Property
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www.theolivepress.es
Issue 25 November 2018
www.theolivepress.es
November 22nd - December 5th 2018
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ON YOUR BIKE: The Olive Press takes a cycling tour through rural Calvia, see page VI
Divine inspiration
ANGELIC ARCHITECTURE: A Madrid architect has won an award from the RIBA for his unique take on religion, see page XXXIV
Massive growth in buyers from abroad, with the British leading the way despite Brexit fears
Foreign fireball
AN avalanche of foreign buyers is setting Spain’s property market on fire! A total of 53,359 homes were acquired by foreigners in the first half of 2018. The massive figure dwarfs the 33,000 sales recorded in the same period of 2007, when Spain’s property market was at its peak. And, no surprise, the British continue to lead the way, accounting for a record 7,613 purchases, up 8.8% on 2017. That’s according to the latest official figures from Spain’s notaries showing that 14% of all foreign buyers were British.
Second up come the French, who bought 4,211 properties (a drop of 5% on last year) and the Germans, who bought 4,138 homes, some 2% less than last year. When it comes to buying trends it turns out that the Irish, Danish - and most interestingly, the Moroccans - are the fastest growing nationalities. Spicing up the market, Moroccans bought 3,662 properties, a growth of 29% on last year, while the Danes were up by 18% and the Irish 25%. Romanians meanwhile continue to be a strong market having bought 3,872 homes.
Destination-wise, Valencia was the favourite province for investors, accounting for a third of all foreign sales, with 15,613 sales. It was the region with the highest year-on-year growth at 16.7%. Andalucia came in second with 8.2% of the foreign market (9,737 sales), followed by Catalunya with 7,570 sales, unsurprisingly a 5.3% decline from the same period last year, much to do with current political tension. The fifth highest destination was Madrid, where foreign market sales increased by 5.4% (4,911 purchases).
II8
November 2018
PROPERTY
November 22nd - December 5th 2018
www.theolivepress.es
The holiday rental laws are changing in Spain, writes Spanish Property Insight’s Mark Stucklin
Rental woes?
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HEN it comes to tourism, Spain is a superpower with more than 75 million visitors each year, outstripped only by France and the USA. Millions of visitors have long appreciated the sunny welcome they get. But tourists need places to stay, which means they compete with locals for accommodation where it is scarce, and are thought to be driving up housing costs in some tourist hotspots, according to local politicians and housing activists. This is leading to a clampdown on holiday rentals in areas where housing costs are now a hot potato, and where the tourist welcome isn’t quite so sunny. But holiday rentals are frequently part of the game plan for second home buyers looking for extra income from their investment when not in residence. Platforms like Airbnb are making it easier than ever to reach holiday rental clients, and many owners are taking full advantage of this, but the risks of falling foul of changing rental laws are growing. Holiday rental restrictions are tightest in the Balearic and Canary Islands, where some sort of restrictions have been in place for more than a decade, but are now getting tighter. A
powerful hotel lobby is ready to make on tourist rentals in all apartments the most of anxiety about housing and semi-detached homes, though costs for locals to stamp on what they detached homes can call ‘unfair’ competinow get a licence once tion from holiday rentagain. In the rest of als. The fines for the archipelago, it will The Balearic regional be difficult, though illegal tourist government has renot impossible, to get cently introduced a apartment rental lirentals have new tourism law that cences, whilst rural vilrisen to up to restricts holiday rentals las on rustic land will to certain areas and no longer be eligible. €40,000 types of property. PalThe authorities seem ma de Mallorca, the to be getting more Balearic capital, is takserious about busting ing a hard line with an outright ban rule breakers, and the fines for illegal
tourist rentals have risen to between €20,000 and €40,000, so it’s getting riskier to ignore the regulations. The restrictions in the Canaries are more confusing than most, which is saying something in Spain. Bizarrely, the latest draft law on tourist rentals in the Canaries aims to stamp them out in areas defined as touristic, but not in other areas. That measure has the fingerprints of the hotel lobby all over it. In other tourist hotspots, Barcelona already has a moratorium in place on new holiday rental licences, and Madrid is looking to follow Palma towards a total ban in the city cen-
tre. We are moving towards a patchwork of outright bans or restrictions on days per year and other obstacles depending on the region, so a typically Spanish legal mess. Fortunately, for the time being at least, holiday rental restrictions are some of the lightest in the most popular destinations of the Costa del Sol (Andalucia), and the Costa Blanca (Valencian Community). In both regions, you need to register your intention to engage in tourist rentals with the local tourism office, and in Andalucia meet some basic requirements on the condition and features of your property, but there are no impossible hoops to jump through, and no restrictions by area. But even in areas where restrictions have been in place for years, there are ways around the rules if you are careful. In the Balearics, for example, you can still rent on a short-term or extended stay basis (3 months or more) so long as you are very careful not to offer the property as a tourist rental with services for tourists, claims local legal expert Will Besga. “Just like under the previous law, the Spanish Tenancy Act allows for the renting out, in principle for any period of time, of any type of property,” explains Besga. “But because there is a regional law regulating touristic rentals, extreme care must be taken in ensuring that the short-term rental does not fall within the touristic rentals’ parameters, which effectively means that ‘short-term lets’ can be done under certain limiting conditions.” The trend is likely to continue towards restrictions in all hotspots where accommodation is scarce, in particular, the islands and Barcelona.
CG Property C/ Julia Bujosa Batle, 6 07184, Calvía Mallorca Tel: (+34) 971 670 300 Mob: (+34) 628 196 939
www.gc-property.com
Calvia – 845,000€
ref: CT30
A fantastic house close to the centre of Calvià and yet on a very quiet and private street. The house sits on a plot of 1,300m2 with 240m2 of living area, 26m2 of basement and 80m2 of terraces. Upstairs there are 3 bedrooms and 2 bathrooms (1 ensuite) and a terrace with exceptional views towards the countryside and mountains. Downstairs is the living room, dining room and kitchen. In addition there is the conservatory, bathroom and large bedroom. Outside there are extensive grassed areas along with a pool and bbq. The property also boasts parking for 4 cars (car port for 2 cars), a basement, gas central heating, a/c and fireplace.
Es Capdella – 2,500,000€
ref: CAP25
A lovely family finca in Capdella with a very large urban plot. The plot itself is 3,277m2 and is 100% useable, flat and private. The traditional stone finca is situated in the middle of the grounds and was built in the 1800s. There are views all around of the mountains. The house has a total of 5 bedrooms and 5 bathrooms. There is a brand new kitchen, huge living area and a games room with pool table etc. Outside there are huge covered terrace areas, a private pool and lovely grassed areas with mature trees. Other features of the property are storage, covered parking, central heating, a/c and its own water supply.
www.theolivepress.es
November 22nd - December 5th 2018
9III
November 2018
Pink party raises €9,000 THE islands’ biggest real estate portal has raised over €9,200 for needy children in Mallorca. Real Estates United joined up with Spectrum FM to raise the money for the JoyRon Foundation at a charity bash in Portals. At the party at the OD Port Portals hotel hundreds of people wore 'a splash of pink' and partied the night away with live music. “It was a fantastic night with well over 250 guests,” said Real Estates United boss Donna Suarez, from Shropshire, who has lived on Mallorca for two decades. “It all went smoothly and it was great to make so much money for a good cause The JoyRon Foundation is working with Children in Need to build an activity centre for a children's safe house in Palma, helping traumatised children recover. Real Estates United has over 80 members, including lawyers, construction companies, with the majority agents, who work together in collaboration for both buyers and sellers.
High-rent lifestyle THE average worker in Spain is forking out almost 50% of their earnings on rent, shocking new figures have revealed. A surge in demand has bumped up the national average rental price by 15% in just one year, while wage increases trailed by a measly 0.6%. Tenants in Madrid and the Balearics were left most out of pocket, with rent swallowing around 70% of their income. In Valencia the figure was close to 60%. Those in Catalunya, the Canary Islands and the Basque Country see close to 55% of workers’ earnings going on rent.
Pedro Sanchez orders banks to pay stamp duty tax but battle might not be over BANKS will pay the stamp duty on mortgages, not the buyer, a decree by Spain’s prime minister has ruled. It comes after a busy couple of months for Spain’s flipflopping Supreme Court, which couldn’t seem to make up its mind on the controversial tax, which sees up to 2% of the full property price paid to the notary. After ruling in October that banks should pay the tax since it benefits them - it
Mortgage mayhem reversed the decision following an outcry from the lenders in November. The banks claimed the up to €17 billion they would be forced to pay back if the
ruling covered backdated stamp duties over four years, could lead to a crisis. Podemos leader Pablo Iglesias blasted the decision, saying on Twitter: “The
Home for high flyers
BACK TO THE FUTURE: British home to feature first landing pad for €1.7 million flying cars
IT’S the first-world problem facing the super rich of the future; where will I park my flying car? Look no further than Nottingham, where the world’s first home with a landing pad for airborne vehicles is under construction. It’s no flight of fantasy. The pad is being built in Edwalton village at the £10 million (€11.5 million) home of property developer Guy Phoenix in partnership with VRCO, a British company working on a flying
car design. The electric powered NeoXcraft two-seat vehicle, which will cost a cool £1.5 million (€1.7 million), will be able to zip to London in half an hour and VRCO expects to have a prototype in the air next year. The pad is six metres in diameter and has a renewable energy source to recharge the aircraft. It will be included in the asking price for the home, called Hermitage, when it goes on the market early next year.
banks have won and citizens have lost.” But just a day later, Spain’s new Socialist prime minister criticised the Supreme Court for yielding to the banks and not acting in the interest of the people. He signed a decree ordering banks to pay the full amount of the tax. But MPs are calling for the decision to be made into a bill and be voted on, since it concerns the law of Spain.
Fail Known as the AJD tax in Spain, it allows banks to start foreclosure proceedings should the client fail to keep up with mortgage payments. For the past 23 years it has been the norm in Spain for borrowers to pay the tax.
Healthy changes THE LUXURIOUS four-star Lindner Golf and Wellness Resort is undergoing a huge €6 million renovation this winter. All rooms at the hotel in Portals Nous are being redesigned and updated, with the addition of ten new rooms – all keeping with the popular Africaninspired theme.
Exotic 'Fresher, more open and more exotic' is the motto of the planned renovations. The current breakfast room will be transformed into 'vinotheque' – an open-plan bar with local wines.
Green light A BUILDING licence has been granted for ten new homes, a ground floor shop and a parking lot on Palma’s Paseo de Mallorca. Palma City Council has granted the licence on the basis that the developers use some of the features for the original building which has now been demolished. This includes antique windows that will be reused in the lobby of the building.
Let us guide you home Real Estate | Immobilien | Inmobiliaria
www.themallorcadeal.com | +34 971 961 057
IV 10
November 2018
PROPERTY
November 22nd - December 5th 2018
www.theolivepress.es
Architectural award special
Madrid masters CREATIVE: Emilio Tunon
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Leading Spanish architects scoop top British award from the RIBA
WO Spanish architects have been awarded a ‘lifetime honour’ award by the presitigous Royal Institute of British Architects (RIBA). Ignacio Vicens y Hualde and Emilio Tunon are among seven laureates set to receive 2019 International Fellowships at a ceremony next February. The lifetime honour recognises the contributions
of architects internationally and allows recipients to use the initials FRIBA after their names. Tunon, of Tunon and Ruckstuhl Architects in Madrid, has taught in universities around the world and was previously awarded the Gold Medal of Merit in Fine Arts from the Spanish Ministry of Culture. Hualde, head of Madrid-based Vicens + Ramos
CONGRATS: Ignacio Haulde
Architects, has also taught across the Americas and Europe. His notable works including the School of Communications at the University of Navarra and the Churches of Rivas-Vaciamadrid. Together they are changing the skyline of Spain and Andalucia with their iconic structures. We delved into their portfolio of projects, completed or underway, to bring you the highlights.
Atlanterra style Church of Ponferrada
On a steep slope overlooking Playa Alemanes, in Atlanterra, this majestic 400 m² house will be carved into the land through a set of horizontal platforms, protected from the wind by thick concrete pillars. The top floor of this Tunon creation boasts stunning views over the ocean and houses a kitchen and master bedroom. The lower platform houses the pool surrounded by thick pillars, with parking on the floor below.
Another divine inspiration has been this imposing modern church in Ponferrada. According to Haulde, the church’s main space is designed as a meeting place ‘for the joyous celebration of the Sacrifice.’ Its layout emphasises community and is littered with symbolic references while the design ensures that the altar, Holy See and pulpit are visible to the entire congregation.
Valladolid Wine Dome This proposed design is set to rise up on the banks of the river Duero, replicating the neat rows of the surrounding vineyards so precisely it’s almost invisible. Incredibly spacious inside, the Wine Dome is a basic structure of 86m2 with a square courtyard in the centre inspired by medieval monasteries which, according to architect Tunon, ‘treasured the wisdom of wine production’.
Church of Santa Monica The Madrid-based studio by Hualde was commissioned to create this Cubist-style place of worship for the quickly ballooning population of Rivas-Vaciamadrid, a new residential development 10 miles from the capital. The church has a linear design to make the most of the plot and provide maximum capacity. The building also contains management offices, classrooms and accommodation for two priests.
www.theolivepress.es
November 22nd - December 5th 2018
Curious yellow
V 11
November 2018
Is it a balloon, a zeppelin or a yellow submarine? No, it’s an ultralight pavilion dreamed up to promote Spain at the next world EXPO ULTRA MODERN: The nine inflatable canopies will thrill visitors in the Middle East
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WO Madrid architect firms have joined forces in a bid to design Spain’s National Pavilion for EXPO 2020 in Dubai. Their incredible design includes an inflatable canopy of nine custard yellow cylinders set within a steel framework. The ‘breathing pavilion’ design allows two inflatables to move the cylinders up and down to respond to views, light and breeze. Reinterpreting a typical Spanish plaza, the
project includes an elevated square underneath inflatables with room for diverse programming and installations. According to Arch Daily, the shaded space is is designed to adapt to the climate of Dubai with natural thermal conditioning. Below, a matrix of large fans will move air to accompany the gentle breeze generated by natural wind flow. There will also be a restaurant and tapas bar, mixing gastronomic experiences ‘with spatial and sensory stimuli’ - not unlike
squares and famous steps across cities in Spain The pavilion is designed to emit zero emissions with the help of 1,000 square meters of rooftop photo-voltaic panels. In turn, the design team designed the inflatable deck with more than 80% certified recycled materials. The ultralight pavilion aims to be a more sustainable structure that could be easily removed and transported as it takes on other lives after EXPO.
#ClimateChangeIsReal
THERE IS NO PLANET B
Only Mallorca Real Estate - Here to make a difference
onlymallorca.com
VI 12
November 2018
PROPERTY
November 22nd - December 5th 2018
www.theolivepress.es
Rental crisis caused by tourists
Inspection
Pollensa looks at ways to get cheaper rents
A PLAN to encourage owners to rent out nearly 300 empty homes in Pollensa is unlikely to solve the town’s acute housing crisis. While a study has discovered at least 268 vacant apartments and houses in the town, owners would probably not agree
A FINCA with over 550 acres of olive groves in the heart of the Tramuntana mountains has gone on the market for €9.5 million. The seven-bedroom historic stone farmhouse is surrounding by olives and natural woods, and beautifully landscaped gardens. The views of the sea and the north of Mallorca are spectacular. Inside you’ll find beams of natural wood against white walls and local stones. The property also has a barn and a hunters lodge with room for expanding. The estate is on the market exclusively with agents Engel & Völkers.
to rent them out at affordable prices. It means that locals will continue to find it almost impossible to rent in Pollensa and will continue to have to find homes elsewhere, such as in Sa Pobla. The issue has worsened after it emerged that the town has
the second highest number of tourists per resident in Europe. There are 25 tourists to every resident in the town, which is only beaten by Ibiza town, which has 26. In addition, the number of tourist rentals available in the area has almost doubled in the last seven years, and now exceeds the number of hotel beds. According to a study by the University of the Balearics (UIB) the town has lost 1,100 residents since 2009, which is having a negative impact on the town. The UIB study concluded that the town must guarantee affordable housing, and suggested either creating social housing projects or letting families fix-up old apartments as partial payment for rent.
Mountain acadia!
Jon Clarke (left) takes an E-bike on a village and property trip around of rural Calvia ADVENTURES: Olive Press’ Charles and Jon head inland towards Es Capdella
I
FELT hardly out of breath as we arrived at the pretty church in the heart of the sleepy village of Galilea. Yet, we had peddled mostly uphill the whole way from Son Bugadelles industrial estate, some 15 kms away. Like riding in Doctor Who’s tardis we had arrived at the 460m high village in less than 45 minutes and had a chance to take in some of the best scenery on the island en route. Let me explain. The incredible experience was all thanks to a pair of electric bikes myself and Olive Press Mallorca sales rep Charlie Bamber had rented from Yes We Bike.
STUNNING: Calvia is full of surprises
It’s owner Oliver Wienrich had pointed us Even bette ning signs in the right direction and off we went. Heading initially inland towards Calvia, we keep an e quickly took a turn off to the village of Es In 20 min Capdella - and within five minutes we were pdella, a Tramuntan in stunning countryside. Whichever of the three settings on the bike excellent we used completely took the edge off the starred re hills and while we still had to pedal - and There are ultimately workout - we could go about twi- traces her ce the speed and distance we would have from the normally riden. alongside The plan was to visit some of the most scenic corners of the Calvia district… a comAnd like a plete contrast to the nearby timewarp, we famous touristy resorts of Magaluf, Santa Ponsa and were soon Portals Nous. Recommended the route by pedalling throug Calvia estate agent Justin a leafy valley Pardon, of GC Property, we got to see exactly what a contrast the area of Calvia offers to tourists and property buyers. east. It’s a And like a timewarp, we were soon peda- king its hu ling through a leafy valley with amazing From here country properties on both sides. sharply up Best of all was the way cyclists are catered breathtak nal views for in Calvia. An easy-to-follow route there were plenty We were of cycle lanes and an amazing number of UNESCO cycling signs every few hundred metres, minutes l made our ensuring you don’t lose your way.
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November 22nd - December 5th 2018
Calvia – 845,000€ A fantastic house close to the centre of Calvià and yet o street. The house sits on a plot of 1,300m2 with 240m2 basement and 80m2 of terraces. Upstairs there are 3 be (1 ensuite) and a terrace with exceptio nal views towards mountains. Downstairs is the living room, dining room an there is the conservatory, bathroo m and large bedroom. grassed areas along with a pool and bbq. The property a cars (car port for 2 cars), a baseme nt, gas central heatin
ARRIVAL: At Galilea church (left)
church, where conveniently the Cafe Sa Placa awaited for a tapa and a cold beer. It’s a charming spot, sitting by the celebrated Galatzo mountain, which is said to be magical and the church dates back to 1806. From here, it was all mostly downhill - and the big surprise was how chilly it got on a late afternoon in November, particularly taking into account the wind-chill factor. That said, this was one of the most enjoyable cycle rides I have ever taken and, thanks to Yes We Bike there are plenty more routes to be taken nearby.
YES, HE DOES: Oliver
November 2018
Rural dreams
n tour
er, were the number of clear wars for motorists to slow down and eye out for us. nutes we were arriving in Es Cacharming town, nestled in the na foothills and home to some shops and even a two Michelinestaurant. e plenty of Arabic and Roman re and a good mix of properties, well build stone village houses e stylish modern homes. It’s a very international community, which helps to keep it alive throughout the year, and there are a number of top hotels nearby, including the stunning restored castle hotel of Castell Son Claret which dates gh back to the mid-1800s. We found this amazing spot sitting in its own valley, as we took the MA-1032 towards Puigpunyent heading north amazing line of palm trees maruge gated entrance. e, the road started to wind more phill, until we found ourselves in ing pine woods, with the occasiodown towards the coast. e now inside the Tramuntana protected area, and some ten later we arrived in Galilea and r way to the main square by the
VII 13
E-bike company Yes We Bike rents bikes on an hourly, daily or weekly rent from its base in the Son Bugadelles Industrial Estate, in Santa Ponsa. “It’s a great way to see the island,” said owner Oliver Wienrich, who has lived in Mallorca for decades. “They are the future, a fabulous way to see more of the island and a great way to commute to work,” added the German businessman. His team have now developed a series of routes for clients to follow around the island. The four exciting routes are
Yes, they can
STUNNING: Amazing €1.79m finca near Es Capdella
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HERE are some amazing places to buy in the inland Calvia area. And there’s something to tailor almost all budgets, explains Justin Pardon, boss of GC Property, whose agency has been covering the area for over a decade. “It’s a really pretty area, very rural but also well located for international schools and Palma,” he explains. “While international in feel, the villages are still Spanish and you can quickly get off on some amazing walks and cycles,” he adds. Es Capdella, in particular, is ‘well sought after’ for its handful of good restaurants and its excellent municipal outdoor pool, which is a real magnet in summer. Galilea, in contrast, is a fair bit cheaper, being further inland and out of the way. “But it is picture perfect
LOCATION: Four bed home costing €845,000 in Calvia village
READY TO REFORM: 3-bed villa in Galilea at €495,000
with amazing sea views and yet still close to all the key parts of the South West,” adds Justin. Calvia remains a very solid investment, while Son Font is an amazing location with views. Here are four properties for sale via GC Property, which can be located at www.gc-property.com
simple to follow and can be easily accessed via a mobile phone. Loaded onto any phone via the scan of a QR code, they then give detailed instructions for each route. The company specialises in sales and rentals of electric bikes of all calibres and budgets. Visit www.yeswebike.es for more information
LUXURY: Amazing six-bed villa in Son Font comes in at €2.95m
Carrer de la Galera 1 • 07002 Palma Tel.: +34 971 721 898 • service@inm-immobilien.com • www.inm-immobilien.com
HELPING YOU FIND THE PROPERTY OF YOUR DREAMS.
Your Volker Schug
Hotel in Majorca's wine-growing region
Finca Hotel, Seminar and Event Hotel. The finca hotel, built in 2002, extends over 29,230 sq.m. On 1400 sq.m. of living space and 1,886 sq.m. of floor space there are 14 rooms, reception area, event areas plus an additional residential side building, pool and air conditioning Price 1.895.000 Euro
Typical apartment building in Palma‘s old town This house in need of renovation has 8 residential units with approximately 643 sq.m. of living space on 103.m. floor space. Roof, electricity, wáter and sewage already renewed. Current rental income € 53,000 after renovation > € 100,000. Old leases without long notice periods. Price 2.200.000 Euro