Behind a Nordic who buys, there is a Mallorcan who sells - Interview in Diario de Mallorca

On 26th February, our partner in Palma, Tete Crespí, was interviewed by Diario de Mallorca to talk about the situation of the real estate sector in general and the particularities within her city.

In a few questions, Tete makes a very accurate analysis of the present and future of the real estate market on the island, putting the focus of Monapart's attention on those people who want to feel well advised and accompanied during the process of selling their home.

[Question] What differentiates (Monapart) from other real estate agencies?
[Answer] The sale of a house is the most important transaction in a person's life, therefore rigour and honesty are very important. Offering a house at market price, well valued, well presented, by a team of professionals is fundamental (...) At Monapart we sell a lifestyle, we are also a local agency, we take care of the Mallorcan, and we filter a lot, we work exclusively.

[Question] Are you implying that real estate agents are pulling the wool over your eyes?
[Answer] Not at all, I wouldn't dare to say anything like that, but without wishing to speak ill of it, I do think that some of them lack rigour. The price is very variable, the sector sells by approximation. We work with real valuations. An example: it is not the same to sell a house in the area of the cathedral as in sa Gerreria, and some agencies offer these properties in the same way. A street changes everything. A house in Palau Reial cannot have the same price as a house in a smaller, side street...

[Question] Is the market in Palma, a city that seems to be for sale and/or for rent, exhausted?
[Answer] We are living in a very chaotic moment. There is a great demand, people have returned to the city and the foreigner has given value to areas such as the historic centre, the Portixol, which the Mallorcan abandoned or didn't look after because they didn't value it. Before a Nordic who buys, there is a Mallorcan who sells, but beware, many locals believe that the Swedes are fools. They pay dearly if the product is good. The client who thinks he can get rich from the Nordic boom is of no interest to us. The one who offers his house to a lot of real estate agencies distorts the market, loses value, because he ends up giving the wrong price. In Monapart we are interested in selling at a price adjusted to the real value of the property.

"Vacation rentals have been positive but greed is causing unacceptable situations".

[Question] Are prices in Palma inflated, especially in areas such as the historic centre, Santa Catalina, Son Espanyolet?
[Answer] Although we are not in the realm of mansions, I think that in general houses are being sold at the wrong price. In my opinion, the problem is the low quality of the product. There is little housing in areas of high demand, and some people want to make a killing and inflate prices. 10,000 euros per square metre in Sa Gerreria in front of a soup kitchen is absurd! I prefer the owner without absurd expectations, but I repeat, that is not our client.

[Question] The reality is that many owners have invested in order to profit from holiday rentals, causing the forced departure of local tenants with less purchasing power. What is your opinion of the Balearic Government's regulations, which have not yet been approved?
[Answer] It is obvious that it should be regulated, that said, it also seems logical to me that the Mallorcan who has a lot of properties should be given the possibility to rent them out because it provides work, it promotes economic growth, it is positive. That said, the fact that the local client cannot rent at reasonable prices and has to leave is terrible. In the end, greed gets the upper hand. The law, in general terms, seems to me to be quite strict, but at the same time there must be limits. Another consequence is that neighbourhoods will eventually lose their authenticity.

[Question] Palma is fashionable, but by definition, fashions are fleeting.
[Reply]Everything is a cycle, and there will be a hangover, but my opinion is that in Palma, everything will be maintained.

"I don't want to speak ill of real estate agents but I think that many of them lack rigour, they sell by approximation and with variable prices".

[Question] Where will Palma grow?
[Answer] [Answer] [Answer] [Answer] [Answer] [Answer] [Answer] [Answer] [Answer I don't know, detecting future investment is not my function, although it is clear that the area of the Llevant industrial estate, La Soledat. The centre is exhausted, Santa Catalina, too. The city will grow in rings, in the peripheral areas. We are interested in areas such as Blanquerna, Arxiduc and we are also interested in houses in the towns with good communications. Palma as the gateway to the island.

[Question] Will tourist saturation liquidate Mallorca?
[Answer] [Answer] [Answer] [Answer] [Answer] [Answer] [Answer] [Answer] [Answer I have no culture of complaint. Limits yes, but with a head. With the crisis on top of it, prices didn't go down.