Mallorca – a sun island on the upswing

Mallorca_Sun_Island_On_The_UpswingWith its heavenly sea, a fantastic climate and countless hours of sunshine, Mallorca is a popular destination for travellers. Who wouldn’t want to enjoy the mild sea air, hold an alcoholic Sundowner cocktail and sink their bare feet into the warm sand? Many people are so thrilled with the beauty of Mallorca that they seek a second home on the sun island.

In 2013, Engel & Völkers has bought as many properties in the premium segment as in any of the previous 15 years, in which the company is operating on the island. Not only the number of sales, but also the prices have increased significantly compared to previous years.

Peak prices per square metre currently range from €6,800 in the south, about €7,000 to €8,000 in the interior of the island, in the north and in Palma, €10,000 in the north-east, €18,000 on the west coast through to much more than €20,000 on the outskirts of Palma and in the south-west. For top properties in exclusive Puerto de Andratx, prices per square metre of up to €25,000 are now being achieved. In 2013, the highest purchase price for a luxury property brokered by Engel & Völkers was €10,000,000. In 2013, the average selling price for a villa with direct access to the sea, five bedrooms and very high-quality appointments (fixtures, fittings and furnishings) throughout the island was €5,000,000.

Buyers are getting younger

The upturn is mainly down to wealthy international second home buyers, who acquire properties predominantly without debt financing. According to the Spanish Chamber of Notaries, property purchases by foreigners on the three Balearic Islands of Mallorca, Menorca and Ibiza have, on the whole since 2008, doubled from 1,642 properties to 3,571 in 2012. The main buyer group of holiday and luxury properties in Mallorca comes from German-speaking countries, followed by customers from Great Britain, Scandinavia and Russia.

Location, high level of comfort and easy access

In demand are villas and penthouses as well as historic traditional finca-style properties in attractive locations with views of the sea and access to the sea or mountain views. In addition, new properties with high-quality technology and appointments (fixtures, fittings and furnishings) are very high in demand with potential buyers. They are partially sold “off-plan”, even when they are still in the planning or construction stage. Also very popular are attic flats and apartments with views of the sea and Palma Cathedral as well as historic townhouses (“Palacios”) in Palma, especially in the trendy hotspots of Portixol, Calatrava and Santa Catalina. Among the most important purchase criteria for all property types are location, high level of comfort and easy access to Palma city centre.

If you are looking for a property on Mallorca contact our local shops. We have offices all over the island that are equipped with stunning portfolios.