Engel & Völkers Licence Partner Hamburg Projektvermarktung > Blog > Real estate market: Menorca emerging as residential and investment hotspot in the Mediterranean

Real estate market: Menorca emerging as residential and investment hotspot in the Mediterranean

Menorca is known as Majorca’s beautiful little sister. With its pristine natural scenery, picturesque bays and private beaches, the Balearic island is a veritable magnet for clients seeking an idyllic retreat in the Mediterranean. “Residential properties on Menorca offer particularly promising potential for returns, as prices are still relatively moderate compared with other destinations,” says Gary Hobson, Managing Director of Engel & Völkers in Menorca, who adds: “We are currently receiving a large number of enquiries, which reflects the growing interest from international clients in buying and investing.” In 2020 the number of online property enquiries rose by 30 percent over the same period in the previous year.

- (Image Source: Engel & Völkers Mahón)

Menorca is attracting buyers from across Europe

There has been a particularly sharp increase in demand in the premium segment during the pandemic. The average price attained by Engel & Völkers for the sale of a residential property passed the 1-million-euro mark in 2020 (2019: 890,000 euros). French buyers dominate the market on the island (50 percent). They are interested first and foremost in finding properties as restoration projects. Clients from Spain make up the second-largest buyer group (34 percent), followed by clients from Austria (8 percent) and Italy (8 percent). There is a strong demand for villas and penthouses with sea views, large gardens and pools.

The island is witnessing stable price developments in all regions

Es Mercadal and Fornells at the centre of the island rank among the highest priced locations. Historic estates designed in a typical Menorcan style with expansive grounds reached average prices of 2.5 million euros in 2020. Villas in very good locations in Cala Galdana, Son Bou, Santo Tomás, Arenal d'en Castell and Addaia changed hands for 1 million euros on average.    

Rich in heritage and tradition, the island’s capital Mahón makes up 27 percent of Menorca’s total residential property market. The largest natural harbour in the Mediterranean is located here, it is even the second largest harbour in the world right after Sidney in British Columbia. Apartments directly on the coast sold here for an average of 400,000 euros in 2020. Townhouses commanded average prices of 550,000 euros.     

In the east of the island, the picturesque port town of Es Castell, with prime locations in Sant Lluís and Alcaufar, ranks among the most desirable hotspots. The average price for beachfront villas in 2020 was 1.25 million euros. The Biniancolla region in the southeast saw the highest average prices for apartments on the entire island – at 500,000 euros.     

The municipality of Ciutadella in the west of Menorca makes up 37 percent of the total residential property market. The average price for apartments in 2020 was 300,000 euros. In the popular coastal locations around Son Xoriguer and Cala Morell, villas sold for 1.35 million euros on average in 2020. Country houses here attained average prices of 1.65 million euros.

Outlook: Menorca to retain status as Mediterranean insider tip 

With its convenient reach thanks to short flight times, and the authentic island lifestyle it has to offer, Menorca has always been one of the Mediterranean’s best-kept secrets. The increasing shift towards luxury tourism is palpable here, reflected for instance in the opening of the exquisite boutique hotel “Cristine Bedfor”. The renowned Hauser & Wirth Menorca International Art Gallery will open on the iconic Isla del Rey in Mahón in summer 2021, attracting art connoisseurs from around the world in future. 

The island has also been selected as the “European Region of Gastronomy 2022” thanks to its excellent culinary offerings and its focus on regional produce. “Menorca offers all the advantages of the Mediterranean lifestyle, as well as an unusually wide variety of different properties. Clients still have the opportunity to take advantage of the comparatively low prices and profit from promising prospects for future appreciation in value. Now is a good time to invest,” says Gary Hobson.

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