AUTUMN RUSH FOR PREMIUM PROPERTY IN MALLORCA
- E&V Spain reports strong autumn sales - 21% ahead over 2013
- Record price achieved on Mallorca of 27,000 Euros per m2
- German, British & Scandinavian buyers strongest
December 2014 Engel & Völkers, with 16 shops in Mallorca, 2 in Ibiza and 1 on Menorca, is reporting a strong sales outlook over the same period last year with a final rush of deals leading up to the close of this year. Overall, Engel & Völkers Spain announced sales increase of 21% over 2013 for the period up to October of this year and mainly attributes this increase to the impact of foreign second home investors.
In Mallorca demand for property over 1M Euros continues the trend with the average spend ranging from just under 1M Euros in the north to 1.9M Euros in the south west representing a 27% rise over the average spend in 2013. E&V Mallorca is reporting a 25% increase in sales for the year up until the end of October 2014.
In the south west a record square metre price of 27,000 Euros m2 was achieved this summer for a sea front villa in Puerto Andratx and all sea frontline locations are in demand. In this corner of the island where over 40% of all sales to overseas buyers are made. Investors are attracted to the unique combination of quality property, excellent lifestyle options and infrastructure. This year sales performance in this region (up until end October) is running at 37% ahead of 2013.
In Palma sales are on a par with last year rising by approximately 10% for the Portixol/Molinar areas just outside the city’s old town. Demand is focused on penthouses and apartments with outside space and views. Buyers are this year now making decisions faster as they realise that property is not staying on the market as long.
In the centre and south of the island E&V is reporting more sales activity for properties and increased demand for plots. Prices are stable with exceptional price increases for sea frontline positions. Some non European investors, from America, Canada and Australia have been encouraged by the Golden Visa and buyers are spending from 500,000 – 2M Euros with an average spend of approximately 1M Euros.
In the north sales activity has doubled with more interest from British clients. Prices for apartments remain stable in this area with increases for quality rural properties. This year the average spend is approximately 838,000 Euros with buyers’ making decisions faster. We have noticed greater interest in the Alcudia and Bonaire areas which are only 40/45 minutes by car from Palma and both locations offer a great range of properties for ranging from €300.000 to €35.000.000. Bonaire also has a small, well served, marina and the popular Alcanada Golf course is nearby.
Along the coast to the north east although sales activity has focused on the top end with demand in the 2 – 4M Euros bracket. This year there has been more interest in good plots and clients are mainly German speaking.
Down to the south east around Santanyi the demand is for all types of property from 500.000Euro – 1, 2 M Euros. Everyone wants a sea view whether it’s a villa or a rural property and more buyers this year are looking for a rental investment. All sales have been made to European buyers and average spend is just over 1M Euros.
Generally prospects for the year end remain positive with more sales expected to close at the notary over the Christmas/New Year period. www.engelvoelkers.com