The Mallorcan summer has arrived and still the island is as popular as ever. The positive sales development in 2013 could be continued this year. So Engel & Völkers Mallorca has seen an increase in sales of 63 % in the first quarter of 2014. Scandinavian, British and Russian customers increasingly invest in addition to German buyers. Furthermore there are first inquiries from Chinese investors.
Almost all investors are cash buyers – who are largely looking to spend at a price range between 500,000 and 2 million € for a property – without financing needs. Although all types of properties are in demand, particularly the market for apartments seems to be of interest.
Palma Old Town: Demand is focused on apartments with outside space. Square metre price increasing by 5% to 10% and in the area around the city’s elegant main “El Born” boulevard which is now locally referred to as Palma’s Golden Mile, there’s record demand for property and sites (for rent/purchase) for international luxury brands. Palma’s revival is underway and the city is set to become a destination in its own right.
Son Vida: E&V is reporting a 30% sales increase in this first quarter over the same period last year. Furthermore there are 50% more clients actively looking in the area which is regarded as one of the first exclusive residential developments centred around the largest Golf Resort in Spain and two five star hotels. In Son Vida investors are developing modern, ambitious new projects with the latest technology which are attracting northern European buyers.
South West: Here the first quarter’s sales were 25% up of the same period in 2007, which was the best recorded year ever for this region. A total of 23 sales have been completed this year to date with one record sale of 18M Euros and five sales over 2M Euros. Strong demand continues for seafront villas in the Southwest of Mallorca and this region first requests from Chinese investors have been received.
Central & South: In this area Easter was busier than last year with increased interest for fincas with land, townhouses and plots and there’s more interest in apartments.
South East: The warm Easter weather brought out more buyers than last year who are looking for either fincas or firstline properties with sea views. Now more British, Dutch and French investors are looking in this area. The local government has announced the extension of the motorway to this area (between Llucmayor and Campos) next year which will cut down the journey time to Palma Airport by approximately another 10/15 minutes (currently the drive time to Santanyi is approximately 50 minutes).
North East: Here mainly German speaking buyers are looking for fincas and villas with a budget of 500,000 to 1.5M Euros. Work is now underway to develop the new five star Hyatt Hotel at Canyamel (scheduled to open in 2016) which is attracting some interest for well priced frontline property.
North: British and German speaking clients are buying in this area with a significant increase in Scandinavians. In this first quarter there’s been more interest in apartments than in the whole of 2013 with continued demand for fincas with land and first line villas with sea views. Buyers are noticeably moving faster to secure property. Although investors tend to be cash buyers we have noticed a positive upturn among the main banks which now appear to lending to foreign investors once more.
West: This quarter is much busier than the same time last year with interest for apartments in Port de Soller, townhouses in Soller and Fornalutx. In the ever popular villages of Deia and Valldemossa, investors are mainly looking for villas.
The latest market report can be downloaded in several languages: www.engelvoelkers.com/mallorca