ENGEL & VÖLKERS MALLORCA
When you think of the leader in the Real Estate sector in Mallorca,
a name automatically comes to mind:
. Hans Lenz .
And truly, not necessary to think much more, because there you will have it all.
Engel & Völkers is currently one of the largest real estate companies in the world.
Today, in The Ambassadors Sections, we interview Hans Lenz, the most representative figure of the spectacular expansion and leadership position that Engel & Völkers has achieved in Mallorca during the last decade, and where the company opened its first international office at the end of the 90s.
Hans shares with us his vision of the current Real Estate landscape, the challenges for the future, and the main strengths and competitive advantages of Mallorca as one of the most attractive destinations in the world for international real estate investors.
Palma de Mallorca
Mallorca, The Joy of Life
Mallorca Morning Bliss
Hans, although nowadays Engel & Völkers does not need introduction in any corner of the planet, let’s review the dimension that the company has reached globally and which are, in your opinion, its main competitive strengths
Thank you Patricia, it is been already more than 40 years since Engel & Völkers was born in Hamburg, today with more than 1,200 offices worldwide, and even so, the company has managed to preserve and maintain that closeness, those values of teamwork and that incessant search for excellence, in both treatment and service.
And Mallorca really occupies a very important and special place within the group, because this is where the company’s first international activity began, and it is where the entire Board of Directors continues to have their vacation homes, Mallorca is their favorite place to enjoy their leisure.
Naturally, with more than 30 years of presence here, the company is deeply rooted in the island, and since that first office, today we have 21 offices here.
So many years of presence in Mallorca have allowed us to achieve a very solid expansion and a very deep knowledge of the market.
We have a very agile and close connection with all the people who are running the company at the highest level, and it is very nice to feel that appreciation and closeness between us.
Of course, there is no doubt that you have the best resources, not only in terms of properties but also in terms of human capital.
The shift that the company has experienced in Mallorca under your leadership in the last decade has been truly spectacular. Congratulations on such an excellent job Hans.
Thank you Patricia. We are a very large team of truly committed people who contribute every day with incredible energy and ideas, to continue developing this business, this service, because we understand that, far beyond selling Real Estate, we advise on one of the most important decisions in people’s lives.
Despite the current global scenario, so unstable and volatile, with the continuous changes in the regulatory offer on supply and demand and the exponential changes that the latest technology has brought to all areas of our lives, it is very beautiful seeing how young people join the team. In mine, specifically, we already have parents, their grown up children, couples… all continue to contribute firmly to the company through their continuous dedication and involvement.
It is deeply enriching to see how entire families are fervently betting on this job, this service, this company and this brand.
Hans, you were talking about an environment of high global volatility, which is certainly unprecedented.
How does this situation affect the sector in general and the company in particular, together with other important factors such as the fundamental changes in our communication processes that the latest technologies such as AI have brought into our lives?
To sum it up in a few words, it’s basically about bringing order out of chaos. (Laughs)
We don’t always succeed, but we do better every day…
The current situation forces us to adapt at an even more agile way and to adopt an even more competitive leadership.
The arrival of the pandemic, which was such a disruptive and unexpected situation for the whole world, we now know it catapulted us forward in digitization at an exponential way.
We had no choice, because our clients couldn’t travel and our employees couldn’t leave the house or go to the office, but we had to pull through anyway, and this, as in many other industries, put us back to work in remote locations and in virtual visits and sales.
We had several double digit sales with virtual tours where deposits were paid before even setting a foot in Mallorca. This was absolutely groundbreaking, nobody expected it and, in some way, it set a precedent, it opened a new cycle that continues today and that is here to stay, and now fortunately way more bearable, without the pressure we had at that time because we couldn’t go out or travel.
This shows that Mallorca is a quality destination with a high attraction factor, which makes us very happy, but also that a place as attractive as Mallorca, due to its spectacular natural beauty and excellent connectivity as we have in the Balearic Islands, can cope with everything, including a pandemic and a global financial crisis, because Mallorca is very resistant to any external factor.
And so? Well, because despite the fact that for more than 8 months people could not travel, 2020 was not a bad year for us, we were able to hold out very well, the company demonstrated an extraordinary resilience.
And what happened later was an acceleration like we had never seen before: in 2021 and 2022 the number of operations and the value of these Real Estate transactions doubled.
This, on the other hand, also had other type of consequences, such as the sudden rise in housing prices, which we are now taking very seriously, and the difficulties in accessing housing that this implies for those of us who live and work here.
And on that side, there is a line of work that we take very seriously and will continue on our part, which is to make sure that there is affordable housing, and that we work hand in hand with both the public sector and the regulators, to make sure that Mallorca does not die of success… and I think we are on the right track.
In this sense, ABINI also entered the scene, the Balearic Association of National and International Real Estate Agents, of which I am President, in which Real Estate agencies with a common philosophy work together to create the best collaboration environment, in addition to facilitating the context and situation for the rest of the Balearic real estate agencies.
ABINI is doing a magnificent job as a sign of the deep-rootedness and sensitivity that its member Real Estate agents feel towards the islands and their people.
ABINI is a brilliant concept. If it did not exist, it would have to be created, and so you did.
How did the idea come about?
The project was born 5 years ago. We were talking about a series of situations that we should be able to address and work together within the sector, and not only among ourselves but also in front of the administration, and we realized very quickly that we would not be able to go for that as individual companies, so we formed this Group of Agencies, which share similarities in our values and in our way of working, and also do not claim at any time to enter into competition with the other associations of real estate agencies that have already existed in the Balearic Islands for many years, on the contrary, we maintain also a very close contact with all of them.
There was a very important accelerator within this process, which was the regulation of our activity, something that was already very necessary and that we all valued very positively, since we are a very relevant part of this sector, we are a very active part of it, and from here we are doing many things: from addressing structural issues, as I mentioned before, to working together on the positioning of the Balearic Islands as a top-level tourist and investment destination, and also to promote collaboration and synergies between companies, always based on a common search for service based on the excellence and rigour practiced by all the companies that are part of our ABINI group.
It is a very beautiful, stimulating and enriching job, and in recent months we have seen the need that an Association like ours may have to, perhaps, even confront, in a firm and effective way, against those who may intend to implement quick and flimsy solutions that in the long term can have serious negative effects, in order to protect the citizen, the sector and even, at a given moment, be able to face political decisions if we consider them to be wrong.
Of course, someone has to be able to rise up with the necessary courage and presence to be able to speak out against what is not being done well, especially considering that the Real Estate sector, along with Tourism, are two fundamental economic engines for Mallorca and the Balearic Islands.
That’s how it is. Decisions regarding both tourism and housing are of great strategic importance, especially in our territory, due to our insular condition, and must be based and argued on solid analysis data and objective decisions than must have been seriously analyzed, studied and considered in their course, instead of promoting laws that may be based on ideologies, in which the warnings of the experts and the representatives of the main sectors that alert about what can go wrong are being disregarded or not listened to.
Because generally, from the main tourist and hotels associations, as well as ours, the common good really prevails, we are not a greedy lobby that is looking for our own benefit, because we understand that everything that is good for society, will also be good for our business.
And we have just entered a new political stage, let us hope that it will be possible to establish that much-needed public-private collaboration
We feel confident in this sense, to be able to move forward at the speed required by the current situation and that, in a few years, we can return very positive effects to work, to the sector and to the economy of Mallorca and of the Balearic Islands.
I think we have entered a very promising stage, which I hope will also bring some stability, because the legislation could not keep changing constantly as it was. In the last four years, in the Real Estate sector in the Balearic Islands, 19 different decrees or changes in urban regulations were promoted, which made it an impossible mission to even understand where and how to start working.
There has to be a simplification, there has to be an organization, some rules and, of course, space has to be given for orderly and sustainable growth, so that the people who live and work here can continue to have access to housing.
That politicized intervention within the Real Estate sector, with restrictions everywhere, also contributed very significantly to prices rising so rapidly.
We need Order, Stability and Sustainability.
Speaking of sustainability, let’s talk now about Mallorca as a destination.
There is no doubt that Mallorca has some unique advantages and characteristics that makes it a very special spot in the world…
True. Thanks to the international dimension and scope of our company, we are lucky to be able to compare different destinations that have certain similarities with the Balearic Islands, specifically some wholesale destinations, and when we start the comparison we realize that we really have a combination of factors that make us a truly unique destination.
First of all, here we have an extraordinary climate, it is a warm and pleasant Mediterranean climate that allows us to live outdoors almost all year round, enjoying a well-kept nature with 40% of the territory of the islands protected, that is, very balanced.
To this we can add our excellent connectivity, both by air and sea. Mallorca is the Mediterranean destination with the best connectivity by plane and we are a key gateway to and from Europe, with more than 300 destinations during the summer season. It is a very important number of air connections, and now many of them are direct to the United States and others will be direct also very soon to the Middle East and later on perhaps to the Far East also. All this is yet to come.
So, having a home in the Balearic Islands…Being able to enjoy this magnificent climate throughout the year, first-rate connectivity infrastructures, a high level of security that unfortunately is unthinkable in other European cities, with a very cosmopolitan mentality open to other cultures, accustomed to the cultural movement of the EU-Mediterranean, makes people feel very welcome here.
We also have a highly diversified tourist offer and a first class gastronomy. A great cultural and sports offer, as Mallorca and the Balearic Islands are a magnificent destination to practice all kinds of nature and coastal sports. And also a top sailing and nautical destination… it is very difficult to find another destination as beautiful for sailing as the one offered by the spectacular coasts of our islands.
In fact, we are seeing it every day in the international press, the type of profile and person who comes here with their boats to enjoy our marvelous coasts year after year.
The southwest area of Palma de Mallorca exudes a unique, authentic charm combined with an exceptional location that has been drawing both locals and residents in search of tranquility and comfort. Find out more about the enchanting neighbourhoods of Genova, La Bonanova, El Terreno, Son Armadams, and Sa Teulera, all of which have become increasingly popular among residents, and explore why this region is an absolute gem:
That shine in your eyes…
Yes, because it is truly such a unique combination, and that is why so many people come to the Balearic Islands to visit and when they arrive they decide to settle here permanently.
We have 17 international schools, a network of hospitals and private clinics where you can be treated and cared for in all languages, and a very high-level gastronomic offer, with 13 Michelin Stars restaurants distributed among the islands.
The tourism offer is so vast, so wide, so complete, the attractions are so rich and varied that you can never get bored, and if you go to the city of Palma, continuously changing and always vibrant and interesting, it is logical and easy to understand that we have all the ingredients to position Mallorca and the Balearic Islands as one of the most attractive tourist and investment destinations in the world.
I only ask anyone visiting us for the first time, to look and appreciate everything they see through the eyes of a child. Let them be carried away by the magic and beauty of everything that these amazing islands have to offer, and that Mallorca and the Balearic Islands are a unique destination that they will be able to fully enjoy throughout the year…and throughout their lives.
And I insist on the issue of health. The sun will be all over the Mediterranean, but the health system we have here does not exist in any other nearby destination, and this is an aspect that I think is worth highlighting, and we saw that especially during the pandemic.
We have a permanent population of 1,200,000 people on the islands, of which approximately 1,000,001 are in Mallorca, but we have a very sound health infrastructure, excellent transport and all kinds of services that are perfectly prepared to accommodate much more, and the fact of being an island always gives you extra protection, the quality of the air, the protection of the sea, we are more collected here, and that during the pandemic made us less vulnerable.
There are very interesting projects on the table in which you can invest and that draw the main lines of what the Balearic Islands can become as a destination. In fact, it has already begun to become a great international destination for health and wellness, alternative therapies, recovery and medical healing, longevity.
The proliferation of magnificent health, yoga and wellness centers, the quality of our SPA’s… Very interesting projects are being developed that indicate that a new path is opening up with great possibilities for visitors from all over the world to come here to take care of themselves, to relax, to heal, to recover, to enjoy a more balanced and rewarding life, more connected with nature.
Deepak Chopra has just been in Mallorca again recently. This new approach, this new paradigm related to health and well-being is taking shape in the Balearic Islands with great potential to add to our tourist attractions.
When you said that the number of applications to buy properties here skyrocketed after the pandemic… it makes sense because when human beings find themselves cornered it is when they make the most important vital decisions: quality of life, way of living…
For many people it was a vital change, such as: «And wouldn’t I be able to carry out my work, my business activity, my business, my life in Mallorca… which is where I would really like to be, and at the same time give my family and myself a higher quality of life and in a very cosmopolitan environment?»
Here the children learn more languages than staying in their country of origin, and they grow up surrounded by nature and with a much healthier life.
This approach has amazing potential. And more in the current technological age, where we can work from anywhere. Apart of Sun & Beach we can become the star destination for Sun & Data.
The global demographic profile of millionaires has changed. Currently a very high percentage of millionaires are under 40 years of age, due to the irruption of new technologies.
Many YouTubers and young people who earn millions from the applications are now based in Andorra because the government gives them many tax facilities.
If we manage to attract this type of visitor or resident to Mallorca…
I want to highlight this, because what happens in Spain is that sometimes we create very positive rules and laws but then we are not good enough when it comes to communicating them.
I would like readers to know that here in Spain there are currently two very positive factors related to invest in the Real Estate sector:
On one hand, the Golden Visa that with the purchase of a property from €500,000 allows you to automatically enjoy a 2-year residence permit, and this is valid for everyone who is not in the EU community, like the United States and the Middle East, and now also the United Kingdom, since they left the European Union, they can also opt and the procedure is already standardized, although it takes a few months, but they can opt for this visa that allows completely free movement within the Schengen zone of the European Union.
Mind about this, because depending from which country you come from, it has an important value: after those two years, you and your family, all your dependents can enter automatically and then it is renewed for another 5-year term until, at a given moment, you can even obtain permanent residence, if you want.
This is very important to communicate and to make known, because the processes are already underway, there are law firms specialized in these procedures and from €500,000, you enter Mallorca and you are already in Europe.
And on the other hand, we have a law that mixes two aspects of the Digital Nomad Law and also the Beckham Law, which is so called because the first person to use it was David Beckham when he joined Real Madrid years ago, and this is for entrepreneurs who wish to move and establish their tax residence in Spain.
We have to take into account that once you have spent more than half a year in Spain, you become a tax resident, with the Beckham Law, for the first €600,000 of income that you generate in Spain, you pay personal income tax capped at 24 %, which is practically half of what you would pay, and from that €600,000, you have already gone to a rate of 48%, but it also has the added factor that you do not pay any wealth tax on your international income in Spain, and all this for a period of 5 years, which is a generous period, right?
So, now this is also receiving more and more interest from businessmen and entrepreneurs who decide to come and live here, have a permanent residence and take advantage of these tax conditions, and I want to recommend to everyone that they inform themselves in depth about these aspects, or that they contact us so that we can guide them well on these issues, because right now there are many more advantages available for coming to live in Spain than is actually known.
And with the important political change that has already crystallized in the Balearic Islands and the progressive elimination of laws such as the Heritage Law, which had become totally outdated because it had been eliminated in practically all the countries in the world, that will also help attract more talent and entrepreneurship towards the islands.
People who have second homes here in Mallorca, who have bought properties here or elsewhere in Spain and are using them as a second home, are also increasingly considering to come to live here and to develop their business activities from here, so there is enormous potential for Mallorca and the Balearic Islands to become an important hub of knowledge, know-how, growth and digital innovation, especially for young businessmen and entrepreneurs.
We are a world tourism power, digital tourism development is already a reality and has great growth potential still ahead. All these factors can be a huge success for us to claim as a destination, at international level.
For people who want the multi-residential option, Mallorca and the Balearic Islands are also an ideal destination.
It’s a brilliant vision and an exciting concept, as we are also in the heart of the EU-Mediterranean, with less than 2 hours flight to the main European cities
Yes, even out of summer season, life here is very good also in winter. Those magnificent daylight hours that we have in winter, that sunny, warm and wonderful climate will also attract more and more people beyond the summer peak season.
All these factors open up a channel for a new, extremely important potential market, and a much younger audience that is in full swing of their business or professional activity, who can have their children of all nationalities in these magnificent schools, enjoying a fantastic life while fully creating, growing and innovating in the digital world from this wonderful environment.
Technology has changed our way of perceiving the world, of communicating, and of living.
Our habits in terms of communication have changed exponentially and companies have the challenge, all of us, to keep up with it. It is not easy, and that is where the human factor comes in again.
We are continually adapting so that the ultimate goal is always that personal contact. Reaching that personalized advice, in which you speak with people and not with machines, generates bonds of trust and close ties.
In order to achieve that, today we have to be present on all the different technological platforms and be very agile and intuitive through all the information that we are collecting on the profiles of each of the people with whom we deal and interact.
That’s where we are at now. In being able to decipher, through perception and intuition, what our client wants even before he himself is clear about what he wants.
Hans, we have reviewed in depth the real and potential advantages and strengths of Mallorca and the Balearic Islands. As everything in life is about balance, what could you tell us about the challenges? What are currently the main concerns of the sector, yours as Engel & Völkers and those of ABINI?
We have the challenge of ensuring that these two realities of these two Real Estate markets, first and second residences, can continue to coexist, and we have to focus on working on solutions for the future, for balance and for sustainability.
One of the biggest challenges that we have ahead of us is that our demographic growth has not been accompanied by a commensurate production of housing for the use of residents, and as an island territory, we do not have the land to be able to change this quickly, so we need to grow in efficiency, we have to grow in solutions adapted to today’s society, which has very different needs than fifty years ago.
We have to know how to adapt to an aging population and we have to be prepared and aware that we have people who move here to work for the summer season, who need very different types of housing solutions than those who live here all year round.
We have to learn to respect the private property, because the interventionism that was trying to be implemented, that fortunately now will surely stop, was only looking for quick shortcuts that do not solve a structural problem and a system issue. It is the cause that matters, that is where we have to go.
We have to be aware of the importance of the balance between nature and man, this is a constant on an island, and in this sense fortunately we have a lot of work done due to decades of environmental protection, but the challenge now is to enter a new phase and a new management model.
We have protected many areas, but now we have to recover the connection with nature, which has suffered due to the sustained increase of activity in the services and tourism sectors, and which has also caused us to inexcusably abandon our fields and our forests, and there we also have the challenge and the responsibility of giving the support it deserves to the primary sector through Organic Agriculture.
We have to carry out efficient and effective forest management and, above all, we all have the challenge of understanding that sensitivity for our natural resources, for the environment, for nature, is not exclusive to progressive ideologies, it is a sensitivity and a commitment of all.
Centrist, liberal companies…whatever their ideology, we all have to contribute actively and we cannot always wait for others to do so, we must all get actively involved.
That is why I am also so passionate about the work we do at the Mallorca Preservation Foundation, of which I am President, and which is part of an alliance of environmental foundations with local action, because we take care of what we can see, measure, and in some way, we can also feel.
The Mallorca Preservation Foundation is in Mallorca, Menorca and Ibiza and growing worldwide with 13 different locations and another 13 more underway, all encompassed under an umbrella called The Conservation Collective.
We generate support through economic resources, financing, management and visibility, covering all areas of the environment, marine protection, biodiversity, renewable energy, education and awareness, and we each do it from our sector, from our own field of business activity.
We are very happy and satisfied with the development of the Foundation and very grateful to all those who collaborate with us in the development of these objectives.
In Ibiza, the Preservation Foundation has been running for 15 years and in Mallorca we started in 2017, we have completed 5 years and over €500,000 have already been generated in donations. More and more local companies, businessmen and entrepreneurs are getting involved and together we are creating a wonderful future to care for and to protect our wonderful territory.
Fantastic Hans, thank you so much, it has been a magnificent interview.
What would be your final message to all our readers?
To our readers I would like to invite them to come.
That when they have the opportunity to enjoy this wonderful environment, they will not want to change it for any other place in the world, and we can confirm this because our clients, once they have come to visit or have invested to stay and live here, perhaps they can change ownership location or type of property if their personal situation or their personal needs change, but they rarely leave the islands…
Here we are, waiting for them, with open hearts and arms.
–By Patricia Pal
Palma de Mallorca, November 27th. 2023
The Ambassadors Sections © NastaONE International Communication
Engel & Völkers Mallorca Southwest
Isaac Peral 50
07157 Puerto de Andratx
Tel: +(34) 971 67 47 80
SPECIAL ENQUIRIES / PRIVATE OFFICE:
Karen Lauhus: firstname.lastname@example.org
Linkedin Hans Lenz: https://www.linkedin.com/in/hanslenzmallorca/
Linkedin Karen Lauhus: https://www.linkedin.com/in/karen-lauhus-95941173/
ABINI – ASOCIACIÓN BALEAR DE INMOBILIARIAS NACIONALES & INTERNACIONALES:
MAPF – MALLORCA PRESERVATION FOUNDATION:
LINKEDIN ENGEL & VÖLKERS MALLORCA:
FACEBOOK ENGEL & VÖLKERS MALLORCA:
INSTAGRAM ENGEL & VÖLKERS MALLORCA:
YOU TUBE ENGEL & VÖLKERS MALLORCA:
TWITTER ENGEL & VÖLKERS MALLORCA:
TIKTOK ENGEL & VÖLKERS MALLORCA:
Discover Engel & Völkers Mallorca Hotspot ebook:
The Ambassadors Sections & The Ambassadors Program are Concepts, Products and Services entirely Conceived, Created and Produced, Fully and Exclusively by NastaONE International Communication www.nasta-one.com
© NastaONE International Communication – The Ambassadors Sections 2023 – All Rights Reserved