A turnaround has occurred in the commercial properties market. | Jaume Morey

TW
0

Commercial units that closed because of the pandemic are back in demand, Chechu Osinalde of commercial property specialists Gesmorent saying that they have been surprised by the level of activity - it is returning to what it was before the crisis.

A factor in this activity is that rents have come down. Osinalde explains that people aren't prepared to pay any price in order to be in the centre of Palma. Even major retail brands are thinking twice. The units that are proving to be the most difficult to rent out are those where rents haven't come down.

By the end of last year, there were 15% more empty units than there had been in 2019. But the situation has changed significantly, Gesmorent having been involved in 20% more transfers than in 2020. Prices are down by between 20 and 30 per cent.

The greatest interest at present is in restaurants. Some 60% of contracts that Gesmorent are signing are for this sector. In the centre of Palma, proof of the revival can be noted by the fact that reservations at the weekend have become almost essential.

Away from Palma, the situation is different. There has been that much less activity mainly because the tourism season was late in starting this year and also because of the level of uncertainty.