The impact of COVID-19 on the Mallorca property market: market values ​​remain stable

At the beginning of spring, the pandemic of the viral disease COVID-19 also entered Europe and fundamentally influenced the structure of effects of numerous social and economic systems. In order to slow the spread of the pathogen, various legal restrictions have also been introduced in Spain. Not only is it an unusual situation for real estate agents Engel & Völkers Mallorca, but also for prospective buyers and owners of country houses, houses and apartments, who face a certain degree of uncertainty: Will the current situation affect the value of my property in Mallorca? What will change the crisis in the relationship between supply and demand? How is my personal health ensured when buying property in Mallorca? In order to create a transparent and reliable information basis in this area, Engel & Völkers Mallorca answers the most important questions in this article.

Mallorca: Effects of COVID-19 on property prices and buying activity

Over the past 20 years, the property market in Mallorca has proven that its dynamism is not only extremely resilient in times of crisis, but is also able to revive an overburdened overall economy in the Balearic Islands: After the global financial crisis in 2008, the local economic cycle was able to add just under 11 billion euros since 2012 with the successful sale of houses, country houses and apartments to international buyers and investors . A look at this period also shows that the offer prices for residential real estate have hardly decreased during this time. Applied to the current Corona crisis, it cannot be assumed that a large number of owners of houses, country houses and apartments want to sell their properties. On the contrary: Real estate symbolizes security, stability and familiarity - values ​​that are of great importance these days. Although it can be assumed that fewer property purchases will take place in Mallorca within the next few months due to the legal regulations alone, the real estate agents at Engel & Völkers Mallorca expects that no significant price declines will have to be recorded, also against the background of the island's continued attractive location characteristics.

Why property prices in Mallorca remain stable even during the Corona crisis

For prospective buyers of high-quality houses, country houses and apartments, the current health policy situation does little to change the qualities that Mallorca has available for such an investment: The excellent infrastructure from the local transport network, shopping facilities, medical care and educational institutions, as well as the incomparable nature of Mallorca, continue to exude a strong appeal international buyers. Safety standards, comfort and quality of life are at the top level in Europe, the selection of exclusive residential properties is large. The large selection of innovative new construction projects will also add to the popularity of Mallorca as a property location in the future.

In addition, the preservation and promotion of the unique Mallorcan natural areas and traditional local production is becoming more important again: Official measures ensure that the purchase of a country house, house or apartment becomes even more attractive thanks to a pronounced awareness of sustainability. Thanks to the low infection rate in the Balearic Islands with COVID-19, the Balearic government is currently negotiating with Germany in order to ensure that air traffic to Mallorca will soon be working properly again. This way, the personal inspection of real estate on Mallorca is likely to be possible again in a timely manner. As soon as regulations and entry restrictions are lifted again, the real estate agent team at Engel & Völkers Mallorca expects a rapid increase in transaction volumes.

Buy real estate safely during the Corona crisis with Engel & Völkers Mallorca

Despite all the restrictions currently in force, Engel & Völkers Mallorca real estate agents continue to experience interest in country houses, houses and apartments by clients during the COVID-19 pandemic. The number of online inquiries is only slightly below the previous year's level, and many interested parties continue to stick to their long-term plans to buy property in Mallorca. With virtual tours and live video tours, we are already offering the opportunity to get a first impression of the property you want until the option of personal visits is open again. Fortunately, our real estate agents were able to carry out some transactions even during the restrictions within the past two months!

Engel & Völkers Mallorca stands for trust, competence and reliability even in times of crisis: As long as the phases in the opening of social life in Spain are carried out in small steps, our real estate agents will still be available to you by phone, video calls or email. We continue to monitor the current situation on the property market in Mallorca for you and provide you with regular updates on current economic and political developments - please contact us at any time!