Why does the housing price rise in the Balearic Islands?
According to the latest news from the sector, the Balearic Islands is the community with the highest rise in the price of housing, with an amount of about 2,300 euros per square meter.
Cristina Ahumada: From your point of view, why this rise in housing prices in Baleares?
Rosa Ramón: For several reasons, on the one side the economic situation has improved, also the access to financing, more operations have been signed, demand has been increasing and expectations of used home sales have grown . Foreign demand has also grown, because Mallorca is one of the most precious destinations. All this means that demand exceeds supply and causes price increases. Mallorca entails a shortage of land, has limited growth.
From my point of view, one of the possible measures to mitigate the price increase is that urban planning regulations allow more heights. This reduces the cost of construction, there would be greater supply and prices would be lowered.
This price increase we have been telling for several years, how to make it go down?
It is the market itself that regulates it. The more demand and lower supply, the more prices increase, but there are also political decisions that can influence the price.
Not only does the house for sale go up, but also the rentings. Any olutions?
The rental price continues to rise, since not everyone can access the purchase of a home, since it implies a very important level of savings and, again, the demand for rent is greater than the supply, which makes raise the price
And it is not that the houses are of great qualities for the price they hold, both for sale and for rent…
This is because in Mallorca the main value of housing is land, not housing itself. It influences the location more than the qualities of the house.
Following these price increases, what would be the forecast of sales in the Balearic real estate sector for this year?
All agencies indicate that cities such as Palma, Ibiza and Formentera are touching the ceiling at the price level. There is no forecast that they be uploaded, but that they be maintained. A sales number similar to the year 2019 is expected.
With the increase of sales prices, is it a good time to invest in Mallorca or not?
From my point of view it is a good time to invest in Mallorca, but it has to be done with advice from professionals. Investing in brick on the island is still a safe value.
At the moment, what product is most demanded by foreigners?
Foreign demand is focused on the old town of Palma, areas with sea views and complementary services. Priority is given to areas that are no more than 30 minutes from the airport.
You define yourself as `boutique real estate´ tell us in more detail what it is, what differentiates you from a traditional real estate”
For us, quality is more important than quantity, for us each client is special with very specific needs.
Full interview on this link: YOU TUBE