Licensed townhouse in Deià

Set in the heart of Deià, one of Mallorca’s most sought-after villages, this four-bedroom, three-bathroom townhouse holds one of the market’s rarest assets: a valid ETV holiday rental licence. Stone façades soften into the hillside, blue shutters open onto quiet lanes, and every window frames the mountains of the Serra de Tramuntana — the kind of setting that keeps drawing international buyers back to Deià year after year.

The investment case is as considered as the setting. Total acquisition lands at €1.85M — €1.7M for the house, €150,000 for the light restoration and project management that carries it to rental-ready. From there we underwrite around €83,000 of net rental income a year, a ~4.5% net yield on the all-in cost. Layer on ~7.5% annual appreciation — roughly €139,000 in equity growth on a €1.85M base — and the total annual return works out to approximately 12%.

The long thesis is scarcity. Licensed holiday homes inside Deià are effectively capped, planning restrictions rule out new supply, and demand from international buyers for prime Tramuntana villages has held for decades. Together they turn a beautiful house into a rare combination of lifestyle, income and long-term capital growth.