Build to rent takes off

BUILD TO RENT housing developments are taking off in Mallorca.

Several apartment blocks built entirely for letting and not for sale are well underway on the island, including more than 300 new homes nearing completion in the Nou Llevant area.

The build to rent properties currently under construction or in the planning phase in Mallorca are aimed at the luxury and high­income markets, with no plans as yet for lower budgets.

One of the most interesting developments is a group of five apartments built inside a renovated 14th century manor house in Sant Jaume neighbourhood in Palma.

Among the services on offer for the future tenants are a community spa, wine cellar, swimming pool, garden and an exclusive apartment for guests, all for €7,500 a month.

According to the Balearic Islands Association of Property Agents, the build to rent scheme is “vital to solve the problem of lack of property to let in Mallorca.”

However, spokespeople for the association are also wary about the new Housing Law recently approved by the Spanish government that sets maximum limits on how much landlords can charge their tenants, which they fear could make the scheme less attractive for investors.

“When the Catalan housing law was passed, up to 30 per cent of long­term rent properties disappeared in Barcelona” warns association vice­president Natàlia Bueno, adding that the restrictions encouraged many property owners to switch to holiday lets to make more money.

Sra Bueno also points out that the new national law tight­