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TODAY'S OTHER NEWS

Property investors prepare for July reopening of Balearic Islands

Property investors and second home owners are welcoming the news that the Balearic Islands are set to reopen to international visitors from July 1.

Estate agency Engel & Völkers Balearic Islands says the Spanish government's decision to reopen sends out a positive message to the holiday home market.

"Since 2012, international buyers have, on average, accounted for 43% of the total volume of property sales transactions in the region," explains Florian Hofer, managing director of the firm.

"The property sector accounts for no less than one-fifth of this region's entire gross domestic product. This makes our industry the second most important driver of The Balearic economy directly after tourism."

The agency reports that interest in residential property on the island of Mallorca in particular has not receded as a result of the coronavirus pandemic.

From the beginning of the lockdown on March 15 up until May 29 this year, Engel & Völkers Mallorca reports total sales transaction volume of 63.3 million euros.

It calculates the average sale price for properties across the island at 1.8 million euros, up from 1.6 million euros in 2019.

"We are confident that the property sector will continue to see continued growth with the start of the summer season," says Hans Lenz, managing director of Engel & Völkers Mallorca Southwest.

"There will be a catch-up effect over the coming months, especially in the segments for premium homes and new builds."

The agency says that its investment in technology allowed it to continue operating despite the strict travel and contact restrictions in place across Spain for weeks.

"We were able to take our clients on live video viewings and virtual 360-degree tours," explains Hofer.

"The feedback from our clients throughout Europe has been very positive indeed."

He says the agency expects to continue using technology to close property sales in the future and that as a result of digital tools, many prospective overseas buyers have already scheduled in-person viewing appointments for July.

According to Engel & Völkers, investors are increasingly being drawn to arge coastal villas or rural secluded estates with extensive garden grounds, a private pool, and panoramic views of the Tramuntana Mountains or the Mediterranean.

Newly-built residences with top-quality features are also highly desirable among many prospective buyers.

"Many of our clients still want to pursue their long-term plan of investing in property in this region and are patiently waiting for July 1 when our borders are open once again," says Hofer.

"The Balearics have always been regarded as a safe haven in the Mediterranean and when this crisis has passed, the revival for island locations with a quality lifestyle in a safe and protected environment will come into their own."

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