Co-ownership in Mallorca, a growing trend

Co-ownership in Mallorca is a growing trend. It offers to enjoy a flat or a villa on the seafront without having to worry about whether the swimming pool is in good working order or whether the property tax has been paid. And all this without having invested a large sum of money. Co-ownership is a new form of property ownership… shared. A practice that is going strong in the United States and has recently arrived in Mallorca, in response to the current problem of lack of plots of land and the increase in house prices and mortgages.

The popularity of this trend, together with the inauguration of the direct New York-Palma route by United Airlines this summer, has brought a new visitor profile to Mallorca. In addition to their high purchasing power, Americans are accustomed to this model which allows them to own homes in both towns and cities, in houses that vary in structure, budget and size. The number of homes bought by people with different surnames increased by almost 772% from 2010 to July 2021 in the United States, according to the firm Attom Data Solutions.

Property available for co-ownership in Mallorca. Photo: Mallorcasite.com.

“Shareholder” of your own home

“Co-ownership allows individuals to become shareholders in their dream home and access luxurious properties that are two to eight times their budget,” explains Gloria Rodriguez, co-founder and Director of Mallorca Site. Her company has already started offering property management or co-ownership services in Mallorca.

Forgetting the administrative aspect and maintenance of the property is one of the advantages of this model. Each owner has exclusive use of the property, selecting the days that are of most interest to them. Technological advances are used for this purpose. The weeks of use are reserved thanks to an application that is customised for each property and the key to the entrance door can only be opened when the shareholder has reserved the house. Another big advantage is that it is not as impersonal as other Airbnb-type options. Owners have their own storage for personal belongings. On a budget, they can have their crockery in the kitchen and their clothes hanging in the wardrobe when they arrive at their holiday home.

Four co-owners

Depending on the number of shares owned by each shareholder, they can use the house for more or less weeks per year. As Rodríguez points out, “the idea is to share the house between a minimum of two owners and a maximum of eight. The ideal is four. The running costs are shared between all of them, allowing them to enjoy a fully managed home and thus be able to sell the corresponding part when the time comes.

Rodriguez explains that the advantage of the island is that it welcomes people from all over the world. The holidays of the English, the Danish or the Swedish are not the same, nor are these clients looking for the same things. “While the Swedish enjoy the island in winter, the Germans prefer the summer, so the model works by sharing accommodation with other nationalities who are willing to invest in it,” she points out. In the case of Americans, this model works particularly well as they have few holidays a year and also cannot always travel to Mallorca as it is a longer distance flight.