After several years of quiet trading, the top-end property market in Mallorca turned a significant corner last year: Engel & Völkers Mallorca sold more properties in the prime market in 2013 than any other year of trading since the German estate agency established itself on the island in 1999.
There’s a discernible buzz around the island right now. From the exclusive Son Vida estate which is celebrating its 50th anniversary, to striking new developments planned around its elegant capital city. Throughout the Tramuntana Mountains (now a UNESCO World Heritage site) E&V’s Tina Deutsch reports strong demand for rural property with privacy and views. Furthermore, in her central area, properties are selling faster; last year over 11% of properties sold within 3 months of coming onto the market. Down to the south alongside the island’s top beaches, the trend is for easy maintenance ‘beach style’ houses with clean and contemporary designs.
The south west
This is where the highest concentration of mega sales has taken place over the past few months, including one house that sold through Engel & Völkers for €10m. ‘That’s quite a big psychological barrier,’ explains Hans Lenz MD of the area. ‘Buyers come here because they know there’s still a big price differential between here and the south of France but the quality of life is still excellent. We’re seeing a big demand for cutting-edge modern architecture in the south west,’ continues Mr Lenz. ‘Increasingly clients want bespoke homes with fantastic views and everything down to the cutlery laid out ready in the drawers-the price tag becomes secondary.’
The north west
The tiny mountain village of Deià, where the poet Robert Graves had a house and which today is something of a honeypot for celebrities who come to enjoy the paparazzi-free streets and restaurants, has always been a challenging place to buy purely because of the scarcity in property. ‘Yes, the townhouses in the village have dropped in price in Deià but the fincas-especially those below the road and with sea views-will always be a safe bet,’ says Eddy Barrera, MD of the area.
‘Deià is a brand; it has tremendous cachet. We have buyers on our books who come from Germany, from Britain and mainland Spain and they’re prepared to spend €6m or €7m but there’s so little on the market and what is there, doesn’t remain for long.’
Business is booming, reports Gary Hobson, the managing director of Engel & Völkers North, which includes the town and port of Pollensa- traditionally a favourite with British buyers who enjoy its more relaxed, family-friendly atmosphere.
‘We had Prime Minister David Cameron and his family staying recently. And in the outer season, we attract painters, walkers and cyclists (the Sky team camp is in Alcúdia).’ The market again for the high end properties-from over €1m-is growing fast. ‘What’s really telling is that buyers are no longer sitting back on their heels assuming that prices will continue to fall if they wait. Those that are going away are coming back disappointed when the property they had their eye on has sold.’
Find out more at Engel & Völkers Mallorca or read their latest market report on the property market on Mallorca.
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