How does Engel & Völkers define its connection with Mallorca, and what are the primary highlights of its local business?

Our link between Germany and Mallorca extends beyond the company—it’s a fusion of cultures. With 19 offices and an annual turnover nearing EUR500 million, our sales are set to surpass previous records. Surprisingly, despite travel restrictions and uncertainty, 2020 was not a disaster for real estate. This reinforces the island’s solid market reputation. Through rapid digitalization, we’ve streamlined processes, conducting remote visits and compressing the sales cycle significantly. People increasingly invest in their quality of life, fueling Mallorca’s real estate market.

What trends are shaping Mallorca’s real estate business, and what’s on the horizon?

Simplifying the market and differentiating local versus international dynamics is a priority. We focus intensely on detailed local market research, providing crucial insights. Mallorca’s real estate market isn’t reliant on external financing, offering a vast array of products that cater to diverse tastes and budgets. During the pandemic, Palma’s market value remained resilient, contrary to expectations, favoring villages and open spaces. Future challenges include balancing housing access for locals without restricting international buyers, necessitating collaboration between administration and the private sector.

What’s the immediate future for real estate on the Balearic Islands?

Our scope spans commercial, hotel, rental, and new construction sectors, emphasizing resource efficiency and intelligent urban planning. Reconsidering housing sizes, utilizing surplus buildings for social housing or specialized establishments, is crucial. While tourism remains the key GDP contributor, real estate is pivotal, necessitating a sustainable tourism model. Despite a weak season ahead, European investor trust and strategic location will drive investments and stimulate transformation. Upcoming regulations in real estate intermediation aim to elevate service standards and consumer security, supported by Engel & Völkers and ABINI.

How can Mallorca’s real estate sector promote green and sustainable construction?

Historically, sustainability wasn’t a focal point in real estate. However, a growing interest in protecting Mallorca has emerged, especially among visitors who advocate for sustainability. The pandemic prompted a reevaluation of our immediate environment. Entities like the Mallorca Preservation Foundation are essential, advocating for the island’s conservation. There’s a rising trend where companies increasingly invest in sustainability, understanding its value. This foundation channels resources into local conservation projects, preserving the natural beauty that defines Mallorca.