PRIVATE OFFICE
.THE AMBASSADOR.
When you think of the leader in the Real Estate sector in Mallorca,
a name automatically comes to mind:
Well, two: Hans Lenz and Engel & Völkers
And the truth is…that’s all you need to keep in mind.
It is not necessary to think much more, because there you will have everything .
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 in Mallorca, the challenges for the future, and the main strengths and competitive and differential 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
Hanz Lenz, General Manager of Engel & Völkers Mallorca SouthWest & President of ABINI
Hans, although today Engel & Völkers does not need any introduction in any corner of the planet, let’s review the dimension that the company has reached globally and what are, in your opinion, its main competitive strengths
Thank you Patricia. Well it’s been already more than 40 years of history 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 that have been part of the essence of the company right from the beginning.
And Mallorca truly 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 and the favorite place they always come back to anytime they can.
Naturally, with more than 30 years of presence here in Mallorca, 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 a very solid expansion and a very important and 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.

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 Hans on such an excellent job.
I thank you, Patricia. We are a very large team of truly committed people who contribute daily with their incredible energy and ideas to continue to develop this business, or this service, should I say, 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 continuously join our team, in which in mine, specifically, we already have couples, parents, their children…entire families who 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, and we are grateful to them for it.
Hans, you were talking about an environment of high global volatility, which is certainly unprecedented.
How does this situation affect the real estate 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 in 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 to endure, we now know that catapulted us forward in digitization in an exponential and unprecedented way.
We had no choice, because our clients couldn’t travel and our employees couldn’t leave the house to go to the office, but we had to pull through anyway…and we did, and this, as in many other industries, put us back to work suddenly in remote locations and through virtual visits and sales.
We had several double digit sales with virtual tours where deposits were paid before ever setting foot in Mallorca. This was absolutely groundbreaking, nobody expected it and in some way it set a new precedent, it opened a new cycle that continues today and that is here to stay, and now fortunately much 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 very high attraction factor, which makes us very happy, but also that a place as attractive as Mallorca, due to its spectacular natural beauty and the excellent connectivity we have in the Balearic Islands, can cope with everything, from a pandemic to 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 at all, we were able to hold out very well and the company demonstrated 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 our real estate transactions literally doubled.



This, on the other hand, also has other type of consequences, such as the sudden rise in housing prices, which we are now also taking very seriously, and the increasing difficulty 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 regulator. , to make sure that Mallorca cannot 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 and where real estate agencies with a common philosophy work together to create the best collaboration environment, in addition to facilitating the context and situation for Balearic real estate agencies.
ABINI is doing a magnificent job as a sign of the deep-rootedness and sensitivity that all its member real estate agents feel towards the Balearic 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 7 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 before the administration, and we realized very quickly that we could not 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, with all of them we maintain a very close contact, interaction and collaboration.
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 represent a very relevant part of this sector and our industry has a very significant weight in the Balearic Islands economy.
From ABINI, we work together and 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 our companies, always based on a common search for service based on the excellence practiced by all the companies that are part of our group.
It is a very beautiful, stimulating and enriching job, and in the past we even saw the need that an Association like ABINI may had to even confront, in a firm and effective way, against those who intended to implement quick and flimsy solutions, that in the long term could have serious negative effects, in order to protect the citizens, the sector and even, at a given moment, be able to face political decisions if we considered 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 for the Balearic Islands economy
That’s how it is.
Decisions regarding tourism, real estate and housing are of great strategic importance here, especially considering our insular condition, and any possible adverse effects must be carefully studied before promoting laws that may be based on ideologies in which the experts and representatives of sectors that alert about what can happen here, are not being listened to, because generally, both from the part of the tourism industry and hotel associations, as well as from ours, the common good is what 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.
We have now entered a new political stage, and we hope that it will be possible to establish that much-needed public-private collaboration.
We feel confident in that sense, hoping that in a few years we can return very positive effects to the sector, to the community and to the economy of Mallorca and the Balearic Islands.
I think we are on a very promising path, which I hope will also bring some stability to our sector because the legislation could not keep changing constantly. In the last four years prior to the entry of the current government, we had 19 different decrees or changes in urban regulations in our sector, which makes it truly impossible to work properly.
There has to be simplification, there has to be organization, some rules and, of course, space has to be given for sustainable growth.
That politicized intervention within the housing sector we had to endure in the past, with constant restrictions all the time and everywhere, also contributed very significantly to prices rising so rapidly.
We need order, stability and sustainability.



Hans, speaking of Sustainability, let’s talk now about Mallorca as a tourism and investment destination.
There is no doubt that Majorca has some unique advantages and characteristics in the world…
True. Thanks to the international dimension and scope of our company, we are very 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, a warm and pleasant Mediterranean climate that allows us to live outdoors almost all year round, enjoying well-kept nature, with 40% of the territory of the islands protected, that is, very balanced.
To this we can add 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 flight destinations during the summer season. That is a very high number of air connections and also now many of them are direct not only from all the EU-Mediterranean cities, but also from the United States, and others will be direct very soon from the Middle East and hopefully also from the Far East soon.
So, having a home in the Balearic Islands…Being able to enjoy this magnificent climate throughout the year, first-rate connectivity and infrastructures, a high level of security that unfortunately is unthinkable in other European cities and countries, with a very diverse and cosmopolitan population, mentality open to others 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 first class gastronomy and great cultural and sports offer, as Mallorca and the Balearic Islands are a magnificent spot to practice all kinds of nature and coastal sports.
And as a nautical destination… it is very difficult to find another destination as beautiful as the Balearic Islands for sailing, due to the spectacular beauty along the coast of our four islands.
In fact, we are seeing it every day in the international press, the high profile visitors who come here every year with their outstanding super yachts to enjoy the outstanding beauty of our coastline.



Your eyes shine…
Yes, because this is truly such unique destination, it is a truly unique combination, and that is why so many people come to the Balearic Islands just to visit and when they arrive they decide to settle here permanently…
Who can blame them? We have 17 international schools, an excellent 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 distributed among the islands.
The offer is so wide, 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 that we have all the ingredients to position ourselves as one of the most attractive tourism 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 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 healthcare. 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.
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 health infrastructure, transport and all kinds of services that is perfectly prepared to accommodate much more.
The fact of being on an island always gives additional protection, the quality of the air, the protection of the sea, we are more collected here, and there are very interesting projects on the table very attractive to investors also in the field of health and wellness, alternative therapies, healing and medical recovery.
The proliferation of magnificent health and wellness centers, yoga, 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 and investors from all over the world to come here to take care of themselves, to relax, to heal, to recover, to live a more balanced, more 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…
Indeed. 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 right now, and at the same time give my family and myself a much better quality of life in a much better environment?»
Here the children learn more languages than growing up at their country of origin, and they grow up surrounded by nature and with a much healthier life.
This has incredible potential still ahead, and more in the current technological age, where we can work from anywhere.
The global demographic profile of millionaires has changed. In the called Emerging Markets, 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 for instance in Andorra because the government gives them many tax facilities.
It would be great to attract this type of investor, visitor or resident to Mallorca…
I want to highlight this, because I would like readers to know that here in Spain there are currently two very positive factors 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, including those who are not within the European Union. They can also opt and the procedure is already standardized, although it takes a few months, but this visa that allows completely free movement within the Schengen zone of the European Union.
This is simply amazing, because depending on which country you come from, it has a very important value. And after those two years, you and all your family, all your dependents, can enter automatically and then it is renewed for 5-year terms, until at a given moment you can even obtain residence, if you want.
There are outstanding law firms here specialized in these procedures.
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, and it is for entrepreneurs who move and establish their tax residence in Spain.
We have to take into account that once you have spent more than half the 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 obviously this is receiving increasing interest from international investors, businessmen and entrepreneurs who decide to come and live here, have a permanent residence and take advantage of these tax advantages.
I encourage all of them that they inform themselves in depth about these aspects, and they can contact us also so we can well guide them on these issues, because right now there are many more advantages of coming to live in Spain than is actually really known.
And with the important political change that has already crystallized in the Balearic Islands and the progressive elimination of outdated laws such as the Heritage Law, that has been already eliminated in practically all the countries of 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 increasingly considering to come, live and develop their business activity from here, so there is enormous potential for the Balearic Islands to become an important hub of knowledge, know-how, growth and digital innovation, especially for young businessmen or entrepreneurs from early ages.
We are a world tourism power, digital tourism development is already a reality and has great growth and success potential ahead.
For people who prefer the multi-residential option, Mallorca and the Balearic Islands are also an ideal destination.
Hans, we have reviewed in depth the real and potential advantages and strengths of Mallorca and the Balearic Islands. As everything in life is balance, what could you tell us about the challenges? What are currently the main concerns of the sector, yours as both Engel & Völkers and as of ABINI, especially in terms of Sustainability?
We have the challenge of ensuring that both first and second residence segments, these two realities of the real estate markets, can continue to coexist, and we have to focus on working on solutions for balance and sustainability.
One of the biggest challenges that we have ahead of us is that 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 have 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 to work in the summer and who need very different types of housing solutions than those who live here all year round.
We have to learn to respect private property, because the interventionism that was implemented here in the past was only looking for quick shortcuts that do not solve a structural and system issue. It is the cause that matters, that is where we have to enter.
We have to be aware of the importance of maintaining 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 model.
We have protected many areas, but now we have to recover our true connection with nature, which has severely suffered due to the sustained increase in activity in the tourism and services sectors, and which has also caused us to inexcusably abandon our fields and our forests, and therefore we also have the challenge and the responsibility to restore and to give the support it deserves to the primary sector through Organic Agriculture.
We have to carry out efficient and effective policies of forest management and, above all, we all have the challenge of understanding that sensitivity for our resources, for the environment, for our nature, is not exclusive to progressive ideologies, it is and must be a sensitivity and a commitment of all.
Centrist, liberal, whatever the ideology, we all have to contribute actively and we cannot wait for others to always do so, we must all get involved.
That is why I am also so passionate about the work we do at 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 you can see and you can measure, and in some way what you can also feel.
It 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 preservation Collective.
We generate support through economic resources, financing, management and visibility, covering all areas of the environment, the marine protection, biodiversity, renewable energy, education and awareness, and we each do it from our sector, from our own business activity.
We are very happy and satisfied with the development of the Mallorca PreservationFoundation and very grateful to all those who collaborate with us in the development of these objectives.
In Ibiza it has been running for 15 years and in Mallorca we started in 2017, we have generated over €500,000 in donations, and more and more local companies, businessmen and entrepreneurs are getting involved, so together we are creating a wonderful future to care for and to protect our wonderful territory.

Wonderful Hans, it has been a magnificent interview.
What would be your final message to all our readers?
I wish them to come.
To come visit us and see by themselves, because once they have the opportunity to enjoy our wonderful environment, they will not want to change it for any other place in the world.
And we can confirm that, because our clients, once they have come to visit, or to invest, or to stay and live here, they rarely ever leave these wonderful islands.
Here we are, waiting for them, with open arms and open hearts.
Private Office
– By Patricia Pal
Palma de Mallorca, October 16th 2024

Engel & Völkers Mallorca Southwest
Isaac Peral 50
07157 Puerto de Andratx
Tel: +(34) 971 67 47 80
WEBSITES:
https://www.engelvoelkers.com/es-de/private-office/
SPECIAL REQUESTS / PRIVATE OFFICE:
Karen Lauhus: karen.lauhus@engelvoelkers.com
LINKEDIN:
Linkedin Hans Lenz: https://www.linkedin.com/in/hanslenzmallorca/
Linkedin Karen Lauhus: https://www.linkedin.com/in/karen-lauhus-95941173/
BLOG:
https://ev-mallorca.com/es/sobre-mallorca
ABINI – BALEARIC ASSOCIATION OF NATIONAL AND INTERNATIONAL REAL ESTATE COMPANIES:
MAPF – MALLORCA PRESERVATION FOUNDATION:
https://www.mallorcapreservation.org
LINKEDIN ENGEL & VÖLKERS MALLORCA:
www.linkedin.com/company/engelvoelkersmallorca
FACEBOOK ENGEL & VÖLKERS MALLORCA:
https://www.facebook.com/engelvoelkersmallorca
INSTAGRAM ENGEL & VÖLKERS MALLORCA:
https://www.instagram.com/engelvoelkersmallorca
YOU TUBE ENGEL & VÖLKERS MALLORCA:
www.youtube.com/EngelVolkersMallorca
TWITTER ENGEL & VÖLKERS MALLORCA:
https://twitter.com/EVMallorca
TIKTOK ENGEL & VÖLKERS MALLORCA:
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