Tuesday, October 19, 2010

Intensive Uncared-for Units

"Look at all these places that are closed." I had bumped into a mate in Puerto Alcúdia. There were a number of "locales" that were empty. The tell-tale signs of abandonment were clear - whitewashed glass, mail piling up on the floors inside, fraying posters for this and that fly-billed onto the exteriors. "Yea, but they're units under the apartments. It's no wonder. They stick these places up, and on the ground floor they always have 'locales'. There's just too much of this stuff."

Too much. Too many bars or cafés, too many shops. There is too much of everything. Too little of what matters. Demand.

The economic crisis has served to highlight what should have been obvious - the over supply of bars and shops. Perversely, the crisis has not reduced the supply, it has seen it increase, thanks primarily to the units that sit, mainly empty, under residential buildings.

The reason for these units is the consequence of a land law in the Balearics, one that has not been adopted elsewhere in Spain. The law goes as follows. There has to be a limit to the number of apartments per building. Were the ground floor to also be used for residential purposes, the average size of all apartments would have to increase. A solution, that of making buildings lower, isn't a solution when it comes to the owners of land who want to maximise their returns. Another would be to scrap the law on the maximum number of apartments, so long as their sizes do not go below a minimum.

One view in favour of ground floors being reserved for commercial use is that people simply don't want to live on the ground floor. It's an understandable view, but only up to a point. Not wishing to be on the ground floor may have more to do with where the buildings are constructed rather than with a reluctance per se to inhabit a street-level apartment: a thoroughfare in Puerto Alcúdia is probably a case in point. But even this ignores the fact that houses, of older stock, open out onto narrow pavements right next to busy roads all over the island.

The downside of the regulation, apart from adding to the unnecessary supply of units, is that the buildings end up creating an impression of reducing desirability rather than the one that you would hope they would - that of increasing desirability. And this applies not just to the building itself but also to the general environment. Empty units benefit no one, but the mystery is why anyone thought that they could keep being created and keep being filled. Where they have been occupied, and some have been in Puerto Alcúdia, they have then become unoccupied. The crisis is not solely to blame; there is just no point to most of them.

The surfeit of bars and cafés should be enough to make any prospective tenant of the under-apartment "locales" wary of handing over his traspaso or, if he has any sense, just the rent. Other types of commercial exploitation should be met with a far bigger "buyer, beware" sign. What, for the most part, have they been? Fashion shops, if Alcúdia is anything to go by. They might also have been gobbled up by the johnnies-come-lately of the estate agency world, but the carnage in this market has robbed the units, as it has the island's high streets in general, of their absurdly excessive presence. For the fashionista chicas who take on a unit, there is something else to bear in mind, not just the fact that their shops are an irrelevance. This is the relaxation of rules on commercial centres. Out of town, in other words. The pointless units become even more pointless as consumers shift their own centres of operation.

The law needs to be changed, but any reform should be more fundamental in terms of more coherent appraisals as to the style of towns such as Puerto Alcúdia where residential and commercial building has created a functionalist mish-mash of architecture. Attention should be paid to greater harmony in terms of the look of buildings and also to the introduction of semi-pedestrianisation. This might, for example, enable the apartment blocks to be shielded by gardens at their entrance, enhancing their appearance and greening the dominant and characterless sense of concrete.

If a change means the government and town halls interfering with the market and telling owners that the ground-floor "locales" have to go, that they have to stick to reasonable prices and they lose the rents from the units, then so be it. They're not gaining rents as it is, while everyone else is losing out.


Any comments to andrew@thealcudiaguide.com please.

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