Imagine enjoying an apartment or a villa on the seafront every year in Mallorca, without having to worry if the pool is working well or if the IBI of the house has been paid. All this, without having invested a prohibitive sum of money.
Co-ownership, the trend of owning a home shared by two or more people that is going strong in the United States, has recently arrived in Mallorca. An ingenious idea, taking into account that there are currently few plots available for construction and housing and mortgage prices have spiraled due to the current situation.
The landing of the direct flight from New York to Palma by the United Airlines company this summer has brought to the island a type of customer with high purchasing power, accustomed to this model that allows them to own homes both in towns and cities, in houses that their structure, budgets and sizes vary. The number of houses bought by people with different last names increased by almost 772% from 2010 to July 2021 in the United States, according to the firm Attom Data Solutions.
“Co-ownership allows individuals to become shareholders in their dream home and access luxury properties that are two to eight times over their budget,” explains Gloria Rodríguez, co-founder and Director of Mallorca Site. The company she runs, one of the most established real estate agencies on the island, has already started offering this property management service.
To the benefits of shared ownership, we must add the comfort for the owners of forgetting about the administration and maintenance of the property. The owner uses the property exclusively, selecting the days that most interest him. In addition, technology has arrived at this new idea of second homes: the key to the front door can only be opened when the shareholder has the house reserved, adds the expert in the real estate sector.
Another of the great advantages of co-ownership is that it is not impersonal like Airbnb. Owners have their own storage for personal belongings. On a budget, they can have their crockery in the kitchen and their clothes hanging in the closet when they arrive at their vacation home.
Depending on the number of shares each of them owns, they can use the house more or less weeks a year. As Rodríguez, from Mallorca Site, indicates: “the idea is to share the house between at least two owners and a maximum of eight. Ideally, there are four.
The operating expenses are shared among all the shareholders of the property, allowing them to enjoy a fully managed home and thus be able to sell the corresponding part when the time comes, “knowing that homes on the island are revalued every year,” he adds.
Caring for the environment is a priority for the new generations, who seek to be more responsible than the previous ones, reducing their carbon footprint and having a home that is as sustainable as possible. The co-ownership houses seek to update the house, with solar panels and electric bicycles available to the owners, to be as eco-friendly as possible, data that suggests that it is a model for the future.
Co-ownership works especially well with the US market, since this buyer profile has few vacations a year to enjoy a second home and cannot always travel to Mallorca due to a longer-distance flight.
Rodríguez explains that the advantage of the island is that it receives people from all over the world. The holidays of the English, the Danes or the Swedes are not the same, nor are these clients looking for the same thing. “While the Swedes enjoy the island in winter, the Germans prefer summer, so the model works by sharing housing with other nationalities who dare to bet on it,” he adds.
The owner of Mallorca Site specifies that the weeks of use are reserved thanks to an application that is customized for each property and allows reservations with little notice or even two years before the day of arrival if there is a special occasion.
Three types of stays are offered. The General Stays allow owners to enjoy one week each on a rotating basis up to a maximum of six. Once the six stays have been completed, the following stays can be booked.
The Express Stays allow each owner to have all the days of use that they request, as long as they do not exceed the total that they are entitled to each year and the house is free seven days prior to check-in. An ideal option for Europeans who have last-minute days off to travel to the island, which has the best-connected airport in the Mediterranean.
Each owner has the right to enjoy at least eight of the special days of the year: Christmas, New Year’s, Easter, summer and holidays in their country of origin.
Also, you don’t have to wait much longer for the model to keep growing, since any property can work with this trend model. In the long term, these owners can benefit from the increase in the value of the property, selling their part when they request it. Between April and June of this year, specifically, the price of real estate registered an increase of 3.5% compared to the same period of 2021 in Spain, according to the Gesvalt appraiser.