we help you with the search for the best product and we accompany and advise you so that you get the best financing. Trust in us.
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