What is the best song you’ve ever released and

HOMES & PROPERTIES

Property Market Update

BREXIT IT IS THEN! A new year, a new decade and a new future ahead of us! With the election now consigned to history and Boris firmly in the driver’s seat, we finally have much of the Brexit uncertainty removed with the knowledge that 2020 will now be the year Britain leaves the EU, like it or not! In Churchillian terms, this is perhaps only the end of the beginning, with a great deal of negotiation still ahead. The Withdrawal Agreement Bill has to be agreed before January 31st and a security and law enforcement agreement then needs to be passed. If this still ends in a stalemate situation and no deal by the end of June, then the UK still faces the prospect of leaving without a deal at the end of December 2020. Any which way one looks at it, our roller coaster ride is not quite over with uncertainty – albeit lessened - continuing for the foreseeable future. How this will affect the British appetite for property in the Balearics remains to be seen, but it is unlikely to have much in the short term, despite the improved exchange rates and clearer direction since the election.

MALLORCA REAL ESTATE MARKET – 2019 YEAR IN REVIEW According to the National Statistics Institute (INE), the official real estate sales figures in the Balearics for the market as a whole were down on 2018. The biggest dip in sales was in July with a 21.9% drop and September showing a drop of 13.9% compared to 2018. The only positive increase for the year was in May, showing a 4.6% rise. Official figures are not yet out for the final quarter and although there was a flurry of activity in the fall with substantially improved sales figures reported by many, there will certainly be a substantial deficit in property sales. This of course reflects the general uncertainty in the market due to global politics, the shortage of new-builds and low cost housing and the continued difficulties with financing. With a drop in sales, one would normally expect a reduction in prices, but this is not the general trend in the Balearics with a growth in prices of 37% over the past five years, behind only Madrid and Catalonia. The reason for this un-typical market trend is multi-faceted, with one prime reason being the lack of stock and the second key factor being that many owners in the Balearics are wealthy

46 | CELEBRITY MALLORCA second home owners and local Mallorquin owners without the need to sell, with an attitude of “que sera sera”….. if I sell, fine - and if I don`t, I’m in no hurry. Mallorca continues to strengthen its reputation as a high end destination, building on its offerings with its strong well developed infrastructure, high end services including 7 Michelin Star restaurants (holding 8 stars) and a plethora of five star hotels opening in the last few years, supporting tourism all year round. A tourism powerhouse, Mallorca sits firmly within its own unique real estate bubble, remaining comparatively stable even amidst global financial crises.

MALLORCA REAL ESTATE BLOG For me personally representing predominantly British buyers, 2019 has been a proverbial roller coaster ride. But the year has ended on a high. I was fortunate enough to be given a rather special property in Old Bendinat in early autumn as an exclusive sales listing. Many home owners would not make a choice of this sort, giving a property exclusively to a single agent in the Mallorca real estate market when there are so many agents specializing in so many different sectors. Nevertheless, if you don’t live here and want someone to be fully responsible for managing your property, protecting your interests with multiple agents and viewings, it can be a sanity preserving option with a well chosen agent. At 620m2, the property is a substantial 7-bedroom home in one of the most prestigious residential districts in Mallorca. Immaculate in condition and beautifully presented, it is a very elegant property in classical style with sensational elevated sea views. Having performed a market appraisal, I would have valued it last year somewhere in the region of €9m, with numerous other agents in agreement. However, there are a number of properties on the market at present in this price bracket, more modern in design (currently a general market preference) and which haven’t sold for some time. My owner is wishing to sell sooner rather than later, so we agreed to set it at a keen price of €7.7m, equating to €12.419 per square meter. With the reputation of owners and estate agents in Mallorca setting values at inflated fantasy levels, we anticipated a warm reception, particularly since even in this market, there would be an opportunity to amplify the value of the investment. For an investment of circa €1m for example, it could almost certainly be re-listed on the market in the region of €12m, equating to a currently realistic €19.354 per square meter - representing a substantial profit when sold. I am pleased to report this approach has been well received, and although there are inevitably the dealers and the opportunists who come in making ridiculous (and rejected) offers – interest has been very healthy. We have an interested party’s bank valuation currently in process, and although not quite there yet, I am anticipating 2020 will be starting on a very positive note. (For more information on this property, please see the www.mjcassociates.net, property Ref 19021).

On behalf of all at Celebrity Magazine may 2020 be a healthful, happy year with many magical moments! 2020 here we come!

PROPERTY OF THE MONTH

Stunning sea view villa in Costa den Blanes

Uniquely designed new-built property with exceptional sea views from all rooms. This property consists of 5 bedrooms all ensuite, underfloor heating, Gaggenau kitchen, domotic systems throughout the entire property, pool house complete with Wolf kitchen, infinity pool, double garage, lift and designed gardens with numerous fruit, palm and olive trees, etc

5 beds | 5 baths | 1374 sqm plot size | 517 sqm constructed area

REF: PO504 | € 6,250,000