Project developments launched, totalling over EUR 70 million
The demand for high-quality office premises and adequate, affordable housing in Majorca is increasing dramatically. THE CIRCLE and MIO real estate projects, totalling over EUR 70 million, aim to meet this demand. The German property developer, Domus Vivendi, has over 20 years of experience in the Balearic Islands, where it successfully implements German standards. Since first being announced, both these projects have been so popular that follow-on projects are already planned. THE CIRCLE and MIO properties are due to be completed in early 2021 and early 2022. Both will then be fully let and handed over to institutional investors. Thomas Oellig, Managing Director of the Domus Vivendi Group: “The sales process for investors will begin early next year. We have long supported Majorca’s structural change. Affordable housing and high-quality office units are in such high demand that investors can no longer avoid this topic.” High double-digit returns, depending on the leverage, emphasise this trend.
Location, location, Majorca
Majorca offers clear advantages as an investment location. Mass tourism is expected to decline and commercial growth is encouraged. There is a huge influx of overseas tenant groups and international firms. Investors are particularly focussing on the economically strong south-west Majorca and the international target audience based there. In addition, the population is expected to grow by almost 220,000 over the next ten years. These positive trends mean that demand for residential and office premises is also expected to rise in the long term. Oellig describes the local rental market: “Historically, there was hardly any affordable housing in Majorca. There remains a shortfall of just under 30,000 rental apartments. This is where we can help. There are no office buildings on the market like the ones we have in Germany.”
The buildings are predicted to increase in value by approx. 5% p.a.
Construction has already started
Construction of the commercial CIRCLE project has already begun. This concept provides fully-equipped office units with state-of-the art technology and extensive “free for all” areas that include conference rooms, green indoor and outdoor space, print stations, front desk and back-up service.
In the case of the MIO project, the existing building has already been demolished and initial civil engineering work carried out. Construction is due to begin in early 2020. The MIO residential concept is unprecedented on the Majorcan market. Oellig: “We are combining fully-furnished micro apartments with larger compact units that include top-of-the range fixtures and fittings and modern building technology, coupled with sought-after outdoor space, plus a pool and gym. And all of this is affordable for tenants. Rents start at around EUR 600/month, including ancillary costs, such as electricity, water, Internet etc.” From design stage to turnkey handover, all project phases are fully managed and coordinated by Domus Vivendi.
About Domus Vivendi:
As a high-quality property developer, the Domus Vivendi Group already has more than 30 years experience in Germany and over 20 years in the Balearic Islands. Its portfolio ranges from modern micro flats, through apartment blocks and commercial projects, to the most exclusive developments in the premium segment. From preliminary design stage to turnkey handover, Domus Vivendi guarantees the highest German standards in the Balearic Islands. Its in-house construction project management, general & risk management and due diligence departments ensure that technical asset management is virtually risk-free.
With a total volume of over one billion euros, the Domus Vivendi Group is the leading German property developer in the Balearic Islands.
Please contact us for further information:
DOMUS VIVENDI GROUP
Domus Vivendi GmbH & Co. KG
Hainholzweg 17
D-61462 Koenigstein im Taunus
Tel .: +49 6174 25 989 00
E-mail: info@dv-group.de
Web: www.dv-group.de