Interview with Oliver Girharz "Why passive houses don't suit Mallorca's lifestyle"

Construction project manager and expert Oliver Girharz ündiger about current trends and topics on the construction sites of residential properties on Mallorca.

Realtors, builders and regional architects' associations are usually the most quoted sources when it comes to presenting the status quo of Mallorca's real estate sector in terms of current price trends, supply and demand. The extent to which their own interests play a role remains to be seen.

Oliver Girharz, managing director of the construction project management company Matrol, which has been based on the island for a number of years, is considered an eminence in the industry for the independent assessment of private cement and masonry projects.

Construction project management. Sounds important. But really useful?

Our clients are usually foreigners who want to realize a construction project in Mallorca. For example, the construction of a new villa or the renovation of an existing property. Very few of them know anything about the building trade, and certainly not in a language they do not understand. We therefore take on the supervision of the project on their behalf.

That means?
New construction or conversion in a foreign country involves numerous risks. Not least because of the costs involved. Our company primarily offers professional advice on the realization of the planned construction project. However, desire and reality are often far apart.

So foreign builders in Mallorca are naive?

No more and no less than anywhere else. The biggest problem with foreigners' construction projects on the island is often their misconceptions. Mallorca is still considered by many to be a kind of southern European developing country. Construction costs should actually be cheaper here than in Central and Northern Europe due to supposedly low wage and production costs.

And that's not true?
The opposite is actually the case. Most building materials have to be transported from the mainland to the island by ship. This drives up prices, especially for higher quality building materials.

What is the current situation regarding the time it takes to obtain building permits on Mallorca? The same as before the corona crisis. There is no planning certainty regarding the completion of a construction project. Both the legal and technical requirements and the processing time for applications vary from municipality to municipality. However, the more complex the project, the longer it can take. Permits for renovation or refurbishment work are approved more quickly. Nevertheless, the generally lengthy procedure regarding the issuing of official certificates in Mallorca leads to confusion and annoyance for many foreign clients.

Building in Mallorca is therefore not an easy matter.

It is becoming more difficult. Especially for new construction projects in rural areas, the legal regulations regarding the maximum building area were tightened across the island last year. Naturally, this is not exactly met with enthusiasm by potential foreign investors at the moment.

The prices for building land in Mallorca are therefore falling due to falling demand.

Demand for building land remains high on the island. This was no different even during the coronavirus outbreak last year. However, we are seeing an increase in demand for renovation projects for existing properties compared to the past.

So as an investment to increase the property value in the event of a sale
I can't say that. Certainly, there are currently numerous renovation projects that are aimed solely at increasing the value of the property on the market with the help of a simple makeover, i.e. superficial renovation or modernization. But that is not our clientele. Our customers primarily want to increase the quality of living in their island property with extension or conversion work.

Energy and heating costs are currently rising to unprecedented heights across Europe. What impact does this development have on new build and renovation projects in Mallorca? I don't think any property owner in the world is interested in throwing their money out the window. Modern, energy-saving building and insulation materials, as well as efficient home air-conditioning technology, are largely standard in new builds on Mallorca. However, the requirements of foreign builders or owners on Mallorca differ from those in Central or Northern Europe in terms of the energy efficiency of their properties.

In what way?

In principle, both residential and commercial buildings should be built as energy-efficiently as possible. This is also an EU-wide requirement for new buildings. Keyword: passive house. Energy loss in passive houses is almost zero thanks to state-of-the-art insulation properties and computer-controlled air circulation technology. An open window or door is an absolute no-go for this concept. But this is exactly what foreign homeowners in Mallorca want: the largest possible, light-flooded window fronts and room openings leading from everywhere to the outside. Tell them that they should keep the windows closed all year round.