Since the Spanish financial crisis started in 2008 and which has already lasted five years, it is a fact that the real estate market in Mallorca has become more stable in the last two years. There has been a growing demand at the luxury end of the market, though this cannot be said of the other end of the spectrum. It is certainly excellent news especially for anyone who owns a good beachfront or coastal property as the market here has increased up to 3-5% in recent years. Generally, people are looking for family houses with privacy, great views and, of course, private swimming pools.
“Balearic Properties have houses for sale all round Mallorca, but we specialise in properties which are usually close to fine restaurants and good shopping facilities. Mallorca has never been short of this type of property anywhere, least not in the north and southwest of the island where our main focus is”, says Antonio Fuster, director of Balearic Properties in Pollença.
Right now, for example, on the privileged mountainside plot of Gotmar (Port of Pollença) they have an exclusive four-bedroom, two-storey modern villa for sale with private swimming pool and garden area priced at 1.45m €. The whole façade has been designed to enjoy the outstanding views of the Tramuntana mountain range and over the Port of Pollença. Among the best features this minimalist house offers, you can find a Bulthaup kitchen, domotic regulated light controls, under floor heating, integrated air conditioning or Italian bathroom faucets. Then they also have a large, brand new house in s’Obac, a selected residential area close to the village of Pollensa and its golf course, priced at 675,000€. This single storey villa with high ceilings and spacious accommodation comprises a generous living-dining room with a completely fitted American kitchen, three double bedrooms each with bathrooms en suite. The floor-to-ceiling sliding glass doors provide nice views to the pool and garden, which is also very family-friendly with a large lawn area. Potential investors would like to know that both these properties make perfect second homes and also are highly rentable as holiday accommodations. There are mnore than 3000 holiday villas in Mallorca fully booked during the summer season, therefore renting your mallorcan villa will guarantee yout investment. Balearic Properties’ client base tends towards mortgage-free buyers with disposable income who are nevertheless looking for value for money. At the same time, owners of the more prestigious properties are not selling because they have to. There are no bargains here, although less attractive, sometimes commercial properties can be cheaper, as of course are repossessions. Who are these clients? The vast majority right now are British (60%), with around 24% German, but they also have many Scandinavian clients and one or two Spanish, Australian and South African ones. And it is worth mentioning that at the moment, the Spanish government is keen to offer incentives to non-European citizens buying property over here. In particular, they are making it much easier to obtain Spanish residency and a NIE number (foreigner’s tax identification number) for those who spend more than 400,000 € on a residence in this country. This is very helpful to clients from non-European markets where there has been little or no demand at all until very recently, such as the cases of Russia and China. Regarding economics, it can be said that banks are finally recovering. Both Spanish banks and international institutions with bases in Spain are now able to lend up to 60 or 70% of the cost of properties as second homes, according to circumstances, of course. However, there is also another alternative. It is possible to take over an existing mortgage on a property, which usually results in lower interest payments and you can also avoid some costs associated with the purchase.
“With the market picking up and prices beginning to rise, this is definitely a very good moment to think about buying in the Balearic Islands” adds Fuster.