What are the typical commercial properties in Mallorca?
Areas and buildings used for commercial purposes are referred to as commercial properties. These can be shops, hotels, restaurants, sports and wellness facilities, workshops, offices, administration buildings, medical practices or warehouses. But also artist studios, touristic used Finca real estates and galleries belong to it.
Commercial real estate in Mallorca is part of the real estate industry. This area deals with the management, development and marketing of commercial real estate. The market for buyers or investors in this segment is more manageable than for residential real estate. Compared to the residential property market, commercial properties are often associated with higher investment costs. This is why real estate companies in Mallorca need commercial properties in their portfolios to have more complex financial measures in order to secure the return expectations of investors or buyers.
Where is the Mallorcan commercial property market heading?
Overall, global economic development is moving away from a production company and towards a service society. As a result, commercial real estate is also becoming increasingly important internationally. The demand for commercial space is also increasing in Mallorca. The market for commercial real estate is subject to fluctuations in the world market to the same extent as the economy and, of course, directly to EURIBOR in Spain. The lower price level of the economic crisis in recent years has already created rising demand on an international scale. On the other hand, high vacancy rates and a large number of commercial properties newly built in Mallorca in the last two decades of this century are still generating weak demand on average.
In addition, the commercial real estate market has undergone a strategic realignment since the 1990s. Real estate companies are now increasingly trying to sell their existing properties at a profit. To this end, they are focusing on commercial sites that are still under development. The further economic optimisation of these commercial properties forms the basis for higher earnings and has thus become the real lucrative business branch of the real estate industry on the island.
Foreign investors in particular regard Mallorcan commercial real estate as a worthwhile investment. Catering properties are still a sought-after commercial object. High-quality shops, hotels, restaurants and cafes/bars in top locations are in great demand. Particularly popular are the locations Palma de Mallorca, the tourist resorts on the Cala Major in the southwest as far as Puerto Andratx and tourist centres such as Alcudia or Can Picafort.