It’s been an odd thing this winter around the Mediterranean – regularly commented on by both locals and residents who winter in these warmer climes – that there have been very few particularly cold days this winter.
It might surprise those who visit in the summer months that we regularly have snow in Mallorca every year. Historically, this was collected and stored in deep caves for use in the summer months.
Speaking for myself, my favourite winter coat has been out of the wardrobe for less than one week! I’m sure our memories of previous winters are not entirely reliable, but news from Cyprus on the BBC in March/April reported that summer had come early this year, with sunbathers filling the beaches. Recent political change in Spain and the Balearics has brought about some welcome changes thatare having a significant effect uponthe property market, especially herein Mallorca.
A significant number of rural properties are on land designated as ‘Rustic’. Since 1997/8, the minimum plot of ‘Rustic’ land permitting the building of a dwelling was increased to over 14,000 m2. As a consequence, some 130,000 properties across the Balearics are not fully legal.
The new government instructed the Institute of Architects to carry out a full study, and the recommendations have since been approved by the government and are now being passed into law. This will enable owners to ‘legalise’ their properties and pay a ’charge’ or fine. Potentially generating a huge tax revenue for the government.
This change, that still requires a few months of legislature to be enacted, will have a time limit of three years for owners to take advantage of. The requirement to obtain a licence from the Military for all foreigners to purchase ‘Rustic’ land will still apply. This takes six to eight weeks and is usually a formality, as long as the buyers do not have any previous criminal convictions.
Regarding the current property market, prices have continued to rise in all areas and price ranges. Of course, with some regions experiencing higher increases than others, that reflects desirability perhaps more than just outright demand.
Reports regarding first time buyers and young families struggling to get onto the property ladder seem to be the same from all countries in western Europe, as we regularly hear from the UK.
In Spain, where many rent long term, the annual rental cap following Covid, set at 2% for 2022 then 3% for 2023, now sits at 4% until January next year and is combined with strong rules protecting tenants. This has helped many renters avoid the massive increases being experienced in the UK.
Restrictions protecting tenants inevitably lead to a drop in available rental property. To encourage owners to rent their properties, the Spanish government has permitted a new legal long term rental contract, called a ‘fixed term’ or ‘Temporal’ contract for owners.
This is solely for renters for whom it will not be their primary residence. It allows for a fixed term, after which the tenants must vacate the property and have no ongoing tenants’ rights to remain. This does fill an important gap between the ‘holiday’ rental agreement, requiring a holiday licence, and the standard ‘seasonal’ or ‘long-term’ rental contract that comes with the aforementioned tenant protections.
The sales market is experiencing a very welcome uplift this year compared with 2023. Confidence is much more evident among buyers and the number of enquiries and booked viewings was significantly higher than last spring.
Buyers are sanguine about asking prices and are not expecting great increases in the coming year or two. This steady and sensible approach best reflects overall professional opinion.
However, there could be some surprises with regard to country property on ‘Rustic’ zoned land where, when legalised with the granting of a ‘Cedula de Habitabilidad’ formal habitation certificate, buyers can then obtain a mortgage, where it was not possible previously.
It remains evident that property in leading resorts and popular areas around the Mediterranean are viewed by both buyers and lenders as a secure place to invest. At the moment, there is a healthy number of new instructions and it is becoming, ever so gently, more of a buyers’ market. We have some outstanding property for sale, from country estates and superb DOC vineyards with classical farmhouses, to impressive coastal villas and apartments with stunning sea views.
Wherever you choose to find your home or home from home, we are ready to welcome you. Now is the best time to travel, view and purchase property in the sunnier climes of Europe, whether it be Tuscany, mainland Spain, southern France or the Balearic islands.
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