Our Expert Talk "Attractive second home markets in difficult times. Is it worthwhile to buy in times of Covid-19?" takes a closer look at the current real estate situation on Mallorca and the Balearic Islands.
Engel & Völkers Mallorca Southwest Managing Director Hans Lenz gives an overview of the market and developments on the Balearic Islands and agent Caroline Debatty presents a selection of the most beautiful properties on Mallorca.
While Mallorca has always been a massive tourist destination, the current travel restrictions have changed the status quo. Today, many people are considering spending more time on the Balearic Islands, and even choosing them as their primary residence.
"The economic model that has been growing over the past 40 years, does of course not change overnight", says Hans Lenz, Managing Director at Engel & Völkers Mallorca Southwest. "However, the difference in demand from the clientele manifests itself in the fact that many clients are now looking for more open spaces, a more natural surrounding, and restored old buildings that offer a better connection to the countryside."
Only looking at the transaction volume from the past 10 years, the market has changed considerably on Mallorca alone. "The real estate transaction volume has increased from 2 billion euros to 4 billion in 2019", Hans Lenz explains.
"The local market is highly dependent on tourism. Of course, the consumer confidence is going to be at an all-time low, and many people working in the tourism industry are struggling right now or have even lost their jobs”, the Managing Director continues. “There have been less transactions in total, but those have been properties in the upper segment. We are confident that the average purchase price is most likely to go up, together with the percentage of foreign buyers on the island.” The activities on the Balearics have been built around quality, leisure and a top-end offer, all criteria that have become increasingly important in these challenging times.