Wonderful beaches, magnificent bays and glorious mountains are all part of the diverse landscape that makes the north of Majorca a many-sided paradise and an ideal place to buy a property. If you are thinking of buying a property in the north of Majorca, our latest market report 2021/2022 will give you a valuable insight into the latest developments within the real estate market. The island, with beautiful towns such as Alcudia, Pollensa and Puerto Pollensa, continues to be one of the most appealing destinations for European second home buyers, resulting in the demand for properties remaining high in Mallorca. Among other interesting facts, the latest market report provided by estate agent Engel & Völkers Mallorca includes a complete breakdown of current property prices.
Buying a property is investing in a secure, long-term investment. The real estate agency Engel & Völkers Majorca North substantiates this statement in their new market report 2021/ 2022, since 2012 the average annual increase in property value is 9%. In the Balearic Islands, the market report reflects that the number of transactions has also increased significantly compared to 2020. Our Engel & Völkers team recorded the most successful business year in the company’s history in 2021 and has achieved a transaction volume of around 891 million euros, which is an increase of 113% compared to 2020. The average purchase price for properties in Balearic Islands also increased in 2021. We also achieved a new record closing 568 real estate transactions in 2021, an increase of 95%.
Seafront properties, as well as country houses were and still are the most wanted homes. Favourite locations include Alcudia and Pollensa, as well as the municipalities of Campanet, Búger and Muro. In prime locations such as Formentor the average price is 6.5 million euros, which is due to the very limited supply of properties. In the coastal towns of Alcudia, Puerto Alcudia and Puerto Pollensa, houses sold for 2 to 2.7 million euros, and the purchase price of apartments in these privileged locations were on average 450.000 euros, while in Alcudia and Pollensa they ranged between 350.000 and 400.000 euros.
According to our current market report, the dynamics of the real estate market in Majorca is generally defined by a high demand for properties and a decrease in the number of properties being offered for sale. This development is evident from the factual observations recorded by Engel & Völkers, last year more properties were sold or withdrawn from the market (59%) than those coming onto the market (41%). Finally, the price label for properties in general reached a new record with an index value of more than 150% in 2021. Combined with the fact that the benchmark interest rate for mortgages has fallen enormously in recent years into a low interest rate environment and a reversal of this trend is imminent, right now buying a property in the north of Majorca is a safe investment, which will certainly pay off.
In the market report 2021/2022, our experts forecast a stable market in Majorca. The government of the Balearic Islands is planning investments of 680 million euros during 2022 that include infrastructure projects, the construction of rental flats, aid and subsidies for air and sea transport. The allure of the island will continue to increase, guaranteeing a high demand for real estate. It really is a good time to purchase a townhouse or villa in the north of Majorca.
Real estate agents Engel & Völkers, is the market leader in the brokerage of residential properties in Majorca, let us help you with your new project in the Mediterranean. Our diversified buyer groups reflect the popularity of Majorca as an ideal second home destination, especially Germans, British, Spanish, Scandinavians, Swiss, Austrians and French house buyers are investing in the north of Majorca with Engel & Völkers.