On Mallorca purchase grow prices and Rents for real estate for years. This has provoked a broker boom. But not everything runs smoothly.
In the centre of Palma is to sell clear at a glance, what is currently the main business of the island: “Italian ice-cream, and houses,” says the resident tourism expert Jordi Villart. In some streets four estate agents offices on 150 meters, all seem to be unknown, but the term “Property” in the company name. “Ice, you can use the enormous heat well, but many of the brokers will have to close,” the German lawyer Tim Wirth, for sure, for many German celebrities purchase contracts on the island concludes. Because the cake is actually divided between the five largest brokers. They all are agree that 2017 was an absolute record year, but a lot of space, it is no longer on the market.
“There are fewer and fewer objects, and the buyers are always informed. You ask very much. The many of the new agents can usually keep up with neither the Expertise, nor do they have the financial staying power,” believes Javier Ariola, President of sales for Ibiza and Mallorca at the oldest realtor on the island, Kühn & Partner. According to the Spanish estimate company Tinsa, it takes almost nine months to sell in the Balearic Islands a property. The price this year, Tinsa, estimates rise to ten per cent, in Palma, where currently, all want to go, is this the case of almost 13 percent.
The upward Trend is not good for everyone
But Ariola is the perfect example of how a two-edged sword can be a success in Mallorca. As a sales chief of Kühn & Partner since 2015 rising prices helped him to stabilize his business to the absolute top dogs of Engel & Völkers. On the other hand, he sees his life partner, who works in health care, such as the German Run in Mallorca and Ibiza, leading to a work emergency, on the Balearic Islands, under which he suffers himself: “nurses are not able to afford the low salaries, the Rent and Hotels need to accommodate their staff in-house, because the apartments are too expensive and there in the high season there is also no free apartments.”
The Dilemma between the traditionally European comparison of low Spanish wages and in comparison with the high cost of living is nowhere as noticeable as on Mallorca. The average salary is here, according to official figures, just 1200 Euro gross. House prices have risen, according to data from Porta Mallorquina Real Estate in the past three years, in the outskirts of Palma to 54 percent and in the city of just under 29 per cent. Rents have developed in parallel: “For a 45 square meter apartment in Palma you want to have 1000 Euro rent. Because I’m goin ‘ in, I rented my apartment there for under market price,” says Ariola. Many Local soft the rest of the surroundings, to be able to still reasonably affordable life. For seasonal workers is also not in question. “This new Situation in the summer to a huge traffic chaos in and around Palma,” says Ralf game bird, managing Director of Porta Mallorquina Real Estate, experienced the every day.
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Palma de Mallorca: for Airbnb
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Palma de Mallorca: for Airbnb
Bed offer in Mallorca is reduced
Although the Balearic hotel lobby announced that in the first half of 2018, the bookings, to five percent in comparison to the previous year, but that was also a record year: 10.3 million people visited in 2017, the island, like the Spanish tourist Board announced that 4.5 million of them being German. “The locals know that they financially depend on this business, but the protests are growing against the negative effects of the many cruise ships which bring in the summer thousands of people every day to Palma,” says Villart.
The Balearic government has drawn up a year ago, the emergency brake. She has not doubled, only the city tax of three euros per day, but also a Moratorium for the cottage rental is to be imposed. This is running on 1. August, but even then will not be extended to all existing licences automatically. New licenses are only awarded to certain rural, not-yet-saturated places. Palma leaves no holiday rentals and saturated coastal areas, where nothing works, apply, Palma Nova, Magaluf, Santa Ponça, Peguera, as well as the coastal towns of Llucmajor, S’arenal de Llucmajor, Bellavista, Cala Blava and Son veri Nou. The new construction boom in Mallorca is also excluded from a private holiday rental. “According to the new tourist law, the tourist use is allowed only in properties that are older than ten years,” warns the Majorca-based lawyer, Marcos Vera stone.
Finca of Dr. Bassem Khalili in Binissalem
The 78jährige Iranians Bassem Khalili belongs to those who are allowed to rent, but had to go with the sale price for his eight years ago purchased the Finca is enormous: “I am trying since one and a half years to sell the small guest house. Actually, I wanted to Euro over four million, there are now three”. Khalili bought the land 18 years ago for 600,000 euros. At the time, he was 60 years old, still had the energy: “It took five years, until I had all the permits”. He planted 6000 trees, shrubs and flowers, laid water pipes, not and rented finally the guest house. Now he has enough of the country. He wants to go to Palma: “I chose to be there, an apartment.” To Germany, where he has previously practiced as a doctor, the Iranians, Mallorca has become his home: “I want to die here.” If one of the interested parties strikes at his Finca, that’s now, then his Plan goes on: “I’m too old to run a guest house.”