Palma de Mallorca / Königsstein, March 20, 2020 – Nothing stands in the way of the start of the urban city project MÍO in Palma de Mallorca: the building permit has been granted, the existing building has been demolished and civil engineering work has been carried out. With MÍO, the Domus Vivendi Group , the leading German project developer for real estate in the Balearic Islands, is realizing an ambitious living concept in the tight housing market on Mallorca. The completion is planned for Q4 / 2021, the start of the lettings already in the fourth quarter of this year. MÍO will have a total area of ​​10,500 square meters and a volume of 46 million euros.

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

There is hardly enough rental space in Mallorca. Tasalia, which specializes in real estate valuation, estimates the shortfall in 2019 at 29,000 apartments. This situation will worsen by 2030 with a forecast population increase of around 217,000 on the Balearic island. At the same time, rent as a form of living will increase sharply, since capital formation can hardly be saved due to the high sales prices, estimates Tasalia. In addition, young tenants were looking for rental accommodation in order not to be tied to property due to the necessary professional and personal flexibility.

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

In general, according to Tasalia in his report, the highest rental prices can be achieved in Palma de Mallorca for apartments of around 40 square meters or smaller. Here the rent is currently at an average of 19.20 euros per square meter for unfurnished apartments plus the usual ancillary costs. According to another report by Tasalia, MÍO with its flat rate rents is nine percent below this market average.

“Plug in and play”: move in and feel good!

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

“With this unique mix of micro and compact apartments, high-quality equipment, modern building services according to the latest efficiency standards, as well as an all-inclusive service package and attractive leisure areas, we are creating a popular living concept for the big city – and all at affordable rental prices,” explains Oellig. The rents start including the ancillary rental costs at around 600 euros per month. “We are thus making a sustainable contribution to counteracting the great lack of suitable residential properties in Palma de Mallorca,” said Oellig.

Great demand with first letting guarantees, development with high appreciation

The demand for living space in the MÍO project is already far exceeding the supply. “Within just three months after the first publications about the project, we received more than 400 inquiries from private individuals,” said Thomas Oellig. “Due to this great demand, we are assuming full occupancy before completion. This means that we can already issue our investors with an initial letting guarantee today. “

The economic framework conditions and the development opportunities of the project are also of interest to 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 annually in ten years, this amounts to 22 million euros. Investments in innovative residential projects such as MÍO also offer interesting tax advantages due to their size: The corporation tax due is reduced to 3.75 percent, the Spanish VAT IVA (“Impuesto sobre el valor añadido”) to four instead of ten percent.

About Domus Vivendi:

As a high-quality project developer, the Domus Vivendi Group already offers more than 30 years of experience in Germany and over 20 years in the Balearic Islands. The spectrum on offer ranges from modern micro-apartments to multi-family houses and commercial projects to the most exclusive projects in the premium segment. From the preliminary design phase to the turnkey handover, Domus Vivendi guarantees the highest German standards in the Balearic Islands. With a total volume of over one billion euros, the Domus Vivendi Group is the leading German project developer in the Balearic Islands.

Other projects on Mallorca:

In addition to MÍO, the Domus Vivendi Group is currently realizing THE CIRCLE on Mallorca, a state-of-the-art building that gathers the players in the real estate industry under one roof – with fully equipped offices in a location that guarantees the best connections. And with jointly usable “Free for all” areas on 2,600 square meters that save costs and offer endless possibilities.

Press contact agency

FACTOR 3 AG

Ludmila Horn
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D-22041 Hamburg
Tel .: +49 40 679446-6347
Email: domus-vivendi@Faktor3.de