Properties are rare on Mallorca. Many investors therefore opt for an existing property. Is it worth renovating or even refurbishing? Or is a demolition followed by a new build more sensible?
There is a lot of building, renovating and expanding going on again on the island. The pandemic has disrupted many plans or brought them to a standstill. But true to the motto "postponed is not canceled", things are now back on track. Projects are being continued or tackled anew.
Level as before the pandemic
This development already began last year, says András Sántha, Managing Director of Reformasters in Mallorca. The experts in new builds, conversions, renovations and refurbishments have been on the island for 15 years and are the first port of call for all matters relating to your own four walls. According to the Chamber of Architects of the Balearic Islands, the number of new construction projects on Mallorca and the neighboring islands has reached the pre-pandemic level and even exceeded it by three percent.
Housing shortage with consequencesNevertheless, there is a lack of living space on the island. This is evidenced, not least, by rent prices, which have risen considerably and have long been borderline in some regions. As a result, there are fewer workers available to the construction industry. Although they earn a good salary, they cannot afford accommodation and therefore do not come to Mallorca in the first place, explains Sántha.
Building and renovating
Reformaster is primarily specialized in the construction of new luxury villas, but also and especially in the corresponding renovations. With fewer and fewer building plots in good locations on the island, many private investors are buying houses in order to either renovate or demolish them and then build new ones on the same site, explains András Sántha. A situation that is not only unsatisfactory, but also costly. "It is brutal that someone pays the price of a house and then has to tear it down completely to build something new or contemporary," says Sántha.
Demolish or renovate?
Basically, you should always consider whether a renovation is worthwhile or whether demolition and subsequent new construction is the right choice. On some sites, especially on the coast, you should be very careful when demolishing existing buildings, warns the Reformasters managing director. According to the new regulations, nothing that has already been demolished may be built on these protected properties." In other cases, the existing building does not have the necessary building quality, or the construction method does not allow for renovation. In such cases, demolition and rebuilding are recommended, as this gives the client a well-built, reliable house, says Sántha.
Important testing procedures
We always advise our clients to hire a company or architect in addition to the checks carried out by the lawyer and to check the municipality's plans,
András Sántha continues. If you compare these documents with reality, it is relatively easy to see what is legal and what is not. Reformasters also checks whether there is no "urbanistic file". These concepts are very important in order to apply for a building permit after purchasing the land, for example for a pool or a house extension.
The battle against moisture Construction expert Sánthas does not see any major differences between Germany and Spain. Apart from the climatic conditions. It is warmer in Mallorca, there is higher humidity, and buildings near the sea also have to contend with humidity, says Sánthas. In fact, there are properties on Mallorca that are so exposed to the sea that special materials, similar to those used in boat building, have to be used so that they can withstand the weather conditions.
Other differences are that the insulation of houses is not quite as thick as in northern Europe, for example, and triple glazing is not absolutely necessary. Therefore, the sun protection should be chosen accordingly. Reformasters recommends a special laminate between the panes, such as that offered by Guardian Sun. Difficult times Sántha is referring to reservations, all of which have been used so far. However, the coming times will be difficult, as the effects of the war in Ukraine will only really be felt in winter and next year, according to Sántha. Nevertheless, the construction expert expects a very positive year overall for the construction industry on the island. Anyone thinking about such a project now should create a timetable. Applications and permits "The first thing is to check that everything is correct," explains András Sántha. Then comes the purchase contract and the visit to the notary to sign it. You should allow at least four weeks for this alone. Anyone planning major work will need the support of an architect. This takes around four to six months," says Sántha. Only with this construction project can the permit be applied for. If there are no objections, the town hall will send a positive response. This takes an average of eight months, according to the Reformaster's managing director, who adds: "In Calvià it can be quicker, in Andratx it usually takes longer." Use the waiting time sensibly The waiting time is usually used sensibly: The finishing project is prepared, as this is required for planning permission. An average renovation takes six to ten months, a new build 12 to 18 months," says Sántha. The municipality also plays an important role here. In Calvià there is a so-called noise moratorium from May to October. This means that construction work with a corresponding noise backdrop may only be carried out from 10:30 am to 1:00 pm. This slows things down considerably. Service from A to Z The team of experts at Reformasters is fully committed to every project and is enthusiastic about what they do. "Personally, I like the complete renovation of villas best, both in terms of the design and the modernization of the technology," says András Sántha.
It is impressive to see how a good design and well-executed work can result in a modern house with a contemporary design. "It is almost like the birth of a butterfly", says the construction expert. However, it is also precisely these reforms that cause surprises from time to time. B¨se surprises However, it has also happened that during a renovation, it was discovered that the entire structure of the house was in a very poor and even dangerous condition. The entire house was given a new iron construction, which led to delays in the work and an unexpected, considerable increase in costs. In this case, demolition and new construction might have been the better solution," says Sántha from Reformasters.
Which shows that prior assessment of the property in question is immensely important.
As pleasing as the development in the construction industry is, the current problems in terms of availability are just as serious. Fortunately, there have been no significant delays of more than a few weeks so far, says András Sántha. However, the price increases are clearly noticeable. "We cannot make any fixed offers for materials at the moment, but most customers understand that." The biggest challenge is still to come, however.
As far as prices are concerned, there are major regional differences on Mallorca - both for existing properties and new builds. The highest increases in the price per square meter this year were 39 percent in the area around Palma de Mallorca. Here, the average price per square meter for existing buildings is 4,977 euros, while buyers have to pay an average of 6,898 euros for new buildings.
The center and north of the island also increased: In the center of Mallorca, existing buildings are now at 3,259 euros per square meter and thus cost 29 percent more than in the previous year; the price of new buildings has reached an average of 4,190 euros.
With an increase of 21 percent in prices per square meter, the north is in third place island-wide. Existing properties here now cost an average of 3,765 euros per square meter, while investors can expect to pay 4,545 euros for new builds.
The price increases are a sign of demand in one region or another. The ranking is different for pure prices per square meter. Here, the south-west of the island continues to lead the table, both for existing and new builds. The east coast attracts with great bays and idyllic coastal sections, is considered quiet and green.
In second place is the capital Palma and its surrounding area. The center of the island, in third place in the statistics, still offers comparatively low prices per square meter, but is more in demand than ever. It is unclear whether the landscape really scores points here, or whether the region is currently experiencing a boom as a kind of inexpensive alternative solution. Only time will tell.
The southwest (+9%), northeast (+8%) and northwest (+6%) of the island will surprise with comparatively low price increases in 2022. Palma itself has also seen a moderate increase of ten percent in the price per square meter this year. This looks good at first, but proves that real estate prices in the city of Palma have long since reached a maximum that is difficult to top with serious offers.
More information at Reformaster
The Circle - Carrer de Illes Canaries, 18
07183 Santa Ponsa
