After Catalonia, the Balearic Islands are the preferred destination for Russian tourists to Spain. Statistics for the first nine months of 2012 show 102,121 Russians travelled to the Islands and Sotheby’s International Realty is expecting many more in years to come.
Anna Batizi, Head of International Sales for Moscow Sotheby’s International Realty, works closely with her Ibiza and Mallorca franchise counterparts and has recently been on a hosted familiarisation trip to the Islands, Anna says, “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 to the most extreme extent. 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 and little wonder my Russian clients are expressing a keen interest.”
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 hearts such as the South of France, Italian Riviera and Lake Como, and of course the proposed new law that will offer residency permits to property buyers from outside of the EU is also alluring.
Daniel Chavarria Waschke, Managing Director of Balearics Sotheby’s International Realty, comments, “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. 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.”
The Balearics are becoming a hotbed for Russian buyers. Prices on the Islands weren’t as affected as heavily by the crisis as in mainland Spain as local authorities have been sufficiently farsighted to limit construction and protect the stunning 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 hands down. 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.
