The real estate developer returns and buying off plan increases
During the years of crisis the figure of the real estate developer, who drives, finances and builds to sell, had practically disappeared. The construction of these types of projects was paralyzed and confidence in the investments shivered. Good news, things have changed. We are now back to seeing construction work, banks ready to finance and customers willing to buy off plan. For all of this we can affirm that the real estate developer is back!
Most real estate developers are new and innovative companies that have taken good note of the excesses committed during the real-estate bubble and that now act with caution. Together with the sector, they have become more professional and are here to stay. They seek to make a difference by adding value to promotions through community services and energy efficiency. Don´t be surprised to find from a gym, a movie theatre or a gourmet room to an area of electric car recharge. In Majorca this return is confirmed with projects of both first and second residence. The old town of Palma, Son Vida, Son Quint and Bonanova are the main areas in construction of first residence and those with more tourism like Portals, Bendinat or Cas Catalá are centred around the second.
The clients are, in most cases, foreigners, although we begin to see some locals. Their confidence has not disappeared but they are more demanding and careful. They look for real estate advice and are informed before buying, which has also set high boundaries for the promoters. They start to buy off plan, a fact that confirms that things are back to normal. This way of purchasing gives them more time to save money, an advantage that many don´t want to miss.
The relationship between financial institutions and real estate developers is another key factor in their return to the sector. The banks study carefully if the projects are well located, properly managed and if the developers have experience. They have to believe in the project and when that happens, which is happening, the demands decrease. This change in the access to credit, one of the biggest obstacles for real estate developers, opens the way to recovery.
It’s time to enjoy the good news and look forward, the future is promising!!