It was already indicated in 2020: Little is happening this year Real estate market in Mallorca. And especially for them local population it looks bleak when it comes to affordable housing. The president of the island’s developers Luis Martin, pointed out. Because the financial situation of many families in Mallorca is affected by the Coronakrise have tightened, young people in particular are currently barely able to take out a mortgage and thus pay off an apartment. That’s why they put Construction companies the island this year stepped up on the Second home marketwho mainly by wealthier foreigners is served from Northern and Central Europe.
The demand from these regions is still stark, says Martín. The result: the construction companies rely on properties with a price of 350,000 euros and up. Many projects that hold the prospect of cheaper apartments are currently being parked. For the population on the island, especially young people who want to buy their first apartment, this venture will be almost impossible. At a price of 350,000 euros come again about 14 percent additional costs in addition, so that the price is then just under 400,000 euros. Since banks usually have a maximum of about 80 percent of the purchase price as a mortgage potential home buyers must have saved at least 80,000 euros – something that hardly any young person on Mallorca can manage.
The crisis has affected the economic situation of many families in such a way tightenedthat more and more people are trying to get out of already concluded sales contracts because they have the credit can not operate. To make matters worse, the banks no loans to short-time work or time off affected employees. One or the other construction company has already got into trouble because it relied on the local market, but demand there has collapsed.
Luis Martín also draws attention to a problem that is likely to accentuate in the coming years. If activity in the construction industry ceases in 2021, it will take several years before it can fully resume. Main reason for this: the long waiting time for building permitswhich are often a year or more. / jk
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