The capital of the Balearic Islands, Palma de Mallorca, has been deservedly compared to Barcelona. This elegant city is full of charm, has a rich history and traditions that cannot fail to excite lovers of antiquity - and at the same time it has the image of a completely modern and rapidly developing city. The Quintessence of Expectations In many ways, Palma de Mallorca can be considered the ideal for most real estate buyers, as this city combines safety, popularity among tourists, transport accessibility, special chic architecture and centuries-old history of the old quarters. Therefore, experts' estimates cannot be called surprising, according to which the number of Britons alone who own real estate in Mallorca is already 80,000, while a quarter of them chose the island as their permanent residence. But the British are not the only investors in the Balearics. According to most agents, there have been changes in the national composition of buyers in recent years. Robert Monder, CEO of First Mallorca, says: "If the main force driving the local secondary housing market was the Germans and the British, today the majority of investors come from Eastern European countries such as Russia, Poland and the Czech Republic." Naturally, the medicinal Mediterranean climate has always been one of the main reasons for settling on the island - especially for those living in countries with short summers and chilly winters. But the flight to the island in the azure waters of the Mediterranean Sea is not so tiring and lasts a little over four hours. No wonder Palma was built The city of Palma itself, with a population of less than 400,000 people, stretches 15 km along the coast - from the city of San Arsenal in the east to the resorts of Cala Mayor and San Augustin in the west. You can get to the airport from the capital of Mallorca in just ten minutes. Like most cities founded by the sea, Palma has expanded in semicircles, and each part of the city has a unique atmosphere. The once dilapidated and unkempt street of Santa Catalina, located west of the walls of the old city, has now changed its face, not least thanks to a bustling market and many bars and restaurants. The oldest and most popular tourist street, La Lona, has experienced a similar revival. As in Santa Catalina, chic cafes, restaurants and bars are open at any time of the day, which spurs demand and real estate prices in the area. The most intensive restoration work is currently underway in the central historical district of Calatrava. This quarter contains a whole labyrinth of narrow streets and alleys, it is here that the cathedral is located and museums and mansions with a long history are concentrated. Despite the fact that old mansions that have undergone renovation usually find new owners even before they are officially put up for sale, you can find less exclusive objects in Calatrava, for example, more modern apartments and townhouses. Situated on the eastern outskirts of Palma, Portixol has grown from a poor fishing quarter to one of the trendiest youth hangouts in recent years. There are very few fishing houses near the pier. Like the once-abandoned suburb of Terreno, Portixol is now reaping dividends from its unexpected popularity. Not so distant 60s Real estate overlooking the De Palma Bay is in greatest demand today, especially if these are residences by the water's edge: the cost of penthouses here reaches several million euros. Luxury villas on the territory of Son Vida resort are among the most expensive proposals on the Balearic Islands, and therefore this part of the coast is now called nothing but "Beverly Hills Mallorca". The area is surrounded by three of the best golf courses on the island and offers breathtaking views of the city and the bay. The representative of the "swinging 60s" photographer Trevor Clarke has printed hundreds of pictures of top models of the distant decade in his studio in Soho. In it, he created portraits of rising pop and rock stars of the early 60s, who then made a dizzying career, becoming world celebrities. At the same time, in 1968, Trevor Clarke moved to Mallorca, where he took up advertising filming against the backdrop of tropical landscapes. Today, he lives with his family - his wife Joe, son Christian and daughter Chiara - in a villa on Puerto Portals harbor, which houses one of the most prestigious marinas in Europe. The photographer chose this place due to the proximity of the sea, amazing views and proximity to the center of Palma. Despite the fact that, living in the UK, he could never complain about boredom and monotony, the Balearic Islands exceeded his expectations - the photographer is still in awe of Mallorca, its lifestyle, cuisine and, of course, the climate! Another, much less luxurious part of Palma is the outskirts of the city, the border of which runs along Chintura Street. Multi-storey residential buildings are being built here - a solid economy class for lovers of urban comfort. In such residential areas as Son Rapinha and La Vileta, as a rule, young couples buy apartments, and the heads of families from here leave for work in the city every day. Advantages of renting Magdalena Schaeffer, realtor and financial consultant of Centro Inmobiliario, when choosing an area, advises a potential buyer: "An investor who is going to rent out housing should look for real estate, no matter secondary or in new buildings, located no further than Chintura Street." The rental-oriented real estate market is in the strongest position, and not only during the hot holiday season. As a result, First Mallorca recently opened additional rental business units, which Robert Monder attributes to the huge demand for long-term rental housing in Palma de Mallorca. Magdalena Schaeffer believes that such a favorable situation for investors has developed for obvious reasons: “The government provides young people aged 22 to 30 with assistance, which this year amounted to 210 euros per month, besides, when concluding such transactions, tax incentives are guaranteed for both homeowners and tenants, which on both sides stimulates the development of this market segment. " Most buyers, according to Magdalena Schaeffner, in the past few years have been young couples who would like to buy their first apartment. In 2008, this category of clients usually chooses not buying, but long-term rental housing. They simply cannot afford high mortgage payments, and cheaper properties do not suit their location. Therefore, for young families, renting is the ideal solution. Without a mortgage Given the adjustment, and in some cases the fall in prices, now is likely the right time for those who already have the full amount to buy real estate in Palma and are not bound by the need to take out a mortgage. A one-bedroom apartment on Paseo Maritimo Boulevard near the sea is estimated at about 100,000-300,000 euros, for a two-bedroom apartment in a building after a good renovation in the old town you need to pay 130,000-350,000 euros. Detached houses within the ring that forms Chintura Street cost over 750,000 euros. Christian Pfleger of Europalma also recommends checking out inexpensive new developments in the promising Plaza Cuartera area. Palma is not the only destination on the island where real estate is actively sold. However, in the current financial climate, transactions are concentrated in the capital of Mallorca, since this is where buying real estate becomes most profitable. “Most of those who bought housing here three years ago on credit are now unable to cope with mortgage payments,” adds Magdalena Schaeffer. "They are often willing to cede these properties to be able to cover their debts." It is rather risky to predict when the situation on the Palma property market will finally return to normal, but Christian Pfleger is optimistic: “As soon as people realize that the adverse events that predicted house prices in Mallorca have not happened, the market will regain investor confidence, real estate prices will start to rise again - perhaps quite significantly, and possibly in the near future. "
Under the palms of Mallorca
01.05.2009
Author: Joe COLEY
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As soon as property in most of the continental coasts of Spain fell in price, experts say that the same fate awaits and prestigious, expensive and popular markets Balearic Islands. Certainly, the crisis has affected this Mediterranean archipelago, but things here are much better than on the mainland: in the main city of Mallorca – Palma – the situation is saved by growing demand for rental property.
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