News on the property market in the Balearic Islands

After the impact of the pandemic, the real estate sector faced great challenges for the future. In the months of March and April the sector’s indicators pointed to a great standstill in activity and prices, however, after the confinement it was reactivated very quickly.

According to the Balearic Association of Real Estate Services (ABSI) it can be affirmed that the real estate transactions during 2020 were similar to 2019, with which we can assure that the health pandemic has hardly influenced the real estate activity.

Expectations for 2021 are optimistic as sales are expected to increase, however, there is great uncertainty about the rise or fall of prices. With this, the way out of this situation will generate a wave of optimism and consumption so that the housing market consolidates as a reality and an investment opportunity.

Lombardo Credits

These can be a solution for financing the purchase or renovation of a home. They are a type of credit that can be obtained through CAIXABANK WEALTH MANAGEMENT LUXEMBOURG, an entity of the CAIXABANK group with a banking licence to operate as a bank in Luxembourg. They provide an independent advisory service for private banking clients to provide financing for any type of purpose, with a guarantee of their investments through Lombard Credits.

– Range of solutions provided:

• Access to finance.
• You can choose how you wish to receive advice.
• Application of the PIT regime for transfers between Collective Investment Institutions, without the need for the custody of the securities to be in Spain.
• Possibility of changing the marketer of your investment funds.
• Succession planning in association with the main international insurance companies through Unit Linked.
• The bank acts as custodian and manager, guaranteeing the soundness of your proposal.
• Investment in SICAVs and FCPs with a high volume of assets under management, providing a comprehensive and flexible offering for differentiated investment solutions.

For further information, please contact:

Gabriel Mir Pieras (Private Banker)

gabrielmir@caixabank.com

+34 679 417 773

Alexandre Rosselló, 40. 07002 Palma de Mallorca

The property market in Mallorca and Ibiza

After a brief study of the price of housing in Mallorca and Ibiza, we leave you with a series of data on the most sought-after municipalities and their respective prices per square metre:

– Average price of a property in Mallorca:

The value per square metre of a property in Mallorca is 3,108€ and the average purchase price is around 1.5 million euros.

– Average price of a property in Ibiza:

The price per square metre in Ibiza is 4,816€/m2.

– Areas with the largest offer of properties in Mallorca and their price per square metre:

• Palma de Mallorca: 2.923€/m2
• Calvià: 4.317€/m2
• Andratx: 4.989€/m2
• Pollença: 3.045€/m2
• Llucmajor: 2.537€/m2
• Valldemossa: 3.875€/m2
• Deyà: 4.969€/m2

– Areas with the largest offer of properties in Ibiza and their price per square metre:

• Sant Antoni de Portmany: 3.765€/m2
• Sant Josep de Labritja: 5.871€/m2
• Sant Josep de Sa Talaia: 4.820€/m2
• Santa Eulalia del Rio: 4.688€/m2
• Formentera: 7.414€/m2

Is there such a thing as a free sale of property?

The vast majority of people understand that they can proceed with the sale as they wish and when they wish with their property, but this is not the case. There is often a limitation on the power of sale that can even nullify the sale. This is called the right of pre-emptive acquisition: Pre-emption and Retraction, that occurs between neighbours of certain types of rural properties as well as when a property is owned by several owners.

The right of pre-emptive acquisition is the right that gives the holder the right to acquire a certain thing in preference to any other if the owner has decided to sell it.

Within this right there are two other rights: Pre-emption and Retraction. The right of Pre-emption gives the holder the right to acquire in preference to a thing that the owner wants to sell and is carried out before the sale. This means that the owner of the thing has an obligation to sell it. And the right of Retraction is the right that the person has to subrogate the conditions established in the contract with the owner of the thing that is being sold, and it is carried out once the contract has been made or even registered in the Land Registry.

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