Lutz Minkner über Mallorcas Immobilienmarkt: Rege Nachfrage, gute Abschlüsse
In my last column, I reported on the consequences of the pandemic for economic livelihoods, unemployment and short-time work, the poor organization of the distribution of state funds and the great solidarity among people and the admirable activity of charitable organizations and many helpers from the private and business sectors.
In the meantime, many friends of the island have had the opportunity to come to Mallorca over Easter and Whitsun without any onerous quarantine regulations and to enjoy the beauty of the island and the hospitality of its inhabitants, despite the restrictions still in place. Many of them realized old and new dreams and bought a vacation property or a permanent residence in Mallorca.
So I can tell you today that the real estate market in Mallorca is currently characterized by very good demand and very good deals. The prophecies of doom from some know-it-alls about a drop in prices and a bargain market following the pandemic have not materialized. The prices of quality properties sought after by foreign buyers have not only remained very stable in the mid-price segment, but have even risen significantly for luxury properties.
There are many good reasons for this: On the one hand, after a year of „Mallorca abstinence“, during which purchase plans were also made available, there was a certain amount of pent-up demand. This was fueled by the idea of being able to survive such pandemics better on Mallorca than in the home country. Better to sit out the crisis on a finca with a pool in pleasant temperatures than to be cooped up in a city apartment. And then there's another thing: there are 7 trillion euros worth of money in German bank accounts. People fear a considerable loss in value because governments have fired up the money printing presses without hesitation. Mallorca is seen as a safe investment location. You are buying a solid returnopportunity and the emotional return „quality of life“t“.
Now some people will say that this is only an alternative for the wealthy and that the gap between rich and poor is widening. Yes, that is certainly true.
But wasn't it always the case that only those who were able to save something and had saved could afford a vacation property abroad? And yet: these investments (this year it will be more than 2 billion euros) benefit everyone: the state earns a one-off 10% land purchase tax or value added tax on these investments - that's a good 200 million euros; every year, investors are subject to property, income and wealth taxes; and finally, they are the best consumers: not only in the hospitality industry, but also in trade, commerce and services. This preserves jobs and creates new ones. So it's a win-win situation for shoppers and Mallorca. The government has to do the rest. After all, several hundred million euros are flowing from EU funds. They want to be invested wisely for the benefit of all.
Lutz Minkner looks back on 45 years of activity
as a lawyer, lecturer, author of specialist books
and entrepreneur
. Since 1984 he has been a member of the board
of the real estate company
Minkner & Partner, www.minkner.com
