Mallorca: Premium real estate becomes more affordable
The times when the purchase of any object of foreign real estate a priori was considered prestigious, gradually disappear into the past. Today, many Russians can afford to buy houses and apartments not only in Bulgaria, but also in England, France, Cyprus. Few people will be surprised by the opportunity to buy a resort property in Spain, if, of course, we are talking about housing in the mainland. Another thing is the Balearic Islands, which are part of the Kingdom of Spain, and first of all the largest of them: Mallorca. The situation in the Spanish real estate markets over the past few years has nothing to do with the sale of real estate in Mallorca. During the crisis, real estate prices have not decreased, however, in the near future, analysts predict their noticeable growth. The construction of a racing track for Formula 1 in Mallorca, the improvement of berths for cruise ships, the expansion of gas supply networks and railways - all this is an incentive for serious investors to invest in island real estate: luxury villas in modern or old style, premium apartments, penthouses with panoramic sea views, land plots.
From the point of view of Russian buyers, the choice of local real estate is somewhat unusual - secondary housing dominates the offer market. However, prejudice is quickly dispelled if you imagine who could own “used” real estate – Mallorca has long been chosen for summer residence by members of the royal family, Hollywood stars, famous athletes and fashion models. The purchase of such housing is not just a demonstration of financial capabilities, it is an application for belonging to layers of society in which the preference is given to true rather than ostentatious values. Therefore, villas and palaces in Mallorca are rarely bought for the purpose of resale or renting out, they are usually purchased for permanent residence by those who feel the need to raise their quality of life to a new, more decent level.
The beautiful climate of the island, the friendliness of the local population to foreigners, the almost complete absence of crime, wide opportunities for communication with any countries of the world contribute to the inflow of investment in real estate on the island. However, prices even for standard villas in Spain, and even more so for exclusive mansions and entire estates (the so-called Finns) in Mallorca are too high to do without a bank loan when buying them. Mortgage loans, as a rule, cover at least 50% of the cost of the object, the average loan rate is 5% per annum. Loyal credit conditions make expensive real estate more affordable for Russians, who are among buyers of housing in Mallorca so far significantly less than Germans, Swiss or immigrants from Scandinavian countries.