What is the truth in buying in 2023? Property reports tell us that the market is rosy. Real estate agents say they can’t keep up with the demand. And buyers, many of whom arrive with strict budgets, are struggling to find what they’re looking for. Have we reached a point where buying power – now officially – outweighs supply? Lucy Adamson from hc/ Mallorca Living Centre is here to reassure, giving her advice to those who are feeling despondent about rising prices and limited supply in some areas.
Bigger disposable income
When all the right elements come together, searching for a property in Mallorca is smooth sailing. A budget above a million euros helps, alongside a few months of patience and a good property specialist by your side. However, nowadays buyers are struck by how many others are looking to buy property. Gone are the days of arriving in somewhere like Deiá and scooping up a Tramuntana hideaway for a couple of hundred thousand euros. Beautifully simple as the Mallorcan lifestyle is, it is sought-after and buyers from outside can’t get enough. “The demand is high, yes, but I think it’s always been high. The difference now is in the amount of disposable income, it’s far greater than it ever was,” says property specialist, Lucy Adamson. A recent villa she’s been showing clients this past week is used as an example. “We’ve got a property in Bendinat on our books for over 11 million euros that is second-line to the sea,” she says, “I would say it’s a big ask but the market is biting – I think it’ll be sold soon.”
Must-haves vs. nice-to-haves
Outside of areas like Bendinat though, Lucy maintains that hidden – and less expensive-gems can be found in the outer areas. The southwest is competitive because of its international schools and proximity to Palma, but head slightly in-land to some of the quieter villages and good-sized villas can be found. “If the budget isn’t stretching far enough, take a look at your must-haves and nice-to-haves. If you want a sea view then maybe adjust on your number of bedrooms or if it’s a pool or garden then consider looking at other areas,” she says, having helped many buyers in this situation. Flexibility, she emphasises, can really help.
Lucy responds differently when we ask about buying a property with a holiday license. She inhales softly. “It’s a different ball game since the government froze new licenses. They’re like gold dust now. If you’re looking to start a hotel or rental business, my advice would be to hire a property concierge service. You need a good person on the ground talking to all the real estate agents,” she says. Despite common feelings of despondency from buyers looking for that special somewhere, Lucy maintains that there is hope. “Mallorca is small but never give-up on your dream home however long you’re looking for. Gaps in the market still exist. Take your time, get a good property specialist and be clear on what you want,” she says, before picking up the phone. Another buyer is at the end of the line awaiting to hear good news. “Yes, it’s still available,” she says, with underlying relief. Judging from Lucy’s smile, the feeling is more than reciprocated.
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Text by Rosie Foot
Photos by Pernilla Danielsson