Russians Becoming More Interested In Property In The Balearic Islands

More Russians are becoming interested in buying property as a second home in Spain’s Balearic islands and in moving to Spain to live and work.

Statistics for the first nine months of 2012 show that after Catalonia, the Balearics are the preferred destination for Russian tourists to Spain and many of them are falling in love with the area and deciding to buy property.

Some 102,121 Russians travelled to the islands during that time and estate agents are hosting expecting demand from Russian buyers to increase.

Anna Batizi, head of International Sales for Moscow Sotheby’s International Realty, works closely with her Ibiza and Mallorca franchise counterparts. ‘Lifestyle is the single biggest draw for Russians when it comes to the Balearics. These are the perfect holiday islands blessed with well over 300 days of sunshine a year, something that Moscow lacks,’ she explained.

‘The capital, Palma de Mallorca, is vibrant and sophisticated, the islands’ infrastructure well developed and the hundreds of kilometres of coastline provide perfect boating opportunities. Add 26 golf courses, 60 or more vineyards and a superior standard of living add to the interest,’ she added.

As often happens, the real estate market in the Balearics is following the tourism lead with many Russians making the transition from holidaymaker to holiday home owner. Prices compare favourably to other destinations that have captured Russian interest such as the south of France, the Italian Riviera and Lake Como.

 

A proposed new law in Spain that will offer residency permits to property buyers from outside of the European Union is adding to the appeal for Russian buyers.

‘Our experience shows that well to do Russians have developed exquisite individual taste having travelled all over the world and owned various properties in both Moscow and abroad. They place importance on style as well as substance with an eye on value for money,’ said Daniel Chavarria Waschke, managing director of Balearics Sotheby's International Realty.

‘Factors such as nearby private schools, resale potential and price square metre are driving the transactions we’re involved in to the same degree as size, status and lavish fixtures and fittings once did. This is a new generation of Russians who are, in turn, also thinking of their next generation,’ he added.

He pointed out that prices on the islands weren’t as affected as heavily by the economic crisis as in mainland Spain as local authorities have been sufficiently far sighted to limit construction and protect the landscape, this gives confidence for future investment potential. Local banks will lend up to 60 or 70% of the property’s value to foreign purchasers and build quality beats, on the whole, that of the mainland. Accessibility from anywhere in Europe is another factor that appeals to the Russian business mindset.

For the tourism industry, Spain had already broken the barrier of one million Russian tourists by September this year and the country sits in third spot after Egypt and Thailand for Russians holidaying abroad. The Russian outbound tourism market has the highest growth rate in Europe and passenger flow to Spain is expected to increase by 20 or 25% next year. Russians also spend up to 50% more during their stay in comparison with other nationalities.