In a weird turn of events, the Mallorca property market is currently experiencing a trend that seems to be beneficial to both buyers and sellers of real estate in a time when the market is showing signs of strain and decrease. Owners are currently renting out their properties to prospective buyers who get to try it out before they make a purchase.
The reason why this move is beneficial is because it provides reluctant or hesitant buyers with the time to experience the property and convince themselves whether it’s worth it. The head of rentals for Mallorca Sotheby’s International Realty, Isabel Steinkamp had this to say on the matter: “‘Not only does it cater to the try-before-you-buy market, but it also gives our would-be vendors, who are perhaps waiting for the property market to make a full recovery, a chance to earn some regular income from their asset”.
All of the Mallorca properties that are being rented go out to foreigners, especially Germans, British and Scandinavians and most are in the luxury segment of the market, villas and apartments in great locations such as on the beach and with excellent amenities such as luxury finishes, air conditioning, satellite TV, underground parking etc.
This trend will probably lead to more Mallorca real estate agencies opening up rental departments that will alleviate some of the decrease in the number of transactions and ever dwindling number of investors.
Despite this, the Mallorca property market is still one of the hottest places in Spain in terms of prices and number of purchases, thanks to a number of proactive measures being taken by local authorities, such as dropping the VAT tax on new property purchases until next year, but also by a number of unique factors like the scarcity with which new properties are being built in Mallorca.