Renovation or New Build? – The Major Dilemma of Property in Mallorca

EM: In Mallorca, free plots of land are increasingly scarce, leaving many buyers facing a fundamental question: should they invest in the renovation of an existing property, or embark on a completely new build?

LH: The first step is a thorough analysis: what is permitted by the current planning regulations, what obligations or restrictions are recorded in the municipal archives or land register, what is the structural condition, and how can the spatial requirements of the new owner be accommodated? Only with this information can one make a well‑founded decision between renovation and new construction.

AT: A comprehensive renovation can ultimately cost as much as a new build – which is why a detailed cost‑benefit analysis is essential. There is a real risk of falling into the so‑called “renovation trap”: committing to a major investment without achieving the standards now expected by the Mallorcan property market, particularly in the segment of high‑end villas and single‑family homes.

EM: And what arguments are there in favour of renovation?

AT: Many existing houses have an intrinsic charm – through their location, history or architectural details. If the structure is solid and can be combined with modern technology, renovation can be a very attractive route. It allows traditional Mallorcan architecture to be enhanced with contemporary comfort and energy efficiency.

LH: One must, however, remain realistic: in some cases the limitations of the building are so severe that demolition and a new project represent the more logical and sustainable long‑term investment. Where a site offers exceptional potential – views, orientation, sunlight – it often makes sense to start afresh.

EM: What would you recommend to potential buyers?

AT: A detailed due diligence is indispensable. With the support of experienced architects, all relevant aspects can be examined – planning, legal, technical and financial. This provides the necessary security for making the right decision: renovation or new build.

LH: Ultimately, the aim is to create properties in Mallorca that not only stand out for their architectural quality, but also maintain a solid and sustainable value in the property market.