Alibaz has been active in the construction sector for over 20 years, mainly in the luxury segment. How have you seen the evolution of this sector in Mallorca, and what characterizes the current status of the real estate boom on the island?
The evolution has been continuous, particularly regarding quality and design standards, which have improved significantly. Years ago, we started building homes of high quality by the standards of the day but looking back and comparing with what is being done today, the standards in terms of project quality, execution, and design have evolved dramatically. Mallorca is today a great showroom for luxury properties and design with the Mediterranean Sea as the backdrop. We are proud to say that Alibaz has been part of that important evolution, and our company has always paid special attention to providing a very personalized service. Alibaz has employees who are highly qualified and in constant training to acquire new skills. Our end-clients are highly demanding, and we, therefore, train our people to meet those high expectations.
How do you assess the investment opportunities available in Mallorca's real estate sector, and what are the main advantages to doing so?
There are many, and first one need only consider that Mallorca is located in a strategic location in the Mediterranean, which means also being in a great location within Europe itself. It is located three and half hours from any destination on the continent with capitals such as London, Paris or Berlin being reachable by a two-hour flight. And meanwhile, despite being an island, our geography is highly diverse. The island boasts mountains that scale 1,500m above sea level, coupled with paradisiac beaches, excellent infrastructure, hospitality and many other intangible assets that only those who have visited know well. It is because of these factors that people want to live in Mallorca. Besides, the public and private healthcare system is of the highest quality. The leisure sector has greatly improved over the years. There are numerous restaurants, shopping malls, and good hotels and sports facilities. The cultural scene is up and coming with many art galleries, in addition to museums. In Mallorca it is possible to do almost everything in a great location with extraordinary weather. Those factors together make the investment in property attractive. As a matter of fact, during the COVID crisis few homes have been sold at cheap prices. Prices temporarily decreased by 5%, but then quickly recovered. In fact, they have risen significantly because many people now have more freedom in terms of where to live and work.
What could be the average return on investment of a property in Mallorca?
Profitability is very high here, but it really depends on many factors such as location, type of property and design. As a matter of fact, we have many clients from Europe, the US or Australia who have done good business thanks to lucrative margins generated over the years. This location is highly desirable. Mallorca is one of the best-connected cities by air in the Mediterranean. In a weekend of the high season, which is between July and August, there are about 300,000 passengers, which reflects on people's interest in being in Mallorca. That interest is shifting from short weekend stays to long stays or actually residing in Mallorca, which fuels the real estate sector boom.
How has your company contributed to creating a Majorcan-architecture style and its current transition into a more sustainable model?
Alibaz is a construction company, and we depend on the designs of the architects and designers that we work with to bring that Majorcan style into our construction. For us, it is vital to have a design that is sustainable given the island's limited resources. More than 10 years ago, Alibaz was certified in quality and environmental protection in construction projects. In order to achieve that, we are committed to the fulfillment of several parameters to protect the environment. We do that by, for example, following a strict recycling policy. These certifications have to be renewed annually, which helps us to continuously improve our efforts to protect the environment. That being said, we are preparing ourselves for new considerations, such as homes with very high energy efficiency. Alibaz is getting ready to build such homes, which we believe can contribute greatly to the long-term sustainability of Mallorca.
What is Alibaz's standpoint on building digitalized homes and integrating domotics into its projects?
Digitalization is one of the fields to have evolved the most over the past 20 years. Currently all of the houses that we build are perfectly connected to a system of applications that can be managed remotely from anywhere in the world. People can set the system for low consumption, while not at home, and then increase those parameters when traveling to Mallorca. If you have an energy efficient home, you do not require a very high-level of energy consumption. The future of construction has to move towards energy efficient homes that are more sensitive to their local environment, while also increasing comfortability for the residents.