The year 2014 has been closed leaving significant improvements that can be considered a hopeful precedent for the year just started: conditions have improved access to credit, have lowered interest rates (approaching Euribor + 1.5%) and we see that the Greek crisis will lead to bringing the price of money at historic lows.

Similarly, the tendency to consider the floors of banks as one of the best financial products is maintained. As regards financing policies, the forecast is that deadlines and maximum percentages and maximum funding 80% of housing is maintained. This initial overview involves an optimistic heading towards 2015 in which trends, according to ACI (Association of Real Estate Consultants) will be:

The value of transparency in the property market
Being considered real estate one of the main drivers of the economy, transparency should be a key for building trust in the Spanish property market value, it is a fundamental premise that takes force with the entry into force at the beginning of December new Transparency Act.

Commitment to professionalism
To support the professional Spanish property market and avoid professional intrusion, only professional firms backed by decades of research and market knowledge, as well as the RICS (Royal Institution of Chartered Surveyors) seal, be able to add value necessary.

Consolidation of SOCIMI
Thanks to the reform of the law by the Spanish government in 2014 the creation of such companies is encouraged, it is expected that in 2015 these companies carry out refinancing processes in order to increase the capital to continue investing.

Management of public property assets
Currently, the Spanish State is the largest property owner in the country, 12,000 properties as indicated by the Transparency Portal. The active management of them will be essential to help revive the sector.
Implementing a strategy to increase recurring revenue for the use of public property assets similar to that developed by Italy, Finland and Austria were even contemplated.

Sustainability
Spanish real estate market is clearly moving towards a sustainable growth and development following the needs and growth trends in the world economy, is therefore essential to take a firm commitment to the citizen, the industry and the environment. It should work to optimize the performance of existing building stock and intensify new construction, thus providing benefits for the planet, the economy and society.

Legal security and taxation
International investors tend to pay particular attention to legislation that applies in each country when making investments of any type and, therefore, those directly affecting the housing market will be studied by their advisers. It is very important to have a legal system developed and adapted to the real market of each moment. The legal system must be flexible and enhance the tax benefits to boost the number of investments.

Definitely, it is a good time to buy, especially in already established areas such as Mallorca, which enjoys a great position and there isn’t a significant stock pending sales. If you want to purchase a property in Mallorca please contact Vogue Properties, we specialize in the Balearic property market, mainly in Northern Mallorca, and have a wide range of properties: Luxury apartments, Villas, Charming Towhouses, Country properties, Plots and more …