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Press Release

Project MÍO in Palma de Mallorca:

Authorities grant building permit for innovative housing concept

Palma de Mallorca/Königsstein, March 20, 2020 - There is nothing to stop the urban development project MÍO ("Mine") in Palma de Mallorca from getting underway: planning permission has been granted, while the demolition of the existing buildings and civil engineering measures have been carried out. With MÍO, the Domus Vivendi Group, the leading German project developer for real estate on the Balearic Islands, is implementing an ambitious residential concept in the tight housing market on Mallorca. Completion is scheduled for Q4/2021, and letting will start in the fourth quarter of this year. With a total area of 10,500 square metres, MÍO will have a property volume of 46 million euros.

Rental market in Palma de Mallorca: high demand, low supply

In Mallorca there is hardly enough rental housing available. The company Tasalia, which specialises in property valuation, estimates that there will be 29,000 apartments in 2019. This situation will continue to worsen until 2030 with a predicted population growth of around 217,000 on the Balearic island. At the same time, rent as a form of housing will increase strongly, since equity capital formation can hardly be saved due to the high sales prices, Tasalia estimates. In addition, young tenants are looking for rented housing in order to avoid being tied to property due to the need for professional and personal flexibility.

"This situation in the rental housing market leads to enormous demand and high rents with poor quality," says Thomas Oellig, Managing Director of the Domus Vivendi Group. "MÍO is our answer to this tight market: a dynamic and functional housing concept for a new generation of flexible and mobile people at an attractive price-performance ratio".

In Palma de Mallorca, the highest rents are generally obtained for apartments of around 40 square metres or less, according to Tasalia’s report. Here the rent is currently at an average value of 19.20 euros per square meter for unfurnished apartments plus the usual additional costs. MÍO's flat-rate rents are nine percent below this market average, according to another Tasalia report.

"Plug in and play": move in and feel good!

The urban city project MÍO offers a completely new living concept: 148 micro-units will be created, fully furnished and ready for tenants to move in within 24 hours. In addition, there will be 36 compact units with 2-3 rooms and a fitted kitchen, which are designed for more freedom and individuality. The rental price includes the basic supply of electricity, heating, air conditioning and water as well as the use of the communal areas with a beach club including a pool, fitness studio and beach volleyball court.

"With this unique mix of micro and compact apartments, high-quality fittings, modern building services in line with the latest efficiency standards, an all-inclusive service package and attractive leisure areas, we are creating a sought-after residential concept for the big city - and all this with affordable rents," explains Oellig. The rents start at around 600 euros per month, including incidental rental costs. "With this we are making a sustainable contribution to counteract the great lack of suitable residential properties in Palma de Mallorca," says Oellig.

Great demand with first letting guarantees, development with high appreciation

Even now, the demand for housing in the MÍO project by far exceeds the supply. "Within just three months, after the first publications on the project, we have already received more than 400 requests from private individuals," says Thomas Oellig. "Due to this high demand, we expect to be able to fully let the property even before completion. This means that we can already give our investors a first-occupant guarantee today".

The economic framework and the development opportunities of the project are also interesting for investors. The total volume of real estate transactions in Mallorca is developing dynamically and has doubled since 2014. According to official figures from the Ministry of Transport, Mobility and Urban Development, property prices in Palma have risen by a total of 38 percent since 2012.

Even with a conservative calculation, the MÍO project offers a high increase in value: with a positive rent development of 2.5 percent and an assumed increase in value of 2.5 percent in ten years, this already amounts to 22 million euros annually. Due to their size, investments in innovative residential projects such as MÍO also offer interesting tax advantages: the corporate tax payable is reduced to 3.75 percent, while the Spanish value-added tax IVA ("Impuesto sobre el valor añadido") is reduced from 10 percent to 4 percent.

About Domus Vivendi:

As a high quality project developer, the Domus Vivendi Group offers more than 30 years of experience in Germany and over 20 years on the Balearic Islands. The spectrum of its offering ranges from modern micro apartments and apartment buildings to commercial projects, as well as the most exclusive projects in the premium segment. Domus Vivendi guarantees the highest German standards on the Balearic Islands, from the preliminary design phase to handover of the keys. Thanks to in-house project management in building construction, general & risk management and due diligence, technical asset management is virtually risk-free. The Domus Vivendi Group is the leading German project developer on the Balearic Islands with a total volume of over one billion euros. In Germany, the group has realized projects with a total property volume of more than two billion euros in the last ten years alone.

Further projects in Mallorca:

In addition to MÍO, the Domus Vivendi Group is currently building THE CIRCLE in Mallorca, a state-of-the-art building that brings together the players in the real estate sector under one roof, with fully equipped offices in a location that guarantees the best connections. And with communal "Free for all" areas of 2,600 square metres that save costs and offer endless possibilities.

Press Contact Agency

FAKTOR 3 AG
Ludmila Horn
Kattunbleiche 35
D-22041 Hamburg
Tel.: +49 40 679446-6347
E-Mail: domus-vivendi@faktor3.de