In the luxury Paseo del Borneo in the centre of Palma, also known as the Golden Mile a 5 million deal has been carried out by Solvia-Banco Sabadell
Since last April the Solvia-Banco Sabadell has closed three deals in Palma of a total of 10.6 million Euros. The first deal, an old building where the Banco Sabadell used to have its headquarters located in Via Sindicato was finalized last April and sold to a Spanish investor for 2,63 million euros. The second deal was finalized in June, a German investor group purchased a building in Plaza de España for 3 million euros. The supermarket chain Müller will open a store and will renovate the building that used to be occupied years ago.
The last deal “Can Puig” the most famous palace in Palma de Mallorca has been sold last August. Can Puig a 15th century building in the luxury Paseo del Borne which has been purchased by a British company will apparently be converted into a building of five luxury apartments. This has been the most significant purchase in the area recently during the economic crisis. This is an example for many in the construction and real estate sectors that these symbolic properties, and iconic buildings of Mallorca are growing and becoming the object of wealthy foreign investors.
Deloitte in the last months has noticed a growing demand for commercial and business premises along with hotels on the island. The director of Solvia Banco Sabadell Alexander Grau recently stated that in the Balearics an increase in interest and confidence among investors seeking unique properties on the island. Due to all this, sale prices have increased and Mallorcan commercial premises along with Madrid are amongst one of the most expensive in Spain.
In 2013 18% of real estate sales had foreign investment funds according to the Land Registry, and if you were to include foreign investors this would mean that one in every three real estate deals are backed by foreign capital. Due to all this many areas have increased in value, and this makes the commercial square metre in Mallorca €1860, and normally the average in Spain is €1420 per metre. It seems that in Mallorca the commercial property has risen an 8.4% since last year whilst in the rest of Spain it has fallen 2.5%.
The investors that are now reportedly investing in commercial zones are from countries such as Britain, Germany, Scandinavia as well as Asia and Middle East. These investors invest in Palma, and there are other areas such as Alcudia, Andratx and Calviá that are also very popular for these investors.