Mallorca Property Market Update Spring 2015

Luxury penthouse apartments for sale in Palma de Mallorca

Luxury penthouse apartments for sale in Palma de Mallorca

While official statistics still offer only modest support to a suggested “lift off” of the Mallorca property market, perhaps because a lot of the figures lag the market, anecdotal evidence from a number of leading estate agency chains suggest that Spring 2015 was not only a favourite holiday spot this Easter, with visitor figures up overall by 7.17%, representing a further 495,000 visitors over this time last year, but residential real estate sales have also posted very encouraging levels.

Palma Sea View Apartments for sale

Palma Sea View Apartments for sale

Figures for the first quarter of 2015 point to the best start to a year in over 10 years with a 20% increase in properties sold over the same period last year. A range of properties have been sold but perhaps the biggest demand has come for new developments, apartments and plots especially from international buyers.

This seems to be supported by the Spanish Government’s Ministerio de Fomento figures which highlight that the volume of residential real estate sales made to foreign purchasers, for Mallorca and the wider Balearics Islands totalled 976€ million in 2014. Compare that to the figure of 494€ million in 2009.

With the Mallorca and Balearic Island’s economy posting real growth for the first time in several years and expected growth of circa 2.4% in 2015, there is every chance that this positive trend will continue with local demand joining that which has been coming from abroad.

Portixol Palma Sea View Apartments

Portixol Palma Sea View Apartments

Good evidence of the strength of the recovery, and the fact that this is no longer just “words of encouragement”, come from the actual sales figures across a series of top new development schemes in various parts of the Island.

In the increasingly fashionable area of Palma, Portixol Harbour, the Marina Plaza 2, scheduled for completion this summer has seen sales of 13 of the 32 units with values of between 1.2€ million and 3€ million. Buyers include German, British, Swedish, Swiss and Spanish.

Further along the coast the new Elements Portals development in the Puerto Portals marina area has seen 70% of the 31 residences reserved since the launch 5 weeks ago. On top of that one penthouse apartment has apparently sold for a record price of 6.5€ million. Interestingly over 30% of the buyers, are existing investors and already own a home on the island. Buyers are in the main Germans, British and Scandinavians

Camp de Mar Sea View Apartments for sale

Camp de Mar Sea View Apartments for sale

Again moving down the coast to Camp de Mar there is the Torre de Mar beachfront development of 29 apartments with a third of the development already sold/reserved. Close to the golf course and Puerto Andratx prices range, for the remaining 2 -3 bedroom apartments, from: 725,000 Euros to 1.5M Euros.

Similarly encouraging figures have come out of other developments, in different parts of Mallorca, including:

New build Santa Ponsa apartments Mallorca

Front line sea view apartments for sale in North Mallorca

Well priced beach access apartments for sale near Porto Cristo Mallorca

New build apartments for sale in Palma de Mallorca

Luxury Port Andratx Estate for Sale – New Puerto Andratx Luxury Villa for Sale

Camp de Mar Andratx new build houses for sale

Luxury new build front line apartments for sale in Alcudia (for more information regarding this project see Front Line Luxury Apartments for Sale in Alcudia Mallorca)

If you are interested in any of these developments please contact us

Palma De Mallorca best place to live and buy property in the world! (according to the Sunday Times newspaper)

Palma De Mallorca property for sale

Palma De Mallorca property for sale

On Friday I wrote that “Palma de Mallorca has become one of Europe’s most attractive and desirable locations both to visit and live” (see Luxury Palma de Mallorca Penthouse – Atic Apartment for Sale – Santa Catalina Palma Apartment for sale) so today I must sincerely apologise to the city for undercooking the “praises”. Over the weekend the Sunday Times newspaper voted Palma de Mallorca the 2015 winner of the best city in the world to live and visit!!

In the words of the newspaper “our winner is Palma, one of the most picturesque cities in Spain. We believe it has everything” Amongst the qualities highlighted are the climate, the beauty of it’s Old Town, the quality of the restaurants and beaches. Palma is compared to Barcelona for it’s similar characteristics of attractive historic quarter, beaches, manageable size with everything walking distance and a great climate. ” A pocket handkerchief sized city that has it all!”, with the additional bonus that it is located in a very attractive and desirable Island, is the conclusion.

The Sunday Times adds that the size of Mallorca, with it’s very diverse scenery and attractions, with everything less than an hours drive from Palma, is a huge plus for visitors and buyers of property. The airport is 10 minutes from the city centre with daily cheap flights all year around such that the city has become a “dormitory” type location for many British and Europeans that commute regularly to the major capital cities of the continent.

Palma CityInterestingly the newspaper classified each of the 50 cities on their table as to whether it was best rent or buy a property and, for Palma, the conclusion was that buying a property was best, highlighting the historical centre  and traditional properties in areas such as Santa Catalina and Portixol.

The other attractions highlighted were the sea and sailing with the huge port and marina and easy access to Puerto Portals and Port Adriano a short drive away, for lovers of sailing; the wonderful Boutique Hotels; top shopping; historic areas and buildinds like La Llonja, El Paseo de Born, Mercado de Olivar and the Joan Miro Foundation; and last but not least the increasing number of top restaurants including Simply Fosh, Hotel Cort, De Tokio a Lima and the Bodega Gaudeix  .

 If you are looking to purchase a property in Mallorca we, at Novi Property Mallorca, would be delighted to help. We are Chartered Surveyors and specialist property finders so are ideally placed to help you identify the best areas to look at and to locate the most attractive properties. We are able to access properties from right across the market, from those offered by estate agents and developers to those being marketed privately or through traditional “corredores” (intermediaries that still operate in some villages and areas of the Island). We will arrange all viewings, provide all important market and valuation advice and, when the time comes, undertake all the negotiations and help coordinate the Due Diligence process with your chosen lawyers.

Important note: Our Novi Property Mallorca web site showcases well over 1,000 properties that are currently on the market in Mallorca. This is not in any way an exhaustive list of what we are able to offer, rather it is a selection to give you a flavour of what is available. Once we have identified our clients particular requirements we will undertake an exhaustive search, identifying all the best opportunities for your consideration. In most cases this all comes at no cost to you as buyers. For the latest news and views regarding the Mallorca Property Market click here

Luxury Palma de Mallorca Penthouse – Atic Apartment for Sale – Santa Catalina Palma Apartment for sale

Santa Catalina Atic Apartment for sale

Santa Catalina Atic Apartment for sale

Palma de Mallorca has become one of Europe’s most attractive and desirable locations both to visit and live. From it’s beautiful and extensive Old Town; it’s new “trendy” Santa Catalina village quarter; the sea front old fishing areas of Portixol and Molinar; to spectacular Paseo Maritimo with views over the harbour and marina, Palma has everything one would look for in an urban area and all a stones throw one from another! Leave the car and just stroll, cycle or skate your way around all these areas, soaking up the different atmospheres!

We all have split personalities (in the nicest sense of the word of course!!). At one moment we might want sophistication, then “chill out”, followed by turning the clock back and being a “beach bum”! Palma living offers you all this so wake up and choose your personality!!

So what is out there? Over the next few weeks we will bring you a variety of the best and most interesting properties for sale in Palma. Some you will find our web site, many others not, so you will need to contact us for more details and a full selection of what is available.

Since I was inspired to pen this blog article when I stunning turn key penthouse in the Santa Catalina area of Palma came across my desk, where better to start than there! The Santa Catalina quarter is one the most interesting areas in Palma. With centuries of history, the ancient fishing village still conserves its original layout and examples of popular architecture, while having lots of restaurants and trendy shops. A lively, charming area only 8 minutes stroll from the city centre including

Santa Catalina Atic Apartment Roof Terrace

Santa Catalina Atic Apartment Roof Terrace

the Old Town. It is certainly therefore an alternative option for those set on something in the historical centre.

And the property? It is a very spacious light and airy penthouse located on the 2nd floor of a beautiful traditional house and comprises 120m2 living area divided in 2 bedrooms with 2 bathrooms ( 1 en suite ) and a big open living area with a south facing terrace on the same level. The kitchen is connected to the loft-style living space and with direct access to the terrace. The 100m2 roof terrace is connected by interior stairs. A summer kitchen, outside shower, dinning area and sunbathing area, offer all possibilities to fully enjoy the Mediterranean lifestyle. A modern living space, all open, with a maximum of comfort .The project will be delivered as a turn key property.

For more information please contact us

Santa Catalina Atic Apartment Layout

If you are looking to purchase a property in Mallorca we, at Novi Property Mallorca, would be delighted to help. We are Chartered Surveyors and specialist property finders so are ideally placed to help you identify the best areas to look at and to locate the most attractive properties. We are able to access properties from right across the market, from those offered by estate agents and developers to those being marketed privately or through traditional “corredores” (intermediaries that still operate in some villages and areas of the Island). We will arrange all viewings, provide all important market and valuation advice and, when the time comes, undertake all the negotiations and help coordinate the Due Diligence process with your chosen lawyers.

Important note: Our Novi Property Mallorca web site showcases well over 1,000 properties that are currently on the market in Mallorca. This is not in any way an exhaustive list of what we are able to offer, rather it is a selection to give you a flavour of what is available. Once we have identified our clients particular requirements we will undertake an exhaustive search, identifying all the best opportunities for your consideration. In most cases this all comes at no cost to you as buyers. For the latest news and views regarding the Mallorca Property Market click here

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

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