The Post Lockdown Real Estate Market on Mallorca
The Mallorca real estate market defies Corona
Living with the coronavirus has made people think carefully about their respective life situation. In addition to worries about the family and the health of all loved ones, there was another one: namely, to what extent the crisis could affect life financially. What will become of the private assets, the property in Mallorca etc., which investments should one deal with in the future and anyhow, how will the economy and the real estate market in general develop and recover. Important questions to which people need a reliable answer, a difficult situation, since no one can say with certainty how the unpredictable virus will behave. However, most governments have agreed that there will be no further lockdowns.
Now that the stringent measures and restrictions have more or less been lifted, taking the right action and making a far-sighted assessment of the situation are all the more important factors in order to calm people and the real estate market. Those who had wisely invested in a Mallorca property or who intend to buy a finca or villa for sale in Mallorca can breathe a sigh of relief: Mallorca has coped and still is coping with this crisis fantastically; the real estate market has not suffered any damage. On the contrary, the value of a property on Mallorca is on the increase, properties on the island are absolutely crisis-proof.
You can rely on a Mallorca property
There are various reasons for this: on one hand, Spain has received massive financial relief from the EU and ESM, with almost no conditions attached. Europe has learned from the last serious crisis. So, while money remains relatively cheap, real estate is expensive, especially real estate in top locations and buying a property in Mallorca is definitely at the very top of the location list. Mallorca is more popular than ever and there is already a shortage of building plots and real estate on the island.
In Europe there is hardly anything comparable to a property on Mallorca: the dream location surrounded by beautiful nature with a view over the impressive mountain landscape or the shimmering Mediterranean sea, everything within easy reach of the pulsating, international capital Palma with the mega airport. And anyhow, everything is easy to reach on Mallorca thanks to the excellent road network another reason why the price tag of luxury villas for sale on Mallorca can easily be a few million.
Management on Mallorca is performing well
The corona crisis has also clearly shown that medical care is working fantastically on Mallorca and the hospitals here are rightly at the forefront in Europe because they do a great job. Thanks to the committed doctors and the hospital staff, the coronavirus was well under control here on Mallorca, and the Balearic government has also proven itself to have a good crisis management system. The supply both in the hospitals and in general, e.g. with food, was always guaranteed. Hospital staff and beds were increased, the connection to the mainland was rigorously controlled and authorities appealed to the islanders' individual feeling of responsibility.
The consulates here on the island could be reached at any time and the people always felt they were well advised, they had perfect contact and someone to turn to in times of strict restrictions and great uncertainties.
As everywhere else, Mallorca also had to deal with this unprecedented situation, and those responsible on the island made it very clear that the crisis could be overcome and that also paid off on the real estate market. No artificial real estate bubble has been formed, as previously during a crisis, on the contrary, prices have risen steadily and not as drastically as before the 2008 crisis.
Mallorca is dependent on the air traffic, so it could never be stopped completely, the island never completely isolated itself and acted very sensibly and flexibly during the lockdown. Air traffic to neighbouring European countries was restricted, but there were actually always enough flights say to Germany or the UK, even during months when the toughest restrictions were in place. In Mallorca, air traffic can be easily reduced, only to get back easily to the "normal" air traffic situation once again. Another indication of the competent flexibility on the island, a further incentive to invest in a Mallorca property for sale, they can absolutely weather any crisis.
What is in store in the future?
Nobody really knows that for certain, but instead of speculating, this is very certain: You are very well advised to buy a Mallorca villa or apartment or to keep your property and not to sell it hectically and/or for no reason. And to avoid possible future increases in inheritance tax, you should already consider transferring the Mallorca property to your children, especially if the tax exemptions have not been used up in the case of a gift. An investment in a property in Mallorca is always recommended, those owners who have taken this step are delighted to have made this decision. Buying a Mallorca property is a smart and solid investment, the value of the property will increase over the years.
Owners of building plots in Mallorca should now seriously start with the construction work, and thus increase the investment. Construction projects in urban areas struggle with fewer requirements than those in rural areas, where construction is becoming increasingly difficult. You should get advice from building pros regarding the rules of the authorities in the respective island regions, which can be differ depending upon where you want to build. A high added value is achieved through the development.
Last not least, you can clearly see that in spite of all the restrictions and uncertainties this virus attack has triggered, the property market on Mallorca has developed positively and has again proven its resistance to crisis. In these uncertain times, buying a villa or finca for sale on Mallorca has not lost its value, on the contrary, it has never been more popular to buy a Mallorca property. A question of lifestyle, or investment - the reason why you would buy this finca, shown above, is a personal decision, but regardless of the reasons, the financial profit is assured.