The market for residential property on Majorca is booming. The 16 Engel & Völkers Residential Property Shops on the Balearic island generated a transaction volume (the total sale price of all properties brokered) of 402.7 million euros, representing a 38 percent rise in 2016 (2015: 292.1 million euros). The reasons behind this growth remain the high demand for premium properties and dynamic sales activities. Price levels also rose along with the transaction volume. The average price of homes sold in 2016 by Engel & Völkers increased by 13 percent, from 989,000 euros to 1.1 million euros. “Last year once again marks a record year for Engel & Völkers on Majorca. The positive development shows that residences in prime locations on the Balearic island are still considered an extremely attractive investment for international buyers,” said Florian Hofer, Master Licence Partner of Engel & Völkers on the Balearics.
High average prices in all regions on Majorca
Some of the very top addresses for real estate investments on Majorca are to be found in the southwest. The strong demand is centred here on the prime locations of Puerto Andratx, Santa Ponsa, Bendinat and Portals. Prestigious homes directly on the coast and exclusive new developments are particularly sought-after among the predominantly German, British and Scandinavian clientele. The average price for villas in Puerto Andratx last year started at 4 million euros. The main interest of buyers in the island’s capital Palma was directed towards townhouses and apartments in the old town, as well as the districts of Sa Gerreria and Portixol. Average prices from 3.5 million euros were fetched for townhouses in very good locations, with apartments costing upwards of 800,000 euros on average. The upmarket urbanisation Son Vida is especially sought after by German buyers. In 2016, the number of property sales doubled in this region. The average price for villas at the top end of the market started at 4 million euros. In the west of the island with the sought-after destinations Deià, Valldemossa and Soller, villas in very good locations cost upwards of 3.5 million euros. Pollensa and the coastal resort of Bonaire rank among the most desirable locations in the north. British buyers dominate the market here. The asking prices for apartments started at 400,000 euros and for houses and villas in rural locations at 6 million euros. In the northeast, sales figures in 2016 increased by 39 percent over the previous year. The average price for villas in prime locations here, such as in the historic town of Artà and the coastal regions of Betlem and Colònia de Sant Pere, started at 1.7 million euros. In the centre of the island, traditional finca-style estates in the villages of Santa María del Camí and Alaró proved very popular, as did properties in the south of the island around Llucmajor starting at 1.8 million euros. Prices for residential properties in the southeast, in the region around Santanyí, continued to prove extremely stable. The average price for an apartment in a very good location began at 350,000 euros, and for a house at 1.6 million euros.
Outlook: Property boom on Majorca set to continue
Majorca is one of the best known and most exclusive second home destinations in the world. International buyers are drawn by the mild year-round climate, the excellent flight connections, and the cosmopolitan atmosphere. In 2017, Majorca will remain a desirable hotspot for properties. Engel & Völkers Majorca forecasts that prices will rise again across all regions on the island. “The upward trend will continue. Confidence among international buyers in the stability of the Majorcan property market is set to remain high,” Mr. Hofer concluded.