The Balearic Islands of Majorca, Ibiza and Menorca experienced a fantastic year in 2012 and an even better start to 2013. The region, which is famous for its dazzling beaches, is the archetypal island paradise for wealthy Europeans to buy their dream properties on, and it seems that more and more of them are investing in second homes on these Mediterranean shores.
In Majorca, the largest of the Balearic Islands, the average sale price for a home ranges from around 500,000 euros in Palma’s Old Town to one million euros in the southwest and centre of the island. Buyers tend to originate from countries like Germany and Switzerland, and although most properties here change hands in 6 to 18 months, prime homes in the best locations can swap owners very quickly.
Despite the island’s popularity with travellers, there are still several secluded neighbourhoods where full-time residents can enjoy the beauty of their surroundings in peace and serenity. The most desirable properties are those with good levels of privacy, comfortable interiors and great transport links to Palma. Meeting these criteria, investors can expect the right long-term rental property in the right location to pull in as much as 15,000 euros per month.
The island of Ibiza may conjure up images of 8-hour-long DJ sets and parties lasting well after sunrise, but the island is equally popular with the European elite, including several notable icons from the worlds of music, media and sport. Demand traditionally comes from British and Spanish clients, and the average sale price is near one million euros.
Away from the clubs, the island has a luxurious, bohemian ethos that many families find themselves returning to year after year. Rustic country houses with large grounds and cutting-edge contemporary homes are the most highly sought properties in Ibiza, where demand is currently exceeding supply. Over the course of the next year, it’s expected that prices on Ibiza will rise by a further 10 to 15 per cent, which is good news for those looking to invest as well as those looking to sell up and move on.
Finally, the real estate market in the easterly island of Menorca is also seeing strong demand from abroad, which means that prices are staying very stable. Homes with a sea view and direct access to the beach are the most highly prized, and although the average price is currently 780,000 euros, premium homes can sell for much, much more.
Menorca offers secluded havens alongside properties in more populated, tourist areas, creating an island retreat capable of catering to all kinds of customer. Traditionally, English and Spanish buyers are dominant in Menorca, but a 27 per cent increase in the number of interested home searchers has been predicted this year, particularly from French and Russian clients, so the island looks set to be come considerably more international in the near future.
If you’re interested in settling down on any one of the Balearic Islands, contact Engel & Völkers. Our expert advice will ensure you’re guided through every step of your investment abroad, ensuring that your needs come first throughout negotiations. Visit E&V Majorca for more information.