Annual reports

2017 report

FUNCTION OF THE RENT INDEX

The MALLORCA-MIETBOERSE-RENT INDEX reflects the rental price structure for privately financed flats, houses and fincas on Majorca each year. 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.

The 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 the real net rental fee of living space. Storerooms aren't taken into account.

Flats Palma Centre/ Casco Antiguo within Avenidas and Paseo Mallorca prices in € / sqm

under 70 sqm 70-120 sqm above 120 sqm
Old building, good conditions: Not modernized Average 9.6 9.6 9.2
Range 7.8-10.80 7.8-11 8.1-10.2
Inmueble rehabilitado o nuevo en Casco Antiguo Average 13.8 13.8 12.5
Range 10-16 10-18 8.5-17
Año constr. 1960 - 1985 Average 8.5 8.5 8.2
Range 6.5-10 6.8-9.8 6.8-9.8
A partir de año constr. 1985 Average 8.9 9.2 8.5
Range 7.2-10 7.8-10 7.8-9.8
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Flats Palma (between Avenidas and Via Cintura and outskirts) prices in € / sqm

under 70 sqm 70-120 sqm above 120 sqm
Old building Average 5.6 5.6 5.6
Range 4.3-6.9 4.3-6.8 4.3-6.8
1960-1985 Average 5.6 5.6 5.4
Range 5.1-6.5 5.1-6.5 4.6-6.2
1985-1999 Average 6.8 6.8 6.4
Range 6.1-8.5 5.8-8.5 5.8-8.5
New building Average 8.1 8.1 8.1
Range 7.3-8.5 7-8.5 7-8.5
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Houses Palma area. Average net rent prices in € / monthly

Chalet, detached Average 1.340 € monthly

Urbanisation Palma area Range 980 € to 1.820 € 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.

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Fincas/cottages Palma area. Average net rent prices in € / monthly

Finca/cottages Average 1.400 € monthly

Palma area Range 880 € to 1.690 € 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.

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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.

Rent prices in comparison to Palma Centre in percent

Portixol +5% Ca’n Pastilla - 5% Playa de Palma - 5% Molinar + 5%

Génova + 0% Bonanova + 0% Cala Mayor - 5% Ca’s Catalá + 0%

Illetas + 0% Bendinat + 10% Portals + 5% Palmanova - 10%

Sta. Ponça - 2% Peguera + 0% Calviá /Capdellá + 5 % Pto. Andratx + 5%

Cala Blava + 0% Lluchmayor - 5% Campos - 15% Marratxí - 5%

Sta. Maria - 3% Alaró/Binissalem - 15% Zona Inca - 20% Pollença/Alcudia - 20%

Sóller - 15 % Sineu - 25% Montuïri/San Juan - 15% Petra/Villafranca - 20%

Comment: For areas not listed her explicitly, no significant comparative values are available.

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TREND 2017: limited offer of long-term rental properties.

International political uncertainty and bad news from other holiday destinations, have been announcing, since a few months ago, a particularly successful holiday season 2016. As a consequence of this, many landlords who normally rent long-term, took their properties out of the long-term market and offered it as a holiday home at daily or weekly rates.

As a result, only a very limited range of long-term rental properties were available and it became difficult for long-term tenants to find something. The impact was a sudden extreme increase in rents in preferred locations and the island capital of up to 30%.

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* No responsibility can be taken for the correctness of this information