Lack of building plots increases prices
Don’t wait too long and secure some plots, even if you might have to wait 14 - 20 months to obtain the building license, as during that time you can still make good business.
Since last year it has become difficult to find building plots in Mallorca. Why is that so?
There still are building plots available, but not in top locations. Reason being, that those are all sold out.
Does that apply to the whole island or only certain areas?
It mostly applies to the municipalities of Palma, Calvià, Andratx, but even at the „Costa Nord” and other areas it is getting scarce. Every now and then however it is possible to find building plots in good locations.
What does that mean for the investors?
It means, that it will be impossible to find building plots for new developments in prime location in the Southwest. Investors and promotors will have to focus on existing villas, the motto will be to renovate rather than to waste time with the search for building plots.
But aren’t there still a lot of building plots available in Son Vida?
Theoretically there are, however, for the old part of Son Via a building freeze has been declared. It’s not even possible to obtain a license for renovation or reconstruction, until the necessary connections of infrastructure (such as fresh water, sewage, electricity and gas) have been laid out.
To do that, all streets have to be opened up and new pipes and wires have to be laid out and afterwards new pavement, street lights and pedestrian paths have to be edified.
Since the town councillor gets a lot of pressure from property owners, developers and the two grand hotels in Son Vida, I trust, that works for the necessary canalisation will begin in 2018.
Should one invest in Son Vida despite the building freeze?
The prices will continue to increase due to the deficit in supply of plots. And once the canalisation will be renewed by 2019 or 2020, Son Vida will most probably be the only area in the Southwest with valuable building plots. That’s why I highly recommend you the following: Don’t wait too long and secure some plots, even if you might have to wait 14 - 20 months to obtain the building license, as during that time you can still make good business.
Is there a building freeze in the municipality of Calvià to?
Yes, until the 2nd November 2018 and probably beyond. We are hoping to receive the new development plan from the municipality of Calvià by that date at the very latest.
Further information regarding this subject can be found in the official bulletin of the Baleares, the BOIB no. 134 of 2nd November 2017. We’ll gladly send a pdf-copy of it to those interested in the bulletin.
What is the prediction despite or because of the building freeze?
The popularity of Mallorca as main residence or secondary residence remains high, hence prices for luxurious properties will continue to increase due to the excess demand, i. e. there are more prospective buyers than purchase objects. The building freeze in the most lucrative locations of the island forces up prices additionally. That means, that we count with another record year in 2018 for transactions regarding villas for above 2 million Euros in the Southwest.