What is the current stability of the real estate market?
There is currently a shortage of supply compared to demand on the real estate market in Mallorca. Reasons for this include, for example, that some owners take their properties off the market in order to make more speculative profits at a later date. However, the real estate market on Mallorca is considered a stable real estate market due to the island's attractive location and high demand.
How are property prices developing in Mallorca?
Mallorca is considered a very safe haven for property purchases. According to a study by the Center for Real Estate Studies (CRES), the so-called real estate bubble poses no danger, despite the average annual growth of more than five percent since 2015. Real estate prices have risen in good locations and promise long-term positive development in the future. With regard to inflation, it can be mentioned that this is a crucial reason to think about buying a property now. Buying a property is an investment for life and is characterized by high value stability with the potential to increase in value. When it comes to price developments, it can be summarized once again that prices and demand are going up. Mallorca is considered crisis-proof in the industry as it is a popular holiday and life destination for many people in Europe and the world. The slight downturn due to the corona pandemic was also overcome well after a slight downturn in 2020. In 2021, record revenues were achieved again from property sales on the island.
I would like to use my property as a holiday rental
To rent out your house or apartment to vacationers, you must already be registered Balearic Islands Government Ministry of Tourism (Conselleria de Innovación, Investigación y Turismo) has a permit. If this is already available, it can continue to be used despite the government's restrictions. If there is no license for this property, you must note that the local government has initially frozen the issuing of new licenses until 2026.
Why is Mallorca worth investing in?
In addition to the attractive real estate market, Mallorca's advantages include the quick and easy accessibility of the island by plane from all over Europe. In addition, the wonderful nature offers fabulous beaches as well as 300 days of sunshine a year, all the prerequisites for living on the island long-term or all year round. As a family, your children have access to very good international schools, while a first-class internet connection allows you to work and live comfortably. The island also scores points with a modern healthcare system, good transport connections and countless golf courses and marinas. In addition, Mallorca offers countless breathtaking views in the mild spring, autumn and winter months Hiking routes and bike tours at. Accordingly, the island is not just a summer paradise, but truly a paradise all year round.
What factors determine the price of a property?
- Position: On the one hand, the location is a decisive factor when evaluating the price. Is it near the sea and does it have a sea view? And which part of the island is it in?
- Property: How big is the property? Do I have direct neighbors?
- Licenses: Are licenses available? Have all legalities been checked and does the property have a current holiday rental license?
- pool: How big is the pool, is it legal?
- Building structure: What does the substance of the property look like? Is she wet? Do you have uninvited guests, such as Woodworms, found your home? What about the electricity and water supply?
I'm torn between a new construction project or a property conversion, what do you think?
I think some of my customers feel this way 😀 You have to know that it has become more difficult to build new buildings on the island, but not impossible. What is this to say, you need time and patience. Various applications must be submitted, which usually take several months to process. We already have the licenses and permits for some of our properties and are practically in the starting blocks. However, if you buy a property without a license and the approvals are pending, you will need time and patience. In addition, the state government has restricted the approval of new construction projects, which means they cannot be built everywhere and no matter how. I would be happy to advise you in more detail during an initial consultation.
Are you looking for a property with a current license? This way
When renovating or renovating, it depends on what needs to be changed. Of course, permits must also be obtained for this. However, these are mostly processed more quickly and you can start implementing the project more quickly.
In addition, renovation offers some advantages in terms of investment. This means you can purchase an aging property and sell it again with a larger profit margin. From old to new, so to speak 🙂
Are you looking for a renovation project with potential? This way
For further questions report Feel free to contact us at any time. I look forward to hearing from you and together we will realize your dream home on Mallorca.