Land and Estates in Majorca
Estates in Majorcarepresent a very small percentage of the real estate market because the arable land on our island is in high demand. This circumstance affects entrepreneurs with desire for expansion as well as private individuals, who desire to build a residence on Majorca. The problem is intensified by the Majorcan land law, with its special features.
There are two types of land in Majorca, which can be classified according to the geographic location into rural and urban land. Rural areas are often placed within nature, nestled in a charming environment. This kind of estate is highly appreciated and sought whereby its privacy and its location are the main attractions. In dependence of the size of the estate there might be some construction limitations imposed on the property. An already existing building might cause additional structural restrictions, too. These potential construction restrictions are even affected by the mere existence of a pond, a mill or a tool shed. Therefore professional advice is highly recommended in this area!
Urban landis subject to the regulations of the communities. The typical usage of urban estate is by building various forms of privately used houses. The design possibilities range from whole neighborhoods to townhouses. Sometimes, when the land price or investment is very high, the partners can negotiate a settlement by pure barter transaction or a combination with partial payment in cash. In such a case the investor has not to pay the whole sum and the owner takes advantage of a future profit.
A curious situation arises when an investor wants to buy a plot of land and there is no offer for it. Depending on the business project, he must buy one or more estates with already built properties to then tear them down and implement its project ideas afterwards!
Shores, valleys and mountains of Majorca are the ideal places where some of our most beautiful plots are found. The peace and tranquility are overwhelming and substantial advantages of this land, often located near the coast. The impressive view of the sea on the horizon leaves no one untouched. Even in the mountains, the sea is omnipresent; the spectator is totally being enchanted by Mediterranean nature!
Even today one finds building land in the old town of Palma and in streets and markets of urban settlements. If the property is in a residential area the quiet green spaces and the easy accessibility of services are the core benefits.
When you buy a plot in Majorca the proximity of the property to the airport of Palma de Majorca should always be taken into consideration. The comprehensive infrastructure services (e.g. car hire, national and international flights) represents a significant value for the property itself. The Airport allows traveling from and to Majorca during the whole year which is definitively an important factor for owners of holiday properties in Majorca. Also consider the simple accessibility of the nearest beaches. They represent a particularly high value for visitors of Majorca, either for typical holiday visitors or for holiday property owners who spend much more time on the island.
Traditionally, plots on Majorca only existed in the urban area, at least in the modern sense of the word. Originally, the houses were built with a single, occasionally with two floors. The most important elements of these houses were a small garden for the cultivation of fruits and a neighboring building for the animals. In this way the houses, especially those villages, possessed much ground. Unfortunately, a large number of these beautiful possessions were sold and torn down to make way for new modern buildings.
In rural areas there is no significant parceling. Estates are united in the hands of a landlord. The allotment of recent years has dramatically changed the map of Majorca. Residential areas were realized in the countryside, where previously only trees and fields were found.
4. Pros and Cons
For the private investor the location of the property is of significant importance. Commercial investment activities of course focus, beside the location, on the project’s goals. These two perspectives motivate personal, institutional and commercial investors to buy an estate in Majorca.
It should be noted that additional costs arise which are not included in the price. Especially infrastructural costs such as for gas, water, drinking water, electricity, telephone, etc. have to be named!
5. Perspectives and Investor Relations
Buying an estate is always an investment into the future. The value typically increases over but in critical economic times expectations in the profits are not realizable at the desired level.