Demolish and rebuild or refurbish?

Generally speaking, attractive building plots are hard to come by in Majorca, especially in coastal and urban areas. This is why many buyers decide in favour of buying an existing property.
When buying an existing property, the question then arises as to what makes more sense: to refurbish a property or to demolish it and build a new one. The decision between demolishing an existing building and building a new one or carrying out a core refurbishment is a complex one that needs to be carefully weighed up. Especially in Majorca, where local building regulations and specific market conditions need to be taken into account, a thorough analysis is required to determine the best course of action.

Local building regulations and authorisation procedures in Majorca

In Majorca, construction projects are subject to strict regulations that are regulated by the local government and the municipalities. These regulations significantly influence the decision between demolishing and building a new house or refurbishing the core. Here are some of the most important aspects:

Building permits:

Planning permission is required for both demolish and rebuild and core refurbishment options. The application process can be complex and time-consuming, especially in protected areas or for listed buildings

Listed buildings:

Many buildings in Majorca are listed. In these cases, demolition is often not possible or only under very strict conditions. A core refurbishment is usually the only option here

Building zones:

The island is divided into different building zones that stipulate certain building heights, densities and types of use. New construction must comply with these zoning requirements, while refurbishment in existing structures often offers more flexibility

Environmental regulations:

Projects must comply with local environmental regulations, which can be particularly strict in order to preserve the natural beauty and ecological balance of the island

Advantages and disadvantages of demolition and new construction

Advantages:

• Modern technology and materials: new builds allow the latest technologies and materials to be utilised, resulting in energy efficient and sustainable buildings
• Flexibility in design: New construction offers the freedom to design the building from scratch according to current needs and trends
• Increase in value: A new building can significantly increase the value of the property, especially if it is in an attractive location

Disadvantages:

• Cost: New builds are generally more expensive than refurbishments as the costs of demolition, disposal and new build are higher
• Authorisation procedure: Obtaining the necessary authorisations can be lengthy and bureaucratic
• Time required: New-build projects often take longer, from planning to completion

Advantages and disadvantages of core refurbishment

Advantages:

• Preservation of original characteristics: Existing buildings, especially historic buildings, retain their unique character and charm
• Cost efficiency: A core refurbishment can be cheaper than a complete new build, especially if the basic structure of the building is in good condition
• Speed: Refurbishment projects can often be completed more quickly as they require fewer authorisation procedures than new builds

Disadvantages

• Unpredictable costs: Unexpected problems can arise during refurbishment, resulting in additional costs
• Limited design options: Existing structures can limit flexibility in design and modernisation
• Energy efficiency: It can be more difficult to bring a refurbished building up to the latest energy standards compared to a new build
• Illegal parts of the building are generally not allowed to be refurbished

Economic considerations and market conditions

In Majorca, the demand for property, both for personal use and as an investment, is high. The choice between demolishing and building new or refurbishing should also take economic factors into account:

• Market value and demand: new builds can achieve higher demand and therefore higher sale prices. However, the preservation of historic buildings can also be attractive to buyers who appreciate the charm and authenticity of the island
• Building costs: Building costs in Majorca have risen in recent years, affecting both demolish and refurbishment projects. A precise calculation of costs is therefore essential
• Yield: Investors should consider the potential yield of both new build and refurbished properties. Rental and sales prices vary depending on the location and quality of the property

Conclusion

The decision between demolishing and rebuilding or core refurbishment of a building in Majorca depends on numerous factors, including local building regulations, the specific conditions of the existing building, economic considerations and the client’s individual objectives. Thorough analysis and advice from professionals is essential to make the best decision.