01 July 08

Property

Property

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The new extension at Port Adriano, raising the mooring capacity from 404 to 486 berths, is expected to increase interest in the popular resort of Santa Ponsa. The west coast is more traditional, buildings are more historic and there is a lot of interest in restoring old properties as they can be bought up for around €385.000.

Last year some regions were more popular with different nationalities - the British were big in the southwest, representing 40% of buyers; 60% of buyers in the northeast were German.

It’s also worth noting that the Jumeriah Group, which runs the luxury Burj Al Arab in Dubai, is building a hotel in the northwest, while improved train and motorway facilities have made the inland region more popular too.

When buying in Palma Westwood has a few tips for virgin purchasers. “Remember that one day you may want to sell – traditional features, outside space and lifts are all desirable. Beware of properties currently with a seaview as there are major plans for a congress centre, hotel and other buildings along the seafront.” Also, a recent study by the Spanish Ministry for the Environment found 730 coastal infringements on the island, which may result in some demolitions. So check that any property you buy is in the clear. Like any overseas purchase the mantra is: research, research, research.

Facts & Figures
AREA: 3,640 km²
POPULATION: 790,763
CURRENCY: Euro
HOUSE PRICES: Kyero reports that while prices for one beds went down slightly, average prices on the island went up by about 10% during the first 4 months of 2008 [www.kyero.com].
RENTAL YIELDS: In Palma rents are an average of €8.75 - €13 per sq metre in the centre, but yields are lower in the surrounding areas [The Property Finders].
AGENTS: The Asociacion Empresarial de Gestion Inmobiliaria [www.aegi.es] or the Association of International Property Professionals [www.aipp. org.uk] are good sources for agents.
BUYING TIPS: Jan Pratt from Shortcut Property Search points out that properties are often listed with multiple agents so if you shop around a number of different outlets you can get different deals for the same property. With over 1,000 estate agencies on the island be sure to pick one that is independent and reputable.
TAXES: Rental income is taxed at 24%, there is an annual registration fee of less than 1%, a 3% annual tax on non-foreign owners and capital gains tax is 18%.

Mallorcan Marvels

From rural ranches to Palma’s duplexes, these properties all offer a great slice of island life

POLLENSA Price: From €850,000 Details: A four-bed stone farmhouse in a quiet area, 5 minutes from Pollensa town with a roof terrace and 16,000m2 of land www.savills.com
	LOS ALTOS DEL GOLF, CAMP DE MAR Price: From€498,874 Details: A new development on the southwest coast, in the heart of the Andratx golf course and consisting of 55 two, three and four-bedroom townhouses. www.chesterton-international.com
OLD TOWN PALMA Price: From €1.3 million Details: A two-bedroom duplex penthouse in the heart of the Old Town of Palma, with a large terrace giving views of the city. www.shortcutspropertysearch.com
	COUNTRY ESTATE, CENTRAL MALLORCA Price: From €13 million Details: An eight-bed country mansion in the centre of Mallorca, with views of the Tramuntana Mountains. www.savills.com
OLD TOWN, PALMA Price: From €195,000 Details: A 50 m2 refurbished apartment with one bedroom and one bathroom and living area with kitchen to be fitted. www.thepropertyfinders.com