Top Tips for Buying Property Abroad: Mallorca
Mallorca is having a bit of a moment - and not just because of a certain reality tv show.
Offering arguably the highest standard of living in the Mediterranean, well-run and well-regulated, Mallorca is renowned for its dynamic food and cultural offerings, with the historic city of Palma considered one of Europe’s most vibrant small cities.
There are over 300 days of annual sunshine, a different beach for every one of those sunny days, and easy access from London and New York. Mallorca is also celebrated by residents for its low-key lifestyle, where the rich and famous mingle casually with locals and privacy is respected. No wonder the island is a magnet for high profile personalities like Michelle Obama, Brad Pitt, Michael Douglas, Claudia Schiffer, Sir Richard Branson, Bob Geldof, Sir Andrew Lloyd Webber and the Spanish Royal Family.
For hundreds of years, the island has been a favourite of the elite, especially European royalty. But now this has gone to a new level. According to Richard Heaney, Founder & CEO of Elan Palma Property, Mallorca is becoming a haven for global wealth on a major scale, and this is impacting on property prices.
Mallorca is also a solid investment, having offered some of the best property returns over the past ten years, with price increases almost four-fold, and forecasts of 6% year on year growth over the next four years. Unusually for the region, the infrastructure of Mallorca is constantly being upgraded, and future major projects include multi-million-euro port upgrades, new roads and infrastructure. These projects catapult nearby property prices.
“Demand for property on the island continues to be consistently high and 2019 will be a testing year for buyers looking for their dream house in Mallorca”, says Richard. “With a shortage of quality stock in the premium market we have a supply and demand issue ahead of us.”
Given the speed at which values are climbing, now is the time to buy. But buying abroad can be a stressful process. Although Mallorca is transparent and well-regulated, the process can be confusing to foreign property buyers, with plenty of opportunity for misunderstandings and mistakes. After over a decade working in property in Mallorca, Richard has devised the following tips to help people secure their dream Mediterranean villa in Mallorca – and enjoy the process.
Assemble Your Team
As a CEO, you understand the value of assembling a top team on the ground. When buying a luxury villa in Mallorca, a good local lawyer and buying agent should be the key members of your team. These two individuals will be not only essential in finding the right property but will also be the people safeguarding your investment and negotiating the intricacies of the option contract on your behalf. Use only professionals you like, and trust.
Take time to understand what you want to get out of a property in Mallorca. Taking the time to establish a detailed brief will ensure you select locations on the island that will work for you. This may sound obvious, but even just a few defining factors will eliminate 80% of the island or equally open up 80% of the island.
Keep an Open Mind
Sadly, digital property search systems across the world are all equally impersonal. In the same way that these systems will send you property that is of no interest, it’s also likely they will not show you property that IS of interest. Be open to viewing property that falls outside your initial criteria. The majority of property I buy for clients has a very different list of characteristics compared to the initial brief.
Trust your gut feeling on value
It’s fair to say that the asking prices of property in Mallorca are erratic. In the majority of cases, there are few comparables to draw down on. Location, size, access, electricity, water, views, proximity to beaches, ports, airports, and amenities are just a few factors to take into account when establishing value. Your gut feeling will tell you when you and your agent have found the right property. Similarly, your buying agent’s instinct, honed by years of experience, will tell him if the asking price of the property is too expensive or represents good value. My personal view is that it is the buyer who determines the value of a property, not the seller – without a buyer there is no value.
Manana, manana. Have patience: It took 372 years to complete Palma Cathedral. Mallorca doesn’t operate at the pace you may be accustomed to. It is worth remembering that this may be the very reason you are looking to buy a property on the island. The rewards for a patient buyer are well worth the wait.