Mediterranean countries in general seem to be very good locations for developing golf properties, especially among a northern demographic, maybe because of the warm climate. Before we can speculate any further it’s time to take a look at the figures which currently surround the game of golf.
While not many people are familiar with or engage in the sport of golf, there is a rising number of enthusiasts which spend time on the green each year. The estimated rise is somewhere around 5% every year for the past two decades, which may not seem like much, but it’s still significant enough to determine investors to put their money into golf.
Actually, the KPMG’s Golf Benchmark Survey reveals that only 49% of golf properties in Europe, the Middle East and Africa turned in a profit last year. However, in Spain, and in the Balearics and the Canaries in particular, these seemed to have fared a lot better that the rest of the coastal properties. The figures speak for themselves: while elsewhere in Mallorca property prices on the coast have decreased as much as 35%, for golf real estate the decrease has been only 20%.
The reason for that low decrease is because golf properties have a wide range of amenities with sophisticated outdoor living, a course, club houses, restaurants and other things in a “community” spirit which doesn’t make the guest feel isolated.
Think about it, this type of real estate can generate income longer than a normal property in Mallorca which is only active during the tourist season. The main customers for golfing are mostly British, but also the local Spaniards are taking it up, as are the Scandinavians and the Germans.
So if you’re thinking of a smart investment in real estate in Mallorca, maybe you should turn to a golf property. Chances are that you’ll be getting a return on investment and then some.