Engel & Völkers Mallorca Southwest 2013: A record year with huge success in the Premium Market
Hans Lenz, Managing Director of Engel & Völkers Mallorca Southwest is reporting a record year – the best since 2008 -with sales up by an average of 30% and 70% in the Southwest, where 40% of all property sales on the island were made last year. In addition, unprecedented multi-million Euro sales were made with a top sale of 10M Euros and an average sales value of 1.36M Euros. In south west Mallorca, Engel & Völkers has obtained 50% market share of sales in the premium market for properties of 7M Euros and above.
Last year demonstrated that buyers are seriously prepared and not hesitating to invest money once again in holiday homes. The average selling price of property outside of the southwest region has been in the region of 750,000 Euros. All E&V Shops report that buyers (mainly German speaking, British, Scandinavian and Russian) are making offers to purchase or rent faster than before and that more completed transactions are closed near to the asking price. Purchasers are strongly setting their focus on location and quality: when these factors combine negotiation margins tumble to 0 – 5% off the asking price.
Furthermore, sales to foreigners in the Balearic Islands have helped fuel the market and according to figures released by the Spanish National Notary Association, property sales to foreigners have doubled in The Balearic Islands since 2008 from 1,642 properties sold in that year to 3,571 in 2012. German speaking buyers account for 1 in 3 property purchases followed by Scandinavians, British and Russians.
Mallorca Southwest Sales 2013
Volume of sold properties in Mallorca Southwest License 96,5 M €
Average price sold property 1,36 M €
Average Negotiation Margin – 13,6%
Mallorca Southwest Rentals 2013
Average price of property rented by Mallorca SW 3.100 € / month
Average Negotiation Margin Rentals – 5%
With a presence of 16 Shops and a Team of over 100 professionals located in Mallorca, Engel & Völkers has in 2013 once again confirmed the market leadership in Mallorca and the Southwest of the island. The new year 2014 has had a vigorous start and we expect a sustainable growth in the Real Estate Market in Mallorca