- High demand for premium real estate leading to continued price increases
Hamburg, 27 July 2015. The market for second homes on Majorca is witnessing an upward trend at present. Having achieved a significant rise in turnover in the first quarter of 2015, the 16 residential property shops on Majorca sold 27 percent more properties in the first half-year of 2015 than in the previous year. There is particularly high demand for the most luxurious properties in prime locations. This is reflected in a ten percent rise in sale prices at this top end of the market over the first half-year of 2014.
The strongest regions on the Balearic island in terms of sales include the fishing village of Puerto Andratx in the southwest. “Engel & Völkers had the largest market share in Andratx in 2014, with 70 percent,” said Hans Lenz, Managing Partner of Engel & Völkers Majorca Southwest. 40 percent of all sales here were with foreign buyers. Overall, prices in southwest Majorca rose by approx. 10 percent over the previous year. Entry prices for villas are between 4,000 and 12,000 euros per square metre. Further hotspots in the region are Bendinat, Portals and Santa Ponsa.
Other parts of the island are also seeing a stable to growing trend in property prices. In the capital Palma, apartments with a balcony or terrace overlooking the marina or old town are in high demand. Prices have risen by 10 percent on average over the previous year for properties of this kind. For a two-room apartment, prices per square metre range from 4,000 and 9,000 euros.
The exclusive residential neighbourhood Son Vida is currently experiencing a veritable boom, with sales figures in the first half-year of 2015 having tripled over the same period in the previous year. Prime homes in a contemporary style here are fetching upwards of 600,000 euros. Prices for modern villas start anywhere between 2 and 5 million euros.
Prices in the west of the island are currently stable. Villas start at 1 million euros and can reach anything up to 6 million euros in direct coastal locations. Freehold apartments currently cost between 350,000 and 550,000 euros, depending on their location, size and fitting standard. Popular places for homes in this region are Deià, Soller, Valldemossa and Fornalutx.
In the centre and south of the island, Engel & Völkers has recorded a 120 percent rise in sales transactions compared to the previous year. There is a stable rise of up to 10 percent in prices for homes in the very best locations. Entry prices for villas with sea views range from 4 to 6 million euros. Whilst there is a high interest in traditional finca-style estates in inland areas, interested buyers are tending to look for homes with modern architecture on the coast. Townhouses and apartments in Majorca’s inland regions are also in high demand.
Hotspots in the north include Pollensa Town and the Port. Additionally, interested buyers are increasingly looking to the coastal regions of Mal Pas and Alcanada. Villas here start at 1.5 million euros. Moreover, there is an upward trend on the market for freehold apartments, with price rises of approx. 5 percent. The price per square metre is between 4,000 and 11,000 euros at present.
In the northeast, buyer interest is focused around properties in the approx. 500,000 euro price segment. Prices for a two-bedroom home here with sea views are starting at around 3,000 euros per square metre.
Residential properties in the southeast also remain extremely stable in value. Prices for a two-bedroom apartment start at 250,000 euros, with villas on the market from 850,000 euros. Properties costing between 300,000 and 3 million euros are attracting the greatest level of buyer interest.
International buyers are ensuring stable level of demand
Majorca is a desirable second home market thanks to its attractive location in the Mediterranean and its mild climate all year round. Especially buyers from Germany, the UK and Scandinavia show a strong interest in exclusive properties. The high level of interest from these buyer groups in real estate on the Balearic island is contributing to the overall stability of the property market. For the remainder of the year, Engel & Völkers is forecasting a continued upward trend in prices in sought-after second home locations on Majorca.
For further information please contact:
ENGEL & VÖLKERS AG
Princess Bettina Wittgenstein
Head of Global Corporate Communication
Phone: +49 40-36 13 11 20
Fax: +49 40-36 13 12 35