Spain Info May: Carpe Diem! (Seize the day, Make the most of the present time)
...is inspired by the current Special Mallorca issue of the magazine BELLEVUE, (the largest German real estate magazine in Europe) and also by the previous issue on the real estate situation on the Costa Blanca. I would like to use the release of these last two editions to give you an up-to-date market snapshot now that travel restrictions have been eased more and more since Easter,and many of you have also had to cancel your property tours on the mainland and the Balearic Islands.
So here are extracts from the magazine BELLEVUE on the real estate situation on the Costa Blanca and Mallorca.
The Costa Blanca, the Costa del Sol and the Balearic Islands remain the largest markets for second homes in Spain, regardless of the nationality of the buyer.
During the year 2020 with the pandemic, tourism in Spain has unfortunately been hit hard.
Instead of the expected 14 million tourists, only 1.7 million visitors have visited Spain.
In June, the month of lockdown, the tourism dropped by an incredible 97%!
The real estate sector, on the other hand, was much less affected. Indeed, many real estate developers have maintained their turnover, especially last summer.
Then, with the new lockdown in the fall, travel became more and more difficult and making it almost impossible to visit real estate in Spain. But now, after a long winter, the desire for sunshine, relaxation and fun in the southern sun is growing (although the pandemic is not yet completely over).
Many people amongst us have realized the importance of "Carpe Diem". Working from home is increasingly a new reality for many people and especially has the advantage of being able to be done anywhere in the world.
Real estate developers have also adapted to this new way of life: virtual tours, 3-D tours and zoom calls have allowed buyers to make the selection of properties of interest, take the virtual tour of these properties and finally make their dream a reality with the purchase of a home in Spain.
While Germans continue to dominate the property market as buyers in Mallorca (followed by British and Scandinavians), on the Costa Blanca these are mainly Belgians, Dutch and Scandinavians and, recently, increasingly, more buyers from Poland, Switzerland and Austrial.
(The brightly coloured façades in Villajoyosa - picture from Denis Doukhan on Pixabay)
On the Costa Blanca and Mallorca, demand is still concentrated on properties close to the sea and also connected to tourist centers. For many, it is also important that the apartment or the holiday home can be rented easily. Unfortunately, this remains problematic, especially in Mallorca. In and around Palma, homes (due in part to the Airbnb effect) are currently no longer officially rented (i.e. with a license) and a 5-year ban applies to other new buildings. In a large part of the Costa Blanca (and also in Andalusia) the situation with the rental of real estate is less problematic. Due to this fact but also because of the ease of movement, customers formerly interested in acquiring a property in Mallorca are now turning more and more to the mainland.
It should be noted that although the number of purchase transactions in the first three quarters of 2020 has decreased significantly (by 40% in the tourist sectors of Torrevieja and Benidorm), the regions of Denia, Javea, Moraira, Calpe, Finestrat, Sierra Cortina, Alicante and surrounding areas, as well as Orihuela Costa (south of Torrevieja) remain equally popular with buyers.
In these areas a good variety of new real estate is still available: apartments starting at € 180,000, townhouses starting at € 190,000, and single-family homes starting at € 230,000. Developers, on the other hand, barely lowered their prices. Here is a quote from a large Spanish construction company: “Why should we lower prices, we are facing a health crisis and not an economic crisis. Will there be more customers if I give a 10? % reduction? No. ". Still, there is room for negotiation for customers: many companies are now more willing to offer extras or are already offering special promotions.
Unlike the new real estate market, the second hand property market was quieter in 2020. This may be due to the fact that new real estate is sometimes at similar prices and new construction is technically at the cutting edge of technology. In addition, new apartment buildings offer equipment such as fitness rooms, parking spaces in the basement, indoor swimming pools, etc.) and the regulations on thermal insulation have been further improved by new building regulations in September 2020.
(The cathedral in Palma de Mallorca - picture from Nicole Pankalla on Pixabay)
In Mallorca, the most popular regions still are, ( but not only) the southwest of the island (between Palma, Andratx, Santa Ponsa and Magaluf), but also the northeast (in the regions around Artá and Cala Ratjada), the east (with Portocolom, Cala D'Or and Santanyí) and the south around the long sandy beach of Es Trenc (Sa Rapita).
It is also worth mentioning that now real estate has a fairly rapid resale turnover. While real estate elsewhere in Europe is relisted after an average of 20 to 30 years, many properties in Mallorca or on the mainland find their way back to the market after only a few years (acquisition as an investment or for personal use and resold at a profit).
We hope that this information will help you with the search for your dream property, to do this we also want to offer you today some interesting properties from our extensive listing.
See you soon, on the Costa Blanca, Mallorca or Andalusia!
Sincerely from Spain
Jan Hannemann and the Su Casita team
