Buying property in Menorca - Current market developments

2022 was a record year for the real estate market in Menorca. Some of the reasons for the rediscovery of this little Balearic island as a perfect holiday and residential destination, and the increasing interest in local houses, villas, fincas, and apartments, include the mild Mediterranean climate, easy accessibility combined with expanded flight and ferry connections, untouched natural beauty, the active preservation of the island and last but not least, the excellent gastronomy and cultural offerings of the island.

The return to normalcy after the restrictions of the COVID-19 pandemic has also contributed to the increased demand for properties in Menorca, according to the latest Engel & Völkers market report. The majority of buyers coming from mainland Spain and other European countries.

Market report confirms high demand for properties in Menorca

The demand for houses, villas, and apartments is currently at record levels on the Balearic Island of Minorca. Real estate agents Engel & Völkers Menorca are observing increased interest in properties along the coast of the island, and simultaneously a lower demand for properties inland.

Menorca appeals not only to domestic buyers but also to international clients. In the past year, 42% of buyers were from mainland Spain, particularly Barcelona and Madrid, while 16% of interested parties were French. Other buyer groups include the British and Americans, each accounting for 10%, while 6% of property sales in 2022 were made by Germans. The majority of potential buyers are searching for a holiday home or a second residence as a retreat, to escape the hustle and bustle of their primary residence during vacations.

2022 Property Prices in Mahon, the centre of the island and Ciutadella

One of the most sought-after residential areas in Menorca is the capital, Mahon and the South East towns of Es Castell and Sant Lluís, which constitutes 25% of the apartment market. The increased interest in Mahon and the South East properties, drove prices up in 2022. The average prices for apartments last year were around €400,000, while townhouses averaged €750,000, and villas were priced at €1.75 million.

In the centre of the island, which includes Ferreries, Es Mercadal, Es Migjorn Gran, and Alaior, property prices remained relatively stable. Specifically, in 2022, townhouses were priced around €250,000, and fincas (country houses) were priced at €800,000. Those interested in purchasing a historic country house with a large plot in Es Mercadal or Fornells, which are among the most expensive residential areas on the island, should expect prices to exceed €3 million.

Ciutadella, the original capital city in Menorca, has gained popularity in recent years and now represents approximately 36% of the island's real estate market. Currently, centrally located townhouses in Ciutadella range from €300,000 to €700,000, while apartment prices start at €200,000, and villas in premium locations like Son Xoriguer and Cala Morell, which are near Ciutadella begin at €800,000.

Real Estate Market Development in Menorca · Forecast for Future trends

Real estate agent Engel & Völkers Menorca predicts that the demand for properties as well as purchase prices will remain stable, and that the improved accessibility to the island from 70 national and international destinations beyond the summer season will contribute to further development of the local real estate market. Due to the island's qualities such as its protected landscape and relaxed atmosphere, Menorca will remain a sought-after residential destination in the future.

As the supply of properties in premium locations is very limited and prices are correspondingly high, many potential buyers are likely to search for a house or finca in the interior of the island in the future. Another forecast arising from our current market report is that the moratorium imposed by the Menorcan government on issuing new vacation rental licenses will lead to a value increase of 15-20% for properties that already have a tourist license.

Menorca is a Mediterranean paradise with numerous leisure opportunities, excellent gastronomy, and a popular holiday destination for tourists and property seekers from Spain and around the world. If you are looking to purchase a house, villa, finca, or apartment in the Balearic Islands, Menorca is an excellent option.