Services
People
News and Events
Other
Blogs

Buying a property in Majorca, Spain

  • Posted

It's easy to see why for many of us, the beautiful island of Majorca offers the ultimate package for a holiday home destination; beautiful bays and stunning coves, sandy blue flag beaches, and an historic capital that still offers a sense of authenticity.  The sailing fraternity helped put the place on the international map back in the 60’s ad 70’s and the island remains a firm favourite with well heeled Northern Europeans. Of course, all of this on a small island comes at a price so I caught up with a local estate agent to get the low down…  

Video transcript

Jonnie:So I'm now with Stefan from Majorca Best Homes Is that right? Yep. And you're a registered agency based here in Majorca and Santa Ponsa is your speciality. So thats where we are right now and I'm staying here at the moment as well. It feels quite different to a lot of other parts of Majorca. It feels quite residential in some areas.

Stefan:Yeah. This area is very residential. Not very many tourists, it's nice place. A quiet place and an expensive place. 

Jonnie:It's not a cheap place anyway, mainland Spain makes this look quite pricey. And then when you come to a residential area, you get that sense of exclusivity. So do people live here full time?

Stefan :No, it's mostly holiday homes in a residential area. 

Jonnie:OK so for mere mortals, let's go down to apartments. How much do you need to pay for a one bedroom apartment? 

Stefan:If you are able to renovate it?

Jonnie:Yes.

Stefan:A one bedroom apartment versus a small living area and kitchen that you can enjoy with a sea view you can start rolling the ball at €150,000. 

Jonnie:Really? 

Stefan:Yes.

Jonnie:You mentioned renovating. How easy is it to do here? I mean, it's an island; the building materials, the costs of everything?

Stefan:The materials are not the issue. The issue is you have to normally be here or you need a person you rely on to manage it. Otherwise it's like every other build;. you want, you want, you want to have it but you don't get it. 

Jonnie:Sure, it's the responsibility that comes with development. Okay. So €150 grand will get you a 'doer upper’. But for €250,000 to 350,000 what are we looking at? 

Stefan:Maybe with €350.000 you get a two bed apartment. Maybe a little bit of sea view, but mostly a garden in a community with nice areas and access to a pool.

Jonnie:Okay. And if you were to buy something between €250,000 €350,000 in a good area, what rent would you get?
Stefan:For long term? I would say with basic furniture. You can start at around about € 1.2k.

Jonnie:So 1200 euros a month for a longterm.

Stefan:Yeah, a holiday let in a tourist area for a two bedroom apartment. First of all, you need a license to rent it out.

Jonnie:And that's come about as part of the Andalucian law that came in a couple of years ago?

Stefan:Yeah. And you need to have a license, the main issue at the moment is to get it.

Jonnie:But if you can buy a property that already has a license, you're ahead of the game. But that probably attracts a premium to the price?

Stefan:Yeah. Normally you get a rented price per week, what you get for longterm in a month.

Jonnie:Okay. So it's not the cheapest place in Spain to buy a property and it's not the easiest place to develop. So why do people come here? What is the big sell? 

Stefan:The big sell is you are very (quickly) fast on the Island, even from Sweden, UK, Germany, Switzerland. You need two hours, a little bit more or less, and you'll be on the Island and you have all year round sun.

Jonnie:Just briefly, the market, what's it doing at the moment? It's still rising?

Stefan:Yes it is. This is a very expensive place. 

Jonnie:Even as an estate agent you appreciate that it's expensive.? How much is it going up a year?

Stefan:Around 5%.

Jonnie: Really?

Stefan:Yes. Well, it depends on the area, but on average, yes.

Jonnie:Right. Okay. So if you have in mind to do it, do it now. 

Stefan:Yup.

Jonnie:Great advice. Thank you very much for your help.

Stefan:You're welcome.