Engel & Völkers Balearic Islands Regarding CoronaVirus

Dear Searching Clients, Property Owners and Business Partners

Due to the strong increase of CoronaVirus cases and the strong speed of infection, the Spanish Government its Ministers and the Prime Minister have passed a Royal Decree RD 463/2020 which declares the National State of Alarm across the entire Kingdom of Spain. Consult the full text here.

Main Areas of Action

The State of National Alarm means that the Government assumes full power and authority over the entire nation and its assigned Ministers. In order to reduce the risk of further contagion, all persons are confined to remain at home until the end of March. Travel and transportation is reduced to: health reasons, purchase of food, transportation to / from work, travel to banks and very few other exceptions. Transportation is limited to one person per vehicle and the authorities are controlling this very strictly. Businesses opening for the public is also very strongly limited to food, medical services, laundry services and other absolutely vital activities. Transportation on medium to long distance train destinations plus aircraft travel is reduced by 50%. In the past hours border control on terrestrial routes have come into action. The supply of food, medicine and energy are guaranteed on behalf of Spanish Government directly and there is no supply shortage.

Spain Unites in Order to fight the Virus

The population of the Balearic Islands are following the spirit of support for the health service personnel and security forces in order to lock-down the spread of COVID-19. A profound feeling of calm and community has united the country in this effort. Tranquility and responsibility are in place and the first and utmost priority is to keep everyone safe. At the same time, Spain is mobilising action towards effective and rapid measures in order to contain the virus with total transparency providing regular information updates for its residents and visitors.

Situation in the Balearic Islands

The Islands of Mallorca, Ibiza, Menorca and Formentera have, in absolute figures, one of the lowest infection rates in the Kingdom of Spain. The infrastructure of the Balearic Islands is designed to comfortably accommodate more than double the current population and there is absolutely no feeling of panic amongst its residents. The supermarket shelves are quickly replenished and the over 10 private and public hospitals communicate to be prepared. All children of school age have been sent home to continue their schooling for the next two weeks where they can  comfortably connect to their teachers via the internet.

Possible Effects on the Real Estate Market in the Balearic Islands

The Balearic Islands are a favourite destination for Mainland Spain and Europe and have been over the past five decades. The strong protection of its territory, which grants the islands with an unmistakable natural environment, is at the same time one of the most desired benefits of owning a property here. Past financial crises cannot be compared to this global health crisis and also in this case Engel & Völkers is certain of the resilience of the Balearic Real Estate Market. The recent volatility of the stock markets has immediately shown a strong increase in demand for real estate investment opportunities in the Balearic Islands and this confirms the reputation of the region as a safe place remains unbroken.

Quick FAQ’s Regarding the CoronaVirus

Is my Engel & Völkers property shop allowed to open to the public during the State of Alarm? No

How can I contact my Engel & Völkers Real Estate Advisor? The Engel & Völkers Team is on home office available via mobile and email.

Can I visit a property with Engel & Völkers? Movement of persons is very restricted. Video conferences are offered.

Are the Notaries opened? Only for urgent cases and if it does not put health at risk. See Instruction here.

How do I confirm the existing Notary Appointment? Contact your Notary ASAP via this directory.

What happens if contractual time-frames cannot be met? State of Alarm suspends contract infringements due to time reasons. Contracts are automatically extended during the State of Alarm due to force major. See here.

What should I do in order to protect my transaction? Arrange Power of Attorney, agree generous time frames and agree written extensions to existing agreements. The lawyers of the Balearic Islands are also active from their Home Offices.

How long will this situation last? It is impossible to say, keep in mind that COVID-19 is spreading into other countries and that this will also affect activity. A longer international lock-down should be discussed and anticipated.

The complete Team of Engel & Völkers in the Balearic Islands wishes to thank the health and security staff working to preserve the wellbeing of the population and visitors. This is a global effort affecting mankind without distinction and our thoughts go out to those who are challenged by the virus.

Please always feel free to contact us directly to share your comments.