“Spain is a worldwide power in the property market”

The third Mallorca property summit was held at the Castillo Son Vida last Wednesday.

Untapped potential in the housing market was approached from the perspectives of both affordable housing and the luxury market. Both suffer from a lack of  available building land.

For Marta Vidal, Minister for Housing, Territory and Mobility, affordable housing is the key to prosperity.

To combat the shortfall in available housing, the regional ministry is cataloguing available land in the towns and industrial areas, considering a possible relaxation of height restrictions and changes of use.

Housing stock

The idea is to generate new housing stock without public cost, through developer associations, although the administration of these is complex and so delays ensue.

The analysis of national and global statistics is clear: Mallorca is trending for luxury developers.

Enrique Lopez from Caledonian construction, based in Madrid, emphasised the potential of the premium sector, which is now arriving in Mallorca. In his view, “Spain is a worldwide power” in the property market.

He says the concept of luxury is evolving and there is a need to create sophisticated luxury which is all about lifestyle, authenticity, and branding: in other words, a recognisable high-end construction brand.

In his view luxury involves the senses and feeling, the use of natural materials such as wood and stone, and orientation has taken on greater importance: a view of a fabulous landscape must be framed, rather than space just filled.

Luxury property in the countryside

Jose Antonio Muro from técnitasa, a valuation consultancy based in Palma, said luxury will be in the countryside. Luxury clients want to buy not just property but outdoor space, for example with olive trees and vineyards. They want to go back 200 years, their experience of the landscape framed with beautiful architecture and design. And villas are getting bigger, as in Marbella, requiring high end architecture and engineering.

According to says Jose Antonio Muro, “Mallorca will probably end up being the next San Tropez, whether we like it or not” and

“The day Spaniards get rid of their inferiority complex, they will be unstoppable”.