Menorca’s real estate market is witnessing a noticeably sustained rise in prices. According to Engel & Völkers, sale prices for residential properties have risen by some 15 percent all over the island in the last two years alone. The reason behind this trend is an increased level of demand for second homes together with an extremely limited number of properties on offer. “We have seen the largest price rises with villas and classic country estates in expensive coastal areas,” said Gary Hobson, Managing Director of Engel & Völkers Menorca.
Strict building regulations limit new construction
Villas in the less touristic coastal resorts of Binibeca, Es Grau, Sa Mesquida and Alcaufar are particularly sought after among buyers. Asking prices in this segment ranged from 900,000 to 3 million euros in 2017. Fincas with panoramic views of the surrounding countryside or the sea are also highly desirable. This type of property is rare, due to the strict building regulations that Menorca must adhere to as a UNESCO biosphere reserve. “New construction on undeveloped land plots is prohibited. That is why availability of fincas in particular is extremely limited and they come onto the market so infrequently,” said Gary Hobson.
There is currently new building development potential in tourist regions and the cities of Mahón and Ciutadella. Interest among prospective buyers is focused here particularly on townhouses. Asking prices for such properties ranged from 350,000 to 1.5 million euros in 2017.