The Balearic Islands are increasingly popular with international second home buyers: Finca prices are steady and luxury properties have a relatively quick turnover.
Results based on a recent study from 20 Engel & Völkers shops concerning Majorca, Ibiza and Menorca show that those with discerning lifestyles and a love of “escape” have been consistently buying second homes on the Balearic Islands.
With a strong 2012 in luxury property sales, the start of 2013 cemented this trend for international players in the local market. Stable prices among aspirational buyers ensured a consistent growth of the region over the last year.
Northern Europeans, specifically those from Germany, Austria and Switzerland, were the main buyers of residential properties, but their peers from Britain and Scandanavia had vacations planned in their new holiday homes on the islands as well.
The average sale prices for homes on Majorca currently range from 500,000 euros in Palma’s Old Town, to 750,000 in the northeast of Majorca, to 850,000 euros in the north and west, 900,000 euros in the south and 950,000 euros in the southeast. Average prices of 1 million euros are being achieved in the region around Palma, in the southwest and the centre of the island.
The time-to-market for properties is between six and 18 months. The study among the 20 Engel & Völkers shops found that exceptional homes in prime locations with beautiful finishes and touches tend to change owners significantly faster.
“This positive development indicates that buyers still have confidence in the property market on the Balearics. The islands rank amongst the most popular holiday regions and most sought-after locations for second homes in the world. With growing turbulence in the Eurozone and fears for the stability of the common currency, the prospect of buying a house on any of the three islands is increasingly seen as an attractive asset investment”, said David Scheffler, Managing Director of the regional office at Engel & Völkers in Spain. The Balearics continue to offer outstanding medium and long-term opportunities for secure and stable property investments.
Over the next weeks, we will describe more of the study’s findings. Our next article will be a more detailed view of the Majorca regarding regions and the most desired properties, and then we move onto the party mecca, Ibiza.
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For more information about the study contact: Julia.Grobecker@engelvoelkers.com