An interview with Hans Lenz,
President of the Balearic Real Estate Agency Association ABINI

Abini was founded 3 years ago, could you please tell us why the association was created at that time and its mission?

The birth of ABINI has much deeper roots and a longer history than three years. The Real Estate Industry on the Balearic Islands has strongly professionalized in the past 10 years and as a result of this it has become more important to work in unity. ABINI was created in order to establish a solid exchange group amongst local and foreign real estate agencies that operate in a similar segment and which now can promote a representation, defend client interests and work in unity with other Real Estate Agency Associations and stakeholders of the industry in order to shape the future of housing on the Balearic Islands.

What would you say are the main characteristics of all the real estate agencies associated with Abini?

We are often marked as the luxury real estate agencies, but we think that this is an approach that leaves out too much detail. All of the members of ABINI are integrated into local society and follow strict work ethics. Once an applicant fulfills the formal requirements set below, the Association will vote on the incorporation of a new member.

1. Possess a higher or official academic degree.
2. They must have at least five years of experience in the real estate sector.
3. They must comply with the legislation in force regarding the Prevention of Money Laundering and Data Protection.
4. To be up to date with the payment of the Social Security and the Tax Office.
5. To have a civil liability insurance policy to cover their professional activity.

It is not the objective of ABINI to grow in size, but to accelerate the interaction between real estate industry members and engage with the Authorities in order to protect consumer rights and ensure a sustainable housing market on the Balearic Islands.

Since the pandemic, instead of slowing down, the real estate market in the Balearic Islands has had unstoppable growth, what is your summary on these past two years?

Covid had an enormous effect on the speed within the Balearic real estate market and this also generated a growth in prices. The artificial effects of this global change have now calmed and we will enter into a more reflexive period, where sharply risen interest rates, inflation and policies will shape the nearest future. One of the main summaries after the period behind is that the Balearic Islands are an incredibly attractive location for a better living and that we must make an extra effort in securing affordable housing for the local population with realistic measures that have proven to work elsewhere in the world.

What is your opinion of the plan to limit the purchase of homes by non-residents/foreigners in the Balearic Islands?

It is an illegal proposal according to Spanish and European Laws. Its promoters would do much better in collaborating hand-in-hand with the real estate industry in order to work on realistic solutions. The sector will not refrain from offering its support, no matter how politicized certain actions are.

What about the new regulation of real estate agents in the Balearics?

The regulation of the real estate agent activity was a long overdue and is a highly welcome action. The framework, which puts the consumer in front, provides guarantees for any client of a real estate agency, brings transparency and public registries so consumers will know if they are operating with someone legally approved. The law has received total consensus and support from the Balearic Real Estate Agency Associations, which highly appreciate a law that will lift the level of professionalism in an activity that generates 25% of the Balearic Islands GDP.

How would you describe the profile of the clients/international community investing in the Balearics?

Having grown up in Mallorca as a son of a German and Spanish couple, it will never stop fascinating me to discover the beauty of the attraction and the diversity of the people who arrive in this blessed space within the Mediterranean. The vast majority of persons who invest in the Balearic Islands are very respectful and knowledgeable with this land, its nature, culture, heritage and people.

How do you see the evolution of the real estate market on the Balearics as a top destination for non-residents and international investors with all these Government plans on the agenda?

We see more common sense in society than in politics. A global problem within modern policies is that they address the need and anger of persons and manipulate this into a political agenda that becomes populistic and untruthful. The common sense of society will prevail and for this it will need to speak up. I invite all foreigners with residency on the Balearic Islands to do so in the local elections on the 28th of May 2023. This is a democratic right that we all should exercise, regardless of our political inclination and beliefs. Foreigners who wish to participate must register before 15th January 2023 and will find more information on votebaleares.org.

What are the most critical and immediate points on the agenda of Abini?

The application of the new Real Estate Agent Law starting at the beginning of 2023, disconnecting the wrong message that foreign purchasers are responsible for the sharp rise in prices and working on solutions for the housing market with the remaining industry stakeholders.

What is your favorite Sunday plan in Mallorca?

After a good read of the Sunday newspapers, these will always be a relaxed and private family and friends programme.