1. News from Minkner & Partner
Mallorca's real estate market: balance for the year 2020
Mallorca's estate agents have presented their balance sheets for 2020 in the past weeks and come to very different conclusions: The drop in sales is between 15% and 30%, depending on the market (Spanish buyers, international buyers), the region and the price segment in which they work. A better overall view is provided by the data of the Spanish Ministry of Industry. According to these figures, there were 27% fewer property transactions in Mallorca in 2020 than in 2019, but the transaction volume only fell by 17%. In other words, less real estate was sold, but at higher purchase prices. And brokers who specialise in the sale of luxury properties were the main beneficiaries of this. You can read more about this in our German BLOG post: „Mallorca Immobilien 2020/2021 – Bilanz und Prognose“
- you are invited to use the extensive network of Minkner &
Minkner & Partner has built up an extensive network in almost 30 years of successful activity on Mallorca. It is the result of many years of trusting cooperation. The Minkner & Partner network includes proven experts from all areas of Mallorca real estate. First of all, there are notaries, lawyers, tax consultants and financing and insurance experts. In addition, there are project developers, architects, construction companies, landscape gardeners, craftsmen of all trades, kitchen builders and interior decorators. And, and, and. On our “expert page” we present the members of our network, and with one click you are on their website. So, you don't need 30 years to build up a Mallorca network. Use the network of Minkner & Partner.
New in the Minkner & Partner Talk Round: Talk with Denise Latocha from IBERIA Insurances about insurances around the Mallorca property
The popular Minkner & Partner talk round continues. Lutz Minkner spoke with Denise Latocha, Managing Director of IBERIA Insurances, about insurances around the Mallorca property, especially about building and household insurance. What risks are insured? What should I do in case of damage? What are the main differences between German and Spanish insurance law? Why is it advisable to use the services of an insurance broker? Conclusion: “It is better to have insurance and not to need it than to need insurance and not to have it”. You can find the Minkner Talk in German with Denise Latocha here: “Versicherungen rund um die Mallorca Immobilie”
2. Mallorca - Construction / Investment
Santa Ponsa/Magaluf: Municipality of Calvià builds 147 social housing units with two projects
In the next three years, the municipality of Calvià will build a total of 147 new social housing units in two projects (Santa Ponsa and Magaluf), some of which will be offered for sale and some for rent. The municipality has taken out a loan of 11 million euros to realise the projects. The construction project in Santa Ponsa is located on Carrer Miguel de Unamuno. Here, 99 homes are being built, 50 of which are for sale, 39 for rent and 10 for rent with an option to buy. The offer varies from studios to 4-bedroom apartments. All units are to be energy-efficient and have bright, high ceilings and large balconies. In Magaluf, 48 apartments are being built in two buildings. Here, the state government is taking over half of the investment.
On the connecting road between Port d`Alcúdia and the Alcanada golf course, a workers' housing estate built by the star architect of the time, Josep Ferragut, for the former electricity plant in the neighbourhood has been decaying for years. The housing estate is a listed building. There were 29 detached houses and a church on the 28,707 sqm site. Now the settlement is to be converted into a luxury resort with a community pool complex. The core of the bungalows and other buildings will be preserved so as not to damage Ferragut's overall architectural work of art. The work will not begin until next year after the licence has been granted. And again, there are protests. “Betrayal, breach of promise, deception and disappointment” are shouted. Deconstruction is universally ruled out. The normative force of the factual triumphs.
Campos/Llucmajor: Campos - Llucmajor motorway, Island Council in breach of promise
After years of discussions and protests, the motorway from Campos to Llucmajor is about to be completed and inaugurated. Environmentalists and residents had complained that the conversion of the old country road into a motorway would cut a wide swathe of 54 m through nature. The protests faded away after the Island Council agreed in 2018 to reduce the width of the new road from 54 m to 45 m. Now the road is finished and officially surveyed as part of a study. The result: the essential stretch has a width of 53 m, so it was not reduced by 9 metres, but only by one metre.
Banyalbufar: Richard Branson wants to convert Son Valentí estate into luxury country hotel
The ambitious British entrepreneur Richard Branson (music and travel company Virgin) wants to convert another estate “Son Valentí” into a noble hotel resort near his property in the Tramuntana mountains “Son Bunyola”, which is currently being converted into a luxury country hotel. The island council has already granted permission. The 15th century estate has an area of just under 500,000 sqm, the manor house 2,638 sqm. The permit comes with a catalogue of conditions: For example, the forest and the traditional dry-stone walls must be preserved or restored. New walls are to be built in the old craftsmanship. Valuable, historic building elements of the listed property are also to be preserved. The new hotel is to have 17 suites. Nothing has yet been announced about the amount of investment or a possible opening date.
Campos: Thomas Völkers plans new hotel with riding club on Son Ginard estate
German entrepreneur Thomas Völkers, one of the partners of Engel & Völkers, is planning a luxury country hotel on the grounds of the Son Ginard estate near Campos, scheduled to open in spring 2023. The hotel, which will be set in a garden landscape, will have a renovated old wing and a new building and is to have 15 rooms with 30 beds. There are also plans to connect a riding club with stables for 75 animals to the hotel.
Palmanyola: Event location Son Amar is also planning to open an “agroturismo”
The event location Son Amar is preparing for the new season. At least one new show is expected to attract thousands of guests to Son Amar again in the coming months. In addition, two outdoor areas of the extensive grounds with 15th century manor houses have been redesigned. On the one hand, there is the new restaurant “Reino de Alcázar”, on the other hand a Disney-inspired garden and the children's play area “Eden”. Now another plan is taking shape: An “agroturismo” is to be built on the site according to the motto “farm holidays”. However, permission can only be obtained if farming is actually carried out on the site. For this reason, the site is currently being redesigned: Old trees and shrubs are being felled and removed. Instead, a plantation with citrus and fruit trees is to be established. Nothing is known yet about the scope of the agroturismo and in particular the number of beds envisaged.
Serra de Tramuntana: Wooden crash barriers to make roads safer
At a cost of 2.4 million euros, the roads in the Serra de Tramuntana are to be made safer: Wooden crash barriers are to be built or renewed over a length of 31.7 km. Guard rails made of concrete or metal are to be removed. This is not only to create greater protection for traffic, but also to contribute to creating protection that is visually appropriate for the World Heritage Site.
3. Mallorca – Economy
Unemployment and short-time work
The slow revival of tourism over the Easter holidays did not affect the unemployment and short-time work statistics. In April 2021, the number of unemployed people in the Balearic Islands actually increased and was 13% higher than in April 2020. In total, there were 82,066 unemployed people in the Balearic Islands in April 2021. This figure must be seen in the context of the number of people in short-time work programmes (ERTE), because many of them may also slip into unemployment. The number of short-time workers is given as 29,194 for April 2021.
Traffic I: Air traffic - in June 2021 about 50% of the comparable period in 2019
The European Organisation for the Safety of Air Navigation “Eurocontrol” has calculated the expected air traffic to the Balearic Islands for the month of June 2021. According to this, between 46% and 52% of the air traffic will be carried out in the period between 03.05. to 13.06.2021 as in the comparable period in 2019. After all! However, there is still a lot of room for improvement in these forecasts, as some airlines publish their plans at very short notice, depending on the pandemic and the associated political decisions.
Traffic II: Cruise ships seek new anchorages in Greece and Turkey
The Balearic government has no reliable plans as to when it will reopen Mallorca's ports to cruise ships. While the Canary Islands have been operating cruise tourism again for months, there is dead silence at Mallorca's ports. The major cruise companies MSC, Costa Cruceros, Royal Caribean, Carnival (AIDA) and TUI Cruises have in the meantime agreed on new routes and are now giving preference to ports in Greece, Turkey, Egypt and Israel. They emphasise that travelling by cruise ship is highly safe due to intensive hygiene, protection and testing measures.
Traffic III: Flensburg shipping company wants to operate routes Mallorca - Menorca and Ibiza – Formentera
From the end of May, the German shipping company FRS (Flensburger Förde Reederei Seetouristik) will offer competition to the existing ferry companies with two ferries. Initially, the "Tarifa Jet" will be used between Mallorca and Menorca. The fast ferry has a capacity of 777 passengers and 175 vehicles. The route between Mallorca and Menorca is to be covered in one hour and 15 minutes. The smaller ferry "San Gwann" will then operate between Ibiza and Formentera from the beginning of June. It will carry 427 passengers and 15 vehicles.
Traffic IV: New Mallorca ferry (Dénia, Ibiza, Mallorca) to be powered by LPG
Balearia's new ferry, which operates between Dénia, Ibiza and Mallorca, is the world's first LPG-powered fast ferry. The "Eleanor Roosevelt" holds 1,200 passengers and 450 vehicles. It offers several cafeterias, a food truck, a VIP area and a play area for children. The new ferry cost 90 million euros. Balearia plans to convert nine more ferries to LPG this year and states the total investment at 380 million euros.
Traffic V: Uproar over alleged plans to introduce tolls on Mallorca's motorways
Excited discussions prompted alleged plans by the Spanish central government to introduce tolls on Mallorca's motorways from 2024. In fact, the central government, following Portugal's example, wants to introduce electronic payment systems on multi-lane motorways to compensate for the state deficit for road maintenance. Mallorca's island council reacted immediately and declared that there are no roads on the island for which the central government is responsible. All of Mallorca's motorways are under the jurisdiction of the Island Council and there will be no tolls on the Balearic Islands in the future.
Hotel industry I: bleak balance sheet of the Meliá Group for the 1st quarter of 2021
The campaign SOS Mallorca points out the economic difficulties of the hotels on Mallorca. Even the big ones in the industry are down for the count: Meliá Group, one of the Balearic Islands' two listed companies, has just published its Q1 2021 results, with revenues of €76 million, 73.9% lower than the same period last year. Meliá CEO Escarrer announces that all Meliá hotels on the Balearic Islands will open in May.
Hotel industry II: Hotel group RIU commits 19 million euros to TUI
The RIU hotel group has so far held a 3.6 % stake in TUI, the world's largest tourism group. As a result of the covid pandemic, TUI had received a loan of 4 billion euros from the German treasury, which gave the FRG a say in the matter. Among other things, TUI was advised to divest itself of some hotel commitments. To counteract this, TUI has now injected 19 million euros into the TUI coffers.
Energy: Environmentalists put the brakes on energy transition - next act of a tragedy
Currently, the share of renewable energy in the total energy consumption of the Balearic Islands is 3.5%. Within the next two years, the Balearic government wants to increase the share to 10% in order to be able to completely do without fossil fuels by 2050. The most important alternative energy source is solar energy, which is to be generated in large solar parks. But there are always hurdles that are supposed to put a stop to investors. Sometimes it's the neighbours, sometimes - yes, you heard right - it's the environmentalists who torpedo the plans for solar parks. The most important environmental organisations on the Balearic Islands, namely GOB, Terraferida and Amics de Terra, are demanding a moratorium from the government - a suspension of the planning and approvals for solar parks. Before further permits are granted, a general plan should be drawn up, which should, among other things, also prevent agricultural land from becoming an object of speculation. Energy transition or protection of fallow land? Which then?
4. Mallorca - Law, taxes, and finances
Hunt for tax evaders: Spain's tax office upgrades drastically
European Accounting reports in its news in German (www.europeanaccounting.net) of May 7, 2021: "With a cash injection of 532 million euros over the next three years, the Spanish government wants to make the AEAT tax authority more efficient and powerful. The measures include, among other things, the technological modernisation of the authority and the improvement of processes to uncover hidden money flows and black money. Among other things, the use of big data and monitoring systems will be increased. The number of employees will be increased by around 3,000. The goal is to get to the bottom of tax evaders more quickly; among other things, transnational and international cooperation will be strengthened. Another focus is on uncovering black money among the self-employed and small entrepreneurs. Customer service is also to be improved.
Demolition of illegal buildings: Marratxí - owner suffers nervous breakdown
The municipalities and the Island Council, to which some municipalities have delegated the sanctioning of illegal buildings, have increasingly issued demolition orders for illegal buildings in recent years and enforced them with publicity. This was recently the case in Marratxí, where a building in the Son Negre urbanisation was demolished on the basis of an unappealable demolition order, which had been built 20 years ago without planning permission. The owner, who had previously fought the announced demolition for years in court, suffered a nervous breakdown during the demolition work and had to be taken to hospital by ambulance.
Lutz Minkner - The book is in German - Der Immobilien-Ratgeber SPANIEN – Alles über Recht und Steuern "The Real Estate Guide -SPAIN - Everything about Law and Taxes”, 4th Edition 2020, available from May 2020 (!), 237 pages, ISBN: 978-3-96004-063-7, 29.95 €
5. Galería de Arte Minkner
Due to the uncertain situation, we have postponed the final planning of our event and exhibition calendar for 2021 for now.
01.04. - 30.06.2021, “Contemporaries - Themes and Scenarios of the Present”
The exhibition “Contemporaries” has been extended until June 30, 2021
Galeria de Arte Minkner is titling its new exhibition “Contemporaries - Themes and Scenarios of the Present”. Contemporary art of the present is commonly referred to as “contemporary”. Contemporary art thus includes a broad spectrum of artistic style, techniques used, materials processed and concept. From the gallery's collection, we present contemporary works by the following artists: Elvira Bach, Joseph Beuys, Jan Peter van Opheusden, A.R. Penck, Paul Quick, Mike Steiner, Antoni Tapiès and Peter Thoms.
Galeria de Arte Minkner, Avda. Rey Jaime I, 109 - 07180 Santa Ponsa, Tel. +34 971 695 255
Exhibition duration: 01.04.2021 – 30.06.2021, opening hours: Mon - Fri. 10.00h - 18.30h
6. Events and tips
May 16, 2021, “Paul Gant Quartet at Noon” at the cultural finca Son Bauló
Paul Gant and his quartet (Paul Gant - vocals, Steve Bergendy - bass, Franco Bombelli - piano, Jaume Ginard - drums) will perform at the cultural finca Son Bauló in Lloret de Vistalegre by 16.05.2021. The singer and showmaster has been thrilling audiences for many years on stage and on television, where he transports guests with heart and style to the times of Frank Sinatra with his smoky yet mellow voice. 16.05.2021, Paul Gant Quartet at the cultural finca Son Bauló, 11.00 a.m. brunch € 22, 1.00 p.m. Paul Gant Show € 18. Reservations +34 971 524 206, www.son-baulo.com.
May 22, 2021, Save the date: MM Spring Cup, Golf Alcanada
On the 22.05.2021, Mallorca Magazin will hold its MM Spring Cup at the Alcanada Golf Course. MM points out that all applicable safety and hygiene rules will be observed. Participation costs € 135 per person. The day begins with a communal breakfast on the clubhouse terrace, where there will also be some starter gifts. Halfway treats are also provided, of course. After the tournament, the Alcanada club gastronomy will serve up and there will be live music followed by the award ceremony with attractive prizes. 22.05.2021, MM Spring Cup at the Alcanada golf course, reservations directly at the golf club: firstname.lastname@example.org or tel. +34 971 549 560.
May 23, 2021, Manfred-Kullmann-Trio JAZZ – cultural finca Son Bauló, Lloret de Vistalegre
On 23.05.2021, the Manfred Kullmann Trio (Manfred Kullmann, Pep Luis Garcia and Wojtec Sobolewski) will once again perform at the cultural finca Son Bauló. The trio belongs to the “first league” of the wide world of jazz and plays successful titles from the international jazz and blues literature. 23.05.2021, Manfred-Kullmann-Trio plays jazz at the cultural finca Son Bauló, 11 a.m. brunch-buffet 22 €, 1 p.m. concert 18 €. Reservations + 34 971 524 206, www.son-baulo.com.
30. Mai 2021, “Tuesday Groove Session Special” at the cultural finca Son Bauló
The best musicians on the island (Rony B. - keyboards, Elon - bass, Günther Moll - guitar, Jürgen Modrow - voice, Patti Ballinas - drums and Egon Wellenbrink - sax) will set off grandiose fireworks on 30.05.2021: Rhythm & Blues & More a la Joe Cocker, Blues Brothers a.m. If you want, you can book beforehand the delicious 3-course menu of Son Bauló. 30.05.2021 “Tuesday Groove Session Special” at the cultural finca Son Bauló, 2 p.m. 3-course menu 22 €, 4 p.m. concert 18 €. Reservations: +34 971 524 206, www.son-baulo.com.
7. Legal Notice
The "Newsletter of Minkner & Partner S.L." is published fortnightly. As a client of Minkner & Partner PROFI KONZEPT S.L. you receive it via E-Mail. Responsible in terms of Press Law is Dipl. Jur., Ass. jur. Lutz Minkner, c/o Minkner & Partner S.L., Avda. Rey Jaime I, 109 – ES 07180 Santa Ponsa, Phone: +34 971 695 255, email@example.com www.minkner.org
OFICINA CENTRAL SANTA PONSA 07180 Santa Ponsa - Avenida Rey Jaime I, 109 Tel: +34 971 695 255 Fax: +34 971 695 695