Prices remain stable in the southwest and in Son Vida
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.
Short time to market for apartments in the island’s capital
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.
High average prices in all regions
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.
Outlook: Demand set to remain high with private buyers and investors alike
“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.