Why development, and not another purchase
Many investors who know the Balearics have already bought property here. What interests them now is creating something: a house on a good plot, designed with care and built properly, rather than another asset that simply sits there. Development offers that, together with risks that need to be understood before the first payment.
Taking part does not mean running a building site. Investors are kept informed at agreed points, from licence to handover, and decisions that change the budget or the schedule are shared rather than taken quietly. What you need is not construction knowledge but a clear view of what you are agreeing to, and the patience that building on an island requires.
How participation works in ON Circle
Projects in the circle usually bring three parties together: a landowner who contributes a plot, investors who contribute capital, and the team that plans, builds and fits out the project. Each project is set out in a members’ exposé: the land, the planned building, the budget, the schedule and the intended exit. How investors take part, and on what terms, is defined per project and agreed in writing.
Returns depend entirely on each project. They are shown as scenarios in the members’ exposé, with the assumptions behind them, never as promises.
The four questions that matter most
Any project, ours included, should answer these clearly before you commit:
- Licence: has the building licence been granted, or how far is the application, and what does the plan depend on?
- Fixed build cost: is construction agreed at a fixed price with named builders, and what is excluded?
- Exit: will the house be sold, held or let, to whom, and what happens if the market takes longer than expected?
- Timeline: how long from licence to completion, and where are the realistic points of delay?
Add to this the title to the land, the structure through which you invest and your tax position in your own country. Your own lawyer and tax advisor should review each of them.
The team behind the projects
The team behind ON Circle has spent 30 years building department stores, fashion and concept stores, hotels, restaurants and arenas. It sources furniture and materials from more than 50 factories worldwide and works with a Milan-trained interior architect active in Andratx and Son Vida, and with a handful of the island’s best builders. A local network that gets permits done and 17 years on the islands complete the picture. That experience does not remove risk. It makes risk visible and manageable.
How a project is presented to members
Every project in the circle comes with a members’ exposé that is meant to be read slowly. It sets out the plot and its title, the status of the licence, the plans, a budget broken down by trade, the builders involved, the schedule and the planned exit. Scenarios show what might happen under different assumptions, including slower sales or higher costs. You can ask questions in writing and take the time you need to have your own lawyer and tax advisor review everything. A project that cannot stand up to that kind of reading is not one we would put in front of members.
Joining as an investor
ON Circle is a private, application-only circle for off-market homes, land and new projects on Mallorca, Ibiza and Menorca. Every member is verified; full exposés are shared under NDA and only with members. Oliver Nikoleit reads every application personally and answers in writing within 72 hours, without calls. The Founding Circle has 99 seats; each founding member may invite two people.
A good project shows its risks as clearly as its upside. Ask to see both.
Nothing on this page is investment advice.