Inmobiliaria Portixol // Your Majorca Longterm Propery Specialist
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MALLORCA MIETBOERSE RENT INDEX 2012
For long-term rental properties
As of 11/18/2011
Function Of The Rent Index
MALLORCA-MIETBOERSE-RENT INDEX reflects the rental price structure for privately financed flats, houses and fincas on Majorca each year since 1999. It is not applicable for flats, which rent is fixed by state subsidies, for furnished rooms or participations in flat sharing communities.
The aim of the rent index is to make the rental price structure as transparent as possible!
The MALLORCA-MIETBOERSE RENT INDEX does not represent a price recommendation and should be only used as a guide by people who are interested in rents. The analysis was carried out entirely by internal information provided by MALLORCA MIETBOERSE S.L. C/ Vicario Joaquim Fuster 21A in 07006 Portixol, Tel. 0034 - 971-796082.
Usage Of The Rent Index
The rent index includes flats in 3 size groups and 4 age classes for buildings. The flat sizes are based on information provided by the owners and our estimation. All prices are indicated in net rent Euro per sqm.
In order to determine the common local rent, each individual flat has to be characterized into the relevant field of the rent index according to the criteria.
average value indicates where the majority of all rents within a rental margin is located. The margins express possible differences in quality within the relevant group (e.g. location, location of a flat within a building, furniture, heating, services, view, etc.).
The age class represents the date when a building was constructed or, if applicable, the date of the last general refurbishment of the property.
The year of construction has to be considered in the rental assessment, as well. If a flat can be categorized between two groups in regard to its year of construction / renovation or its size, the rental level of the neighbouring group should be also taken into account.
In the determination of the values for the rent index, rents for flats with particularly high quality / fancy furniture, as well as flats in picturesque individual locations, or whether a flat is furnished or not furnished have not been taken into account. That means that the rental levels apply to all flats in a medium and upper location and no flats in very simple locations with extremely simple accoutrement have been taken into consideration.
This segment of the market is determined by supply and demand and is rarely arranged via estate agents
Various locations outside of Palma have not been rated either.
After-Tax Rent:
The after-tax rent index is based on the amount of money for leasing a flat. This amount does not include any proportional operating costs. The operating costs in particular include the price for power consumption, water consumption, the provision of warm water, costs for maintaining any community facilities, care takers, pool cleaning, heating costs, garbage disposal and community charges.
Community charges or allowance for water, which are contained in the rental fee, are deducted to get the real net rental fee of living space. Furthermore rental fee for garages or parking spaces, which are contained in the rental fee, are also conducted. So you get also in this case thereal net rental fee of living space. Storerooms aren't taken into account.
Flats
| Prices in € / sqm | under 70 sqm | 70-120 sqm | above 120 sqm | ||
|---|---|---|---|---|---|
| Old building, good conditions: | Average | 8,25 | 8,25 | 7,80 | |
| Not modernized | Range | 7,50 – 9,00 | 7,00 – 9,00 | 6,80 – 9,00 | |
| Modernized old building or | Average | 11,90 | 12,00 | 11,10 | |
| new building Casco Antiguo | Range | 9,80 – 17,00 | 9,80 – 17,00 | 9,80 – 17,00 | |
| built 1960 - 1985 | Average | 7,00 | 7,20 | 7,00 | |
| Range | 6,00 – 8,80 | 6,20 – 8,90 | 6,00 – 8,80 | ||
| from 1985 | Average | 8,10 | 8,00 | 8,00 | |
| Range | 7,50 – 11,00 | 7,50 – 10,80 | 7,50 – 11,00 |
| Prices in € / sqm | under 70 sqm | 70-120 sqm | above 120 sqm | ||
|---|---|---|---|---|---|
| old building | Average | 4,70 | 4,70 | 4,70 | |
| Range | 4,30 – 6,50 | 3,90 – 6,00 | 3,90 – 6,00 | ||
| 1960-1985 | Average | 5,20 | 5,30 | 5,00 | |
| Range | 4,00 – 6,00 | 4,00 – 6,00 | 4,00 – 6,00 | ||
| 1985-1999 | Average | 6,60 | 6,20 | 6,10 | |
| Range | 6,00 – 8,10 | 5,80 – 8,10 | 6,20 – 7,00 | ||
| New building | Average | 7,60 | 7,40 | 7,00 | |
| Range | 7,20 – 8,50 | 7,00 – 8,30 | 6,60 – 8,40 |
Houses
| Prices in € / monthly | ||
|---|---|---|
| Chalet, detached | Average | 1.250 € monthly |
| Urbanisation Palma area | Range | 950 € to 1.800 € monthly |
Deviations:
With swimming pool + 30 %, with heating / air conditioning + 20%
Mint, modern standard (e.g. double glazing, bathrooms, building services, garden, particularly representative) + 20% each.
Row houses and bungalows / chalet in community areas have to be assigned to the flats (exclusive of community expenses).
Especially simple houses or above-average big houses were not considered.
Fincas
| Prices in € / month | ||
|---|---|---|
| Fincas/Cottages | Average | 1.330 € monthly |
| Palma Area | Range | 950 € hasta 1.750 € monthly |
Deviations:
With swimming pool + 30 %
with heating / air conditioning +20%
Mint, modern standard (e.g. double glazing, bathrooms, building services, garden, particularly representative) + 20% each.
Especially simple houses or above-average big houses were not considered.
Rent prices: Flats in comparison to Palma Centre
Other listed areas outside of Palma are compared in percentage with plus/minus to the values of Palma Centre/Casco Antiguo.
| Place | Deviation | Place | Deviation | |
|---|---|---|---|---|
| Portixol | 10,00% | Molinar | 5,00% | |
| Ca’n Pastilla | 0,00% | Playa de Palma | -5,00% | |
| Génova | 0,00% | Bonanova | 5,00% | |
| Cala Mayor | -5,00% | Ca’s Catalá | 0,00% | |
| Illetas | 0,00% | Bendinat | 15,00% | |
| Portals | 5,00% | Palmanova | -5,00% | |
| Sta. Ponça | -5,00% | Peguera | 0,00% | |
| Calviá / Es Capdellá | 5,00% | Pto. Andratx | 5,00% | |
| Cala Blava | 0,00% | Lluchmayor | -5,00% | |
| Campos | -10,00% | Marratxí | 0,00% | |
| Sta. Maria | 0,00% | Alaró / Binissalem | -10,00% | |
| Raum Inca | -15,00% | Pollença / Alcudia | -20,00% | |
| Sóller | -15,00% | Sineu | -25,00% | |
| Montuïri / San Juan | -15,00% | Petra / Villafranca | -20,00% |
Comments: For areas not listed her explicitly, no significant comparative values are available.
Trend 2012
The favourable buying mood of prospective customers and the prevailing buyer's market form perfect conditions for the ideal start.
Potential buyers should be encouraged by significant price reductions, by low mortgage interests and by banks offering special conditions to attract customers. Property developers offer their real estate with favourable starting conditions and own financing models and undercut often the conditions of the banks. The worry about inflation speaks in favour of property. Investors can count on a high number of potential tenants since renting does not represent a risk for safety conscious persons.
The rental tariffs have been altered in 2009 for the benefit of the tenants, the low has been overcome and there are clear positive trends.
The IPC (Indice de Precios de Consumo) the Spanish cost-of-living index, confirms this development (see table).
Thanks to the alterations in purchase prices and rental tariffs that now favour the buyers or the tenants it seems to be the ideal moment for a start.
* No responsibility can be taken for the correctness of this information
