The Balearic Islands remain a safe haven for property investments. Once again in 2019, the volume of real estate transactions on the market overall has seen positive growth, levelling out at a high of 4 billion euros. The ratio of foreign buyers is approximately 40 percent, constituting a transaction volume of 1.6 billion euros. Majorca in particular is a magnet for many international buyers and investors. “The island is known for its superb quality of life, stable prices and strong economy. We are gradually seeing the availability of homes on the market come back in line with the level of demand,” says Florian Hofer, Managing Director of Engel & Völkers on the Balearic Islands. With annual revenues of 470 million euros, the real estate company has strengthened its market leader position on Majorca still further. Engel & Völkers has been operating successfully on the island for 30 years and now has a 30 percent share of all real estate business with international clients. German citizens currently form the largest buyer group (60 percent), followed by clients from Spain (12 percent), the UK (10 percent), Switzerland (5 percent), and Scandinavia (4 percent).
Premium locations in the southwest rank among the most expensive addresses on the island: Port d’Andratx, Santa Ponsa, Bendinat and Portals. Asking prices for villas in the exclusive harbour of Port d’Andratx reached an average of 4.3 million euros in 2019. Properties in prominent hillside locations and superior new builds with sea views are highly desirable. There is an emerging trend towards a modern reinterpretation of Mediterranean architecture, with expansive outdoor living areas, terraces and beautiful gardens. In the upmarket district of Son Vida, interest is focused on newly built residences in an avant-garde design and in direct proximity to the golf course. The average asking price for such properties was 4.7 million euros last year.
Palma de Mallorca has become one of the most attractive cities in the entire Mediterranean region, with a real estate transaction volume of some 1 billion euros in 2019. Prime locations include the Génova neighbourhood and the Old Town, where the average asking price for apartments is 800,000 euros. Prospective buyers are particularly drawn to properties that are either newly built or refurbished. There is a strong interest in residences that offer sustainable and eco-friendly solutions without compromising on quality finishes and contemporary design. The high level of demand means apartments in Palma are usually sold within three to six months.
Buyers drawn by the charms of rural Majorca tend to gravitate towards properties in the traditional coastal towns and historic villages in the west of the island. Villas and finca estates in the region between George Sand, Deià and Port de Sóller commanded average prices of 3.5 million euros in 2019.
Properties in very good locations in the north come in a comparatively moderate price bracket. In Pollensa and Alcúdia, villa prices average between 1.5 and 2.5 million euros. In prime locations around Colònia St. Pere and Artá in the northeast, villas with average asking prices of 1.7 million euros offer potential for future appreciation in value. There is an increased interest from French clients in this part of the island.
The region around Cala Blava and Son Veri Nou in the south of Majorca registered average prices of 1.85 million euros with a clear upward trend, making it very interesting for prospective buyers. In the southeast, the areas around Santanyí, Alqueria Blanca and Porto Petro are especially popular. Villas here have an average asking price of 1.65 million euros. The most expensive locations for properties at the centre of the island are Santa Maria and Alaró, where villas are offered on the market for an average of 1.8 million euros.
“The upward price trend over recent years reflects a general development in the longer term. Owners on Majorca can continue to rest assured that the price of their property will retain its value,” says Florian Hofer. In addition, the growing focus on quality tourism is leading to ongoing investments aimed at improving the infrastructure on the island. Palma in particular is currently undergoing regeneration. Hundreds of millions of euros are currently being invested in the expansion of the Club de Mar luxury marina, as well as in the regeneration of the city’s port promenade and the Playa de Palma area. Alongside numerous outstanding projects in the historic Old Town, several premium residential complexes are currently being built in the family-friendly Bonanova district. The region surrounding Palma and the average locations on the Balearic island are also set to grow in popularity and see rising prices in the future.
In addition, the Parliament of the Balearic Islands has announced increased regulation of the property sector for 2020. Engel & Völkers is a strong advocate for professionalisation of local business and has played an important role in establishing the new association of real estate agents known as the “Asociación Balear Inmobiliaria Nacional e Internacional (ABINI)”. Its aim is to assist the authorities with its well-founded know-how in an advisory capacity, in order to ensure a healthy and stable development of the Majorcan real estate market in the long term.
Real Estate for Sale and To Let with Engel & Völkers
Engel & Völkers Sara Grech is the luxury real estate agent that specialises in exclusive properties for sale and to let in Malta. With more than 30 years’ experience, we are one of Malta’s most successful real estate agencies
Located in the heart of the Mediterranean Sea, Malta is a thriving cultural hub that has long been a popular destination amongst expatriates and tourists alike. Partnered with the real estate agency Engel & Völkers, finding a property for sale or rent in Malta is a breeze, and in no time at all, you'll have a spacious apartment with a view or a villa with numerous bedrooms to call your own.
Living and working in Malta
Home to more than 450,000 inhabitants, Malta is the smallest country to join the European Union in 2004. In 2008, it became part of the Eurozone. Though Malta is well-known as a popular tourist destination with plenty of recreational areas and historical monuments including nine UNESCO world heritage sites, it is not known for its luxury properties and real estate for sale and rent! Besides having first-class accommodation, Malta is home to numerous companies and industries ranging from banking and financing to construction, retail, and i-gaming. Working in Malta requires the proper permits, and those seeking employment are encouraged to find a suitable job before moving into their purchased or rented property.
A new residency scheme was launched in June 2013 which allows people to buy a high-value property and pay taxes in Malta to benefit from the residence permit. Under the new Global Residence Programme, the value of immovable property bought in Malta by foreigners has a minimum threshold of €275,000. However, when the property is in the South of Malta or on the sister island of Gozo, the minimum value is reduced to €220,000. This new scheme also allows persons eligible if they wished to rent a property and this has been lowered to €9,600 in Malta and €8750 in Gozo or the South of Malta. The minimum tax to be paid under this scheme is a minimum of €15,000 on income derived in Malta, further income arising in Malta shall be taxed at a flat rate of 35%.
Real estate and property for sale and rent in Malta
Malta has several Special Designated Areas that offer a wide variety of properties to buy or rent! Whether you are looking for a new luxury apartment with views of the Portomaso marina or an expansive villa situated in Santa Maria Estate, our team will help you find a property for rent or sale that suits your needs. From apartments with a view to villas with several, we have it all.
After you've purchased property
For such a small island, Malta is packed with amazing things to see and do. From visiting historic sites to relaxing on beautiful beaches. Visitors can take their pick of activities which will suit any mood or taste.
A selection below are the top destinations that any person should see when coming to Malta. These include Valletta; Mdina; Paceville; Blue Lagoon (Comino Island) and Gozo
Valletta recently voted the European Capital for Culture for 2018 is also a UNESCO World Heritage Site. Valletta is the hub of tourism in Malta and for good reason. It is full of historical significance, with the likes of St John’s Cathedral, forts, and museums and much more squeezed into a tiny area. As far as beautiful towns go with plenty to see, Valletta is up there with the best.
Mdina is known as the jewel in the crown of Malta and it is a fair assessment. The walled city is full of tiny alleys which you can wind your way through, stumbling across beautiful churches and museums along the way. Now effectively part of the town of Rabat, this definitely shouldn’t be left off your Maltese itinerary.
Malta has a reputation for being a destination for the older generation, but Paceville puts lie to that. This is where the youngsters come to drink and party and you can rely on having a good evening out here. It’s not just loud music for teenagers either; there are plenty of civilized bars and restaurants if you don’t want to rave into the early hours.
A beautiful area of clear blue water which is fantastic for swimming and is the perfect place for a day out at the beach. Arguably the best place for swimming in the whole Mediterranean, the Blue Lagoon is located on the island of Comino.
Just a 30-minute ferry trip away from Malta, Gozo is a beautiful, rural island which gives you a glimpse into what Malta looked like a few decades ago. Sleepy villages, rugged coastline, and beautiful countryside all make this a fantastic place to visit. But one of the main draws is the diving off the coast. Malta has been named as one of the best places to scuba dive in the world, and Gozo is one of the best spots to do it.
No matter where your interests lie, Malta has you covered; with Engel & Völkers Sara Grech by your side, your home in this beautiful part of the world is also covered. Contact us today to find out more about our villas, apartments and other properties for sale and rent!
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