Spain’s Balearic Islands emerge as Russian property hotspot
After Catalonia, the Balearic Islands are the preferred destination for Russian tourists to Spain. Statistics for the first nine months of 2012 show 102,121 Russians travelled to the Islands and Sotheby’s International Realty is expecting many more in years to come.
Anna Batizi, Head of International Sales for Moscow Sotheby’s International Realty, works closely with her Ibiza and Mallorca franchise counterparts and has recently been on a hosted familiarisation trip to the Islands, Anna says, “Lifestyle is the single biggest draw for Russians when it comes to the Balearics. These are the perfect holiday Islands blessed with well over 300 days of sunshine a year, something that Moscow lacks to the most extreme extent. The capital, Palma de Mallorca, is vibrant and sophisticated, the Islands’ infrastructure well developed and the hundreds of kilometres of coastline provide perfect boating opportunities. Add 26 golf courses, 60 or more vineyards and a superior standard of living and little wonder my Russian clients are expressing a keen interest.”
As often happens, the real estate market in the Balearics is following the tourism lead with many Russians making the transition from holidaymaker to holiday home owner. Prices compare favourably to other destinations that have captured Russian hearts such as the South of France, Italian Riviera and Lake Como, and of course the proposed new law that will offer residency permits to property buyers from outside of the EU is also alluring.
Daniel Chavarria Waschke, Managing Director of Balearics Sotheby's International Realty, comments, “Our experience shows that well-to-do Russians have developed exquisite individual taste having travelled all over the world and owned various properties in both Moscow and abroad. They place importance on style as well as substance with an eye on value for money. Factors such as nearby private schools, resale potential and price square metre are driving the transactions we’re involved in to the same degree as size, status and lavish fixtures and fittings once did. This is a new generation of Russians who are, in turn, also thinking of their next generation.”
The Balearics are becoming a hotbed for Russian buyers. Prices on the Islands weren’t as affected as heavily by the crisis as in mainland Spain as local authorities have been sufficiently farsighted to limit construction and protect the stunning landscape, this gives confidence for future investment potential. Local banks will lend up to 60 or 70% of the property’s value to foreign purchasers and build quality beats, on the whole, that of the mainland hands down. Accessibility from anywhere in Europe is another factor that appeals to the Russian business mindset.
For the tourism industry, Spain had already broken the barrier of one million Russian tourists by September this year and the country sits in third spot after Egypt and Thailand for Russians holidaying abroad. The Russian outbound tourism market has the highest growth rate in Europe and passenger flow to Spain is expected to increase by 20 or 25% next year. Russians also spend up to 50% more during their stay in comparison with other nationalities.
Anna Batizi’s pick of the Balearic property market for Russians:
Ref 5738, Villa, Cala Marmacen, Andratx, Mallorca
South facing fantasy villa with fantastic sea views in the prestigious Cala Marmacen area of Andratx. Designed to evoke a seagull in flight, the light-filled home comes from the drawing board of Uruguayan architect Alberto Rubio famous for his white curves and signature roofs. Distributed on two levels, the home has four bedroom suites with bathrooms and access to the terraces. The spacious pool area offers open and covered terraces, a sauna, Jacuzzi and summer kitchen. Features include: underfloor heating, air conditioning, security technology including video entry, Bose sound system and garage for three cars. The property will be sold furnished and with everything you could desire.
Four bedrooms, five bathrooms
Built area 540m², Plot size 1,510m²
Price 9,800,000 euros (approx 7.95 mn pounds)
Ref 5585, Villa, Can Pep Simo, Ibiza Town, Ibiza
Brand new southwest facing villa in a sought after exclusive residential area just five minutes from Ibiza Town with panoramic views over the Bay of Talamanca, the Old Town and the Sea. The house has been designed to offer convenience and comforts with wooden floors throughout, four ample bedrooms and two full bathrooms on the ground level with access to the terraced pool area. The interior lift opens onto the top level where there is an enormous living room, dining area, fully fitted kitchen with access to a back terrace, a guest WC and utility room. A very large front terrace offers fantastic views. Contemporary decoration and natural light flood the house on all levels. Garage and service apartment included.
Four bedrooms, two bathrooms
Built area 398m², Plot size 921m²
Price 2,150,000 euros (approx 1.74 mn pounds)
For more information, visit mallorca-sothebysrealty.com.
