Sociedad de Tasación opens the LLAD Breakfasts with an analysis of the real estate situation in the Balearic Islands

Sociedad de Tasación, the first valuation company approved by the Bank of Spain in 1982, inaugurated the LLAD Breakfasts, organised by Grup Serra and the Borbalán communication agency. The purpose of the meeting, which around twenty real estate professionals attended, was to present the report on the situation and prospects of the real estate sector in the Balearic Islands, prepared by Sociedad de Tasación, and presented by Marc Pérez-Ribas, general delegate on the islands.

The Bendinat Urban Country Club, a sport, gastronomy and wellbeing haven, was the venue chosen for the event, which was opened by Paula Serra, editor of El Económico, and Iago Herreros de Tejada, corporate director of Grupo Sociedad de Tasación, who presented the different areas of his business group, which covers valuation, consultancy and technology applied to their sector.

The report presented by Marc Pérez-Ribas is a very useful element for understanding the current situation of the real estate market in the Balearic Islands. A great amount of data that are difficult to analyse on their own, but which, with the experience and know-how of Sociedad de Tasación, offer not only a snapshot of the present or recent past situation, but also a perspective of the immediate future. The report included two large general study blocks, comprising a macroeconomic analysis and the situation of the mortgage market and the conditions of access to it, and several sections of its own elaboration in which it reflected its opinion as a leading entity in the appraisal and valuation market. These items are market trust, real estate activity, residential real estate offer, house prices and house rentals. For the conclusions of their analysis and the elaboration of results, they use various types of tools, including their real estate traffic light, which analyses 213 indicators and reflects the state of the trend in the sector.

The data offered by Sociedad de Tasación in its report confirms that in the Balearic Islands the price of housing continues its upward cycle, mainly due to the high demand and the scarce offer. The outlook for 2025, according to the 213 indicators of the real estate traffic light it produces, is very positive. The strong increase in households’ gross disposable income, lower interest rates and an optimistic economic outlook are some of the factors contributing to this situation. According to data provided by Sociedad de Tasación, confidence continues to improve and pre-pandemic levels have already been recovered in three areas: consumer, business and real estate. Foreign investment helps maintain the volume of real estate transactions. The Scandinavian market is very buoyant for both, and the price trend, both in new and used housing continues to be upward.

According to data provided by Sociedad de Tasación, population projections for the next decade anticipate a greater need for housing than the estimates of a year ago. In the short term, it does not seem that the new supply coming into the market will cover these new housing needs.The outlook for the rental market is similar to that for buying and selling. Changes in rental regulation have led to more than 10% year-on-year increases in the average starting price, a considerable reduction in supply, and a transfer of the traditional rental product to other segments.

José Luis Mateo, councillor for housing, territory and mobility; Sandra Verger, director general of the Association of Builders of the Balearic Islands; Omar E. García, director of real estate business companies at CaixaBank; Miriam Fortes, from Banco Santander; Toni Verdera, director of real estate business at Banco Sabadell; Maria Arroyo, from the Business area of Colonya Caixa Pollença; Francisco Vila, CEO of Arabella Hoteles; Juanita Casanas, president of Lionsgate Capital; Jorge Forteza, CEO of Berkshire Hathaway; José Miguel Artieda, president of APIs; Gloria Rodríguez, president of MADD; Daniel Arenas, from Mallorca Site.com and Pablo Pluvinet, director of major accounts at Sociedad de Tasación, were some of the professionals who took part in this first edition of the LLAD Breakfasts.

The roundtable following the presentation of the report was an interesting meeting place for the opinions and concerns of this select group of industry professionals. The presence of José Luis Mateo, councillor for housing, territory and mobility, led to many questions from the audience and a very productive dialogue. It will certainly not be the last LLAD Breakfast we will hold.