Menorca Market Report 2014 · Menorca’s tranquil lifestyle attracts a certain type of buyer and 2014 saw some notable market shifts. Over the years, the local government has continued to impose strict building and development restrictions to ensure that the unique environment of the island remains ‘unique’. To date, it remains impossible to construct on rural land, regardless of how much land you have and this is why existing rural properties fetch premium prices, even if restoration or reform is necessary. This year modification of Menorca’s urban “Territorial Plan” has been approved by the local authorities and a softening of the current building restrictions for urban areas will, over the next months help the local construction industry to get moving again and also encourage investorment from outside of Spain again.
Traditionally, the island’s second home market had been dominated by the mainland Spanish market (particularly Catalunya), however, during the ‘crisis years’ even that market became non existant and foreigners were put off by the Spanish vendors insisting on unrealistically high house prices. In recent years it is the French that have become the major investors on the island, but gradually different nationalities are looking for property on Menorca, including German speaking, Scandinavian and Russian buyers. Today the demand is being focused on waterfront property with private mooring/ private sea access and there remains very little interest in new developments or plots of land.
In the relatively short time that Engel & Voelkers Menorca has been specialising on the island, sales have increased and there remain plenty of very interesting investment opportunities for new buyers.