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SPAIN - Real Estate & Construction

Mandy Fletling

Owner, Living Blue Mallorca

Bio

Mandy Fletling is the Owner of Living Blue Mallorca, a trusted real estate partner for property sales, purchase, and long-term rentals island wide.

"Buyers in Mallorca have traditionally come from northern Europe, but Living Blue Mallorca is seeing new nationalities purchasing more, such as the French, and even more distant markets such as the US, South Africa, and Australia."

Mandy Fletling, Owner of Living Blue Mallorca, talks to TBY about the evolution of real estate demand in Mallorca.

What is your assessment of the current foreigner appetite for luxury properties in Mallorca?

Currently demand is even stronger than two years ago before COVID-19. 2019 was our peak year, and the pandemic was a major blow to the industry, although since June 2020, the business has been growing rapidly. Demand rose, as did prices and sales. When we talk about Mallorca, we talk about a sellers’ market, which brings a different scenario to our work. Formerly real estate was more focused on buyers, yet there has been shift to sellers, given the scarcity of properties and high demand. Good products are being sold quickly and there are not so many such properties coming on the market. Suddenly we are selling properties we have had for years for the asking. So, the scenario has changed. What is popular now is new buildings, country houses for example, and we are focused on those. If the quality is good and it has been completely refurbished, even new builds in traditional styles are selling for high prices, perhaps 40% over the prices we could have achieved three years ago. Buyers are making decisions more quickly than before and are investing in a lifestyle and especially privacy. Country houses have become more interesting, because of the outdoor space and as they can feature their own water and solar panels and be wholly off grid. This is appealing to many international investors.

How do you work hand in hand with clients in such a competitive environment?

Living Blue Mallorca is focused on the areas where our offices are located. We have a team of 20 people and live where we work, whereby we can give a good market overview and explain exactly what’s on the market and where prices are moving. Since many people cannot fly back and forth as before due to restrictions, we do a lot of online video viewings. We also provide the papers upfront so clients know the legal framework and have a clear idea when they come here.

What is your opinion on the best options for investment in Mallorca in terms of the highest potential for a return on investment?

If you buy to make a profit, I think the best option in our area is to either buy property to refurbish or a plot of land for a new build or complete reform. This is where the demand and profits are. For example, Living Blue Mallorca has sold a plot on the island for a country home for EUR1.3 million, where the client put in 1.5 for refurbishment and is now selling for about EUR7.5 million.

How is the profile of the traditional buyer of Mallorcan properties changing?

Buyers in Mallorca have traditionally come from northern Europe, but Living Blue Mallorca is seeing new nationalities purchasing more, such as the French, and even more distant markets such as the US, South Africa, and Australia. Most are seeking something they can move into without much refurbishment. Outside Palma, investors can simply purchase, renovate, and sell given the sheer demand. We are seeing many investors buying and carrying out refurbishment works to sell an entirely new home.

What is your advice to potential investors regarding the real estate market on the island?

First, there are considerations such as the location, which may require specific planning permissions. It is always good to get the legal part and the paperwork sorted right from the outset to avoid issues in the future. Even though prices have risen, local investment are still a solid investment proposition. Prices are high, but have not reached the levels of major cities such as Munich, Paris, London or regions like California. In 10 years, this will be a hot spot as an international investment and lifestyle destination as prices have yet to peak. I have been here for 22 years, and the development of the destination is enormous.

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