Emblematic Old Town Palma Mansion Sold to British Investors

Can Puig Palma de Mallorca

Can Puig Palma de Mallorca

Can Puig in one of Palma de Mallorca’s best streets, the Passeo de Born has been sold by the Banco Sabadell to a group of British investors according to press reports the week. This follows hot on the heels of other sales to foreign investors both in Palma and other areas of Mallorca, a clear sign of confidence in the Mallorca property market and the strong Mallorca “brand”.

Reports suggest that Can Puig will be refurbished to create 5 luxury apartments while the ground floor retail will be retained.

In the Plaza de España, German investors have purchased a former bank headquarters building and will be refurbishing it to house the supermarket chain, Muller.

Other deals are being looked at in other areas of the Island, including Alcudia, as investors look to snap up opportunities before the market gains some upwards momentum.

For further information please contact us

If you are interested in acquiring an investment property in Mallorca look at the Novi Property Mallorca web site for a selection of ideas (many more are available, and we can access, if you contact us)

 

 

 

Holiday Property Rentals in Mallorca – The Legal Framework for Letting Legally

 

Holiday rentals in Mallorca

Holiday rentals in Mallorca

There has been a great deal of confusion of late regarding the letting of property in Mallorca to holidaymakers ie short term weekly type tenancies (not least via the typical sensationalist approach of the Daily Mail!!) and the purpose of this article is to provide some background and assurances as to what is the current legal framework.

The key starting point is to look at the legislation, as it is here where we will find the answers to these concerns and the approach required for each type of lease. Basically there are two key laws and definitions, namely – seasonal letting (regulated by the national Urban Rental Act) and holiday letting (regulated by Act 8/2012 Balearic Tourism Act)

A second key principle is that since rights of ownership can not be restricted, anybody is legally allowed to let their property for any period of time ie for 1 day, 1 month, 1 year etc, provided one follows the approaches permitted under one of these two aforementioned Laws.

The two key thing about a seasonal letting is that there should be no holiday services offered as part of the letting, or “available” for offer, and also the marketing must not be done via tourism channels (web sites, agencies etc). So what does that mean in practice? Regarding services here are a few that can no be offered where a seasonal letting is intended – collection from the airport, periodic cleaning during the tenant’s stay, laundry service for bed and table linen, replacement of household utensils, 24-hour telephone service, etc. Normal repairs and maintenance are allowed.

With regards to marketing the situation is a bit vague but I have read that the following sources would not be expected to infringe the  need to avoid “no tourism channels” – estate agents that under their operating business licences are allowed to offer and mediate seasonal lettings; web sites / operators such as Owners Direct, Homeholidays,  Homeway and FEWO.

The key is to ensure that there is a lease document that reiterates that no holiday services will be offered, that it is a seasonal letting and the letting is governed by the Urban Rental Act (ley de arrendamientos urbanos). The advert should also make this clear and be “consistent” with what is said in the lease document.

One interesting side note is the situation in apartment complexes where Owner Community Associations do not allow seasonal lettings. In reality is not legally enforceable because, based on the principle that, the rights of ownership can not be restricted, so you could fly in the face of your neighbours and let anyway (whether in practice that is advisable, for the sake of harmonious living and sharing of community spaces etc, is another matter!!!)

So what about those who wish to offer holiday lettings? First and foremost the law only envisages that such lettings can be offered in houses (detached or semi detached) so apartments and terraced houses are “out”. Furthermore the properties should have no more than 6 bedrooms and a maximum 12 beds; and have at least 1 bathroom for every 3 beds (not rooms). The lettings should also only be for a maximum period of 2 months and, of course, in this case, a Licence is officially required.

So all in all the situation is not as “bad” as is being made out in the media! It just requires a bit of thought and planning to decide what sort of letting you want to do / can do, and then to ensure one adopts the appropriate procedures. Personally I would always recommend you talk with your lawyer prior to starting, just to check on your particular circumstances, but with care there should be no problems.

For further information please contact us

If you are interested in acquiring an investment property in Mallorca look at the Novi Property Mallorca web site for a selection of ideas (many more are available, and we can access, if you contact us)

 

 

Luxury Mallorca Property Market 2014

Mallorca luxury real estate

Mallorca luxury real estate

An interesting article, in El Mundo daily newspaper, recently highlighted the robust nature of the luxury property market in Mallorca (defined by them as properties with values in excess of 1€ million) not only now, as the market turns the corner, but throughout the crisis. Throughout this period, ie since 2009, Mallorca and the wider Balearic Islands have been the region of Spain with highest number of sales in this +1€ million category. In most cases these were sales to foreign buyers, an indication of the strength of the Mallorca and Balearic “brand” amongst international residential property purchasers.

According to data from Notaries in the Islands, in the first quarter of 2014 there have been 50 sales where the purchase price has been in excess of 1€ million, three times more than a year ago when only 17 sales were recorded. Furthermore these 50 transactions were more than a third of the total number of +1€ million value transactions (144) in Spain. The second and third highest regions of Spain were Andalucía (35) and Cataluña (24).

These statistics tie in with the anecdotal evidence coming from estate agents in Mallorca who have for sometime been commenting on the improving sales levels, particularly at the higher end of the market. Perhaps even more interestingly however are the statistics concerning the actual prices being paid for these luxury Mallorca properties which also appear to be on a steeply rising curve. Again according to the Notaries the recorded price per m2 for these sales has risen by 25% and now stand at 5,491€m2 compared to 4,378€m2 a year earlier. This value is higher than anywhere else in Spain and stands some 25% higher than the national average.

Interestingly, the average value of transactions of over 1€ million, has dropped from approximately 2€ million last year to circa 1.7€ million today. As the average size of the houses has also fallen this seems to indicate that not only are the super wealthy buying but that there is a trickle down effect, all be it still at the relatively high end of the market.

In terms of the total number of 1€ million plus value sales this has been growing steadily throughout the crisis, rising from 125 operations in 20017 to 182 last year (2013), including one sale in excess of 9€ million. If the sales in the first quarter are three times more than in 2013, all seems to indicate that this trend is continuing, with ever increasing number of foreign buyers investing in the Mallorca luxury residential property market.

If you are interested in purchasing and would like the help of a specialist valuer and professional Mallorca property finder do not hesitate to contact us

 

 

Mallorca Property Prices 2014 – Getting behind the Mallorca property market

Luxury Villas for sale in Pollensa

Luxury Villas for sale in Pollensa

Last month we published an article regarding the latest average residential property prices in Mallorca details of which can be found here (Mallorca property prices April 2014). But while such figures offer a good indication of overall market trends, they aren’t always helpful when it comes to considering values in a particular town or area, which may be very different to the “average”.
This is also the case when considering the values of what could be regarded as the mid to high end properties largely bought by foreign buyers. Here even the best deals will often be at levels considerably above this “average figure” for Mallorca as a whole.
As a example here are some values of higher quality properties in Mallorca, ranging from the lower to the higher levels. As with average prices, these figures should not be used in isolation, when considering the value of any particular individual property, rather should be used only as an initial guide when assessing underlying value of a specific property.
Palma Old Town - from 2,500€ per m2 up to 8,000€ per m2. Values will vary considerably dependent on the particular district and location and whether the property has special characteristics such as extensive outdoor terraces, open views (including sea) etc
South West (Andratx, Bendinat, Santa Ponsa etc) – from 2,500€ per m2 up to 25,000€ per m2. The lower end will apply to non sea view apartments in secondary locations such as Palmanova while higher end associated with the very best quality front line villas in say Bendinat and Port Andratx.
West Coast (Soller, Deia, Valldemossa etc) – from 2,000€ per m2 up to 18,000€ per m2. Lower end will be smaller older apartments without sea views in say Port of Soller and the higher end will apply to top quality fincas in, say, Deia with stunning sea views.
North (including Pollensa and Alcudia) – from 1.900€ per m2 and 7,500€ per m2. The lower values will apply to secondary older properties in the Ports of Alcudia and Pollensa – particularly the former, while the higher values applying to the best rural fincas around Pollensa old town or front line villas or apartments in the Port of Pollensa, Barcares or Alcudia beach and Aucanada.
Central Mallorca – from 900€ per m2 up to 7,000€ per m2. The lower prices apply to older apartments in secondary villages in the central region, while the higher values to top quality fincas in areas such as Alaro, Santa Maria, Binissalem, Selva, Campanet etc
North East (including Arta, Capdeperra, Son Servera, Canyamel etc) – from 1,000€ per m2 up to 10,000€ per m2. The lower levels applying to apartments and smaller village houses in rural areas or in secondary resorts such as Cala Millor or Sa Coma, while the higher values relevant to front line villas in locations such as Cost de los Pinos, Canyamel and Font de Sa Cala
South Mallorca (including Santanyi, Cala Dor, Llucmajor etc) – from 1,800€ per m2 up to 6,800€ per m2. The lower figures applying to older second line apartments in poorer areas of say Cala Dor or secondary inland towns and resorts including Colonia San Jordi. Higher prices will apply to the best rural properties of say Santanyi and top quality front line villas of Cala Dor, Porto Petro etc
If you are looking to buy a property in Mallorca, and would like the support of a specialist Buyers Agent, that is also a valuation specialist, please contact us. We will help not only identify the best properties that meet your requirements but will also help assess the underlying value in order that all negotiations are fully informed and you buy your dream home at the most appropriate value

Luxury Property for sale in Mallorca – Luxury Mallorca Villas for sale

Luxury villa in Nova Santa Ponsa Port Adriano

Luxury villa in Nova Santa Ponsa Port Adriano

Yesterday I read an article in a reputable local newspaper (Diario de Mallorca) suggesting that while the real estate sector remains firmly in the doldrums, with even significant price adjustments failing to activate demand, the luxury property sector ie  2€ million + is holding up pretty well with strong demand and sales being achieved.

While I am an old cynic as regular readers will know, I have to admit that in this case I suspect they are right. Talking to colleagues that operate in this top end market they do confirm that there have been a steady stream of sales in locations such as Andratx, Santa Ponsa / Port Adriano, Deia, and Pollensa (Formentor). Who is buying? The Germans lead the way along with the Russians, followed by the Swiss, Swedes and , rather falling away but not yet “gone”, the British.

But what about prices? While the rich may be getting richer (and poor poorer!!) few throw the money away! That said finding a home (excuse the pun!) for your money in this world isn’t easy so while these buyers are obviously negotiating on their purchase prices, they are equally prepared to pay for top quality property in top quality locations. It is “quality” that counts not the price tag (don’t expect to dress up an average property, smack on a “luxury price tag” and expect it to sell!!). These buyers are discerning and while paying anything up to 10€ million for a home may sound capricious, in reality, just like buying Munch’s The Scream at 120 million dollars million is quite probably a good investment, so it can be argued that top quality property in top quality locations with a very limited supply side, is also a good investment in these troubled times! In that sense I have to admit that certain defined areas of Mallorca do meet that criteria and buyers are active.

If you are interested in a bespoke Property Finding Service from experienced Chartered Surveyor then please see how I can help.

To see a small selection of luxury Mallorca properties for sale click on this link.

Exclusive Property Finding Services in Mallorca with Chartered Surveyor David Novi

Mallorca Luxury Property

Mallorca Luxury Property

Why use David Novi as your sole exclusive partner for your property search in Mallorca? David is, and will be, your local partner who, applying his extensive market knowledge and over 25 years of experience as a senior Chartered Surveyor and Valuer, acting exclusively in your interest. By contracting David to be your sole exclusive partner for your Mallorca property search you will save a huge amount of time, access properties from throughout the market (from all agents, web portals, newspapers, off market / word and mouth etc) and all with the comfort of knowing you have appointed a knowlegable local partnerwho represents YOUR interests.

Luxury Mallorca living

Luxury Mallorca living

With his excellent knowledge of the market he will access on your behalf the widest range of appropriate properties that match your search criteria. Not only will you access ALL property available on the market, David will also use his market knowledge as a Chartered Surveyor and Valuer to assess where the best value lies and what is the right value / price for any property that might be of interest to you. In this way you will buy at the best possible price.

In other words you get:

· A huge time saving and avoid the high pressure sales techniques of multiple Estate Agents all trying to sell “their” properties
· A reliable, experienced and professionally qualified Mallorca property market expert acting on your behalf
· A full overview of the market both in terms of market conditions and access to properties throughout the Island
· Access to all properties available on the market and with David’s Premium Property Finding Service, a search “on the ground” opening up off market opportunities and those offered by individuals / private sellers.
· Qualified consultation with a well respected lawyer to assist with all aspects of the legal due diligence process
·A free building survey from another independent Charterded Building Surveyor (fully refunded upon purchase of a property)

Luxury villas in Mallorca

Luxury villas in Mallorca

David offers 2 Property Finding Services:

  • Standard Property Finding Service – For clients that want David to act on their behalf regarding a property search and on the whole have a clear idea of what they want and, in particular, the area / town where they want to buy. The service comes at no cost to you the buyer as David’s fees are covered by the owner or the owners agent of the eventual property purchased. Against a defined brief he will approach local agents and developers, as well as trawling through newspapers and web sites dedicated to local sales and used by private owners. From these he will put together a very wide selection of options for your consideration. A short list will be drawn up and fully accompanied viewings arranged. David will provide independent advise as to the options including all important market and valuation opinion to help inform your decisions and assist negotiations. This is a “one stop shop” approach for clients that do not want to be “accosted” by lots of different agents all trying to sell “their” properties while at the same time benefiting from the support of a Chartered Surveyors and professional valuer.
  • Premium Property Finding Service – Similar to the Standard Service but with some important key additions, including that David will search, in addition, “on the ground”, visiting areas short listed trying to unearth properties that are only marketed privately, or in a very low key way, or that may not be officially on the market but come to him through “word and mouth” enquires. Furthermore, where clients are unsure as to where they might want to locate David can arrange fully accompanied “area viewing trips”, where he will join you to look a different areas, so you get a first hand feel of whether they are right for your new home and thus a subsequent in depth property search. With this service David is paid by you the buyer although invariably the fee is covered many times over by the savings achieved in negotiating the best price without taking account of the time savings to you the client associated with all aspects of this Service.The fee comes in 2 parts, a Retainer to cover the footwork on site and any area viewing trips and a Finders Fee on successful purchase.
Luxury rural property in Mallorca

Luxury rural property in Mallorca

For a Question and Answer session about David’s Premium Property Finding service see Mallorca Property Finders

Contact David for more information

If you want to stay abreast of what is happening with the Mallorca property market why not follow David’s Mallorca Property Market Blog and get automatic updates?

Palma de Mallorca Apartment for sale in Old Town – Price Much Reduced!

 

property for sale in Palma de Mallorca

property for sale in Palma de Mallorca old town

Apartments for sale in Palma de Mallorca

Modern Apartment in Old Town Palma de Mallorca

I like this property so much that I wanted to include a few more photographs to give a flavour of the style and design of this apartment in central old town of Palma.

The apartment offers spacious accommodation either as a full time residence, holiday home or indeed a rental investment. Demand for city breaks in cities like Palma remain very strong both from the UK, German and Scandinavian markets and a property like this could offer investors an attractive income as well as long term capital growth given the reduced asking price.

For further information see Apartment for sale in Palma de Mallorca or further selections of property for sale in Mallorca from Properties International Mallorca

Palma de Mallorca property for sale

Luxury Palma apartments

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