Mallorca was not only a favourite holiday spot this Easter with visitor figures up overall by 7.17% representing a further 495,000 visitors over this time last year (source: AENA). A surge in visitors also benefits the real estate industry and according to Engel & Völkers, the leading international real estate brand on Mallorca with 16 offices around the island, this quarter was one of the best in a decade with a 20% increase in properties sold over the same period last year. A range of properties have been sold in this period with greater demand for new developments, apartments and plots.
According to the latest information released by the Spanish Government’s Ministerio de Fomento, the volume of sales made to foreign buyers in the Balearics Island in 2014 totaled 976M Euros. These figures indicate the sustained growth in investment from overseas buyers and in just five years, the total value of transactions made in the Balearic Islands has more than doubled from 494M Euros in 2009. Engel & Völkers, with 19 offices across the Balearics Islands, now has a 30% market share of the real estate business in this region and anticipates that total sales could reach 1Billion Euros in 2015.
The Balearic Islands economy has now turned a corner with expected growth by + 2.4% in 2015 ahead of + 2.1% economic growth predicated for the rest of Spain. Obviously tourism plays a key role in the strength of the Islands’ economy and in 2014 foreign investment in tourism in the region totaled 145M Euros (source: Exceltur).
Recently voted overall as the best place to live in the world (source: Sunday Times), the city is thriving with new designer boutique hotels, shops and restaurants opening. The demand for apartments with an outside terrace or sea views is now outstripping supply. Prices per square metre are starting to increase by 10-15%, restored properties start at approximately 3,000 sqm – 9,000 sqm.
New Development – scheduled for completion July 2015 – overlooking the fashionable Portixol Harbour area just outside Palma and 10 minutes from the international airport, the Marina Plaza 2 development is scheduled for completion this summer. To date 13 of the 32 units have been sold valued between 1.2 Euros – 3M Euros. Buyers include German, British, Swedish, Swiss and Spanish.
In the exclusive residential area of Son Vida the E&V office reports that sales doubled this Easter reporting the best sales figures for this period in 7 years. Investors from Germany, the UK, Switzerland, Norway and France have been looking for a new second residence and many for a family home where they can enjoy the facilities of 3 top golf courses and a choice of international schools nearby. They are looking for substantial modern contemporary style properties from 2M Euros to 6M Euros.
In addition, there’s renewed interest in plots, contemporary designer houses. Inland there’s more demand for classic Mediterranean fincas and village houses.
South West: E&V reports the best sales activity this quarter in a decade with demand for a range of property from 500.000 to 10M Euros. However, the success story for this area in the last few weeks has been the launch of two new off plan developments.
The new Elements Portals development is close to the beach and Puerto Portals marina. Since its launch 5 weeks ago, 70% of the 31 residences have been reserved and a penthouse has already been sold for a record price of 6.5M Euros. Over 30% of the buyers, which include Germans, British and Scandinavians, are existing investors and already own a home on the island.
In addition, the new ecofriendly beachfront development of 29 apartments called Torre de Mar at Camp de Mar has been launched successfully with a third of the development already sold/reserved. It is located close to the golf course and Puerto Andratx and prices range, for the remaining 2 -3 bedroom apartments, from: 725,000 Euros to 1.5M Euros.
Central & South: This spring was busier than last with increased interest for fincas with land, townhouses and plots, which are now selling in top locations. In the villages the townhouse market is coming back and there’s more interest in apartments.
South East: Here British, German speaking and French investors are looking for either fincas or frontline properties with sea views. The planned motorway extension (between Llucmajor and Campos) 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 from Palma International Airport).
North East: This area offers good value for frontline and rural property with buyers looking for fincas and villas with a budget of 500,000 Euros to 1.5M Euros. Here the entry price for a property with sea views starts at 3,000 Euros per sqm for a two bedroom apartment.
North: This quarter sales are up by 25% over the same period last year in terms of number of sales and value and properties sold range from 250,000 Euros to 3M Euros. The British now make up 80% of our clients in this area and they tend to be looking for the larger properties 1M to 3M Euros. The apartment market is now moving again.
West: This quarter has been busy with the return of British investors, German speaking and Scandinavians. There is increased demand for property in the 1M to 3M Euro price bracket with interest in apartments in Port de Sóller, townhouses in Sóller and fincas in Fornalutx. In the ever popular villages of Deià and Valldemossa investors are mainly looking for villas with swimming pools and sea views if possible.
A selection of over 2,500 properties is available on the website where the latest 2015 Market Report can be downloaded here in several languages.