WITH coronavirus figures plummeting around Spain and only two new cases reported with no deaths over the weekend in the Balearic Islands things are looking very positive as we are moving closer to the summer months.
There were celebrations in most households as we entered Phase 2 on Monday, permitting free movement to the beaches and sport activities, as long as social distancing guidelines are adhered to, as well as gatherings of up to 15 people, and the opening up of bars and restaurants at 50% of their normal interior capacity.
From my personal perspective it was wonderful to see the beaches starting to be enjoyed again – the waters are crystal clear and the sand pristine.
Rather selfishly, one could wish to maintain this resident-only status for the quiet, tranquility and clear and clean natural habitat, but this is of course completely impractical for the majority of working inhabitants on the island who mostly rely on tourism to survive.
And that includes the real estate market, naturally.
So it’s good news for the Balearics’ tourist industry that the two-week quarantine law will be lifted from July 1.
President Armengol has asked for an earlier start, but as of yet this has not been agreed by Prime Minister Sanchez.
There will be many breathing a sigh of relief after businesses have been decimated over this Lockdown period.
With business in April only standing at 38% of the norm, we will only know the true impact at the end of the summer – if some businesses will have been saved, or whether it is too little too late. What the regulations will look like during this time, we won’t know – this will all depend on the figures continuing to decrease around Spain and Europe.
There will also be numerous hotels and restaurants that decide to stay shut rather than scrape by at less than their ‘break even’ for the year.
Since the de-escalation of the state of the alarm started, estate agencies in the Balearics have reported a revival of interest in the market, which is hopeful.
From colleagues I have heard there is a flurry of interest in small apartments with gardens and terraces which was predictable, with sales being closed unusually quickly.
On the higher end, there will always be the sharks that appear out of the water during these times…circling to see if there are any bargains to be had.
I certainly haven’t come across any as yet and will be contingent on many aspects including the coming summer season and global economy, particularly where the higher end is concerned.
But on a positive note I did receive my first post lockdown visit to an exclusive listing I have in Old Bendinat for €7.7m on Monday, from Germans living on the island.
Everyone arrived with masks, and ensured we stayed well-distanced ….. it felt rather strange I must say. But at least it gave me some hope that people are still looking, despite uncertain times.
In case anyone has been following my previous articles, at the start of the year, I was just about to sell this house before all this started, but the buyers backed out of signing just as lockdown began…one of the first business casualties of the coronavirus chaos!
It is too early to say how demand in general will evolve, but sales completed since de-escalation apparently have maintained pre-crisis prices.
Amanda J Butler – an holistic approach to real estate in Mallorca.
MJC Associates – +34 690075169, firstname.lastname@example.org