Spain Info May: Market Report Mallorca
After I reported on the property market on the Costa Blanca in my March newsletter (if you missed it, I'll be happy to send it to you!), today it's Mallorca's turn, one of the favourite Balearic Islands. The data (and large parts of the text) for this article were kindly provided by the property magazine BELLEVUE.
(Picture from Thomas H. on Pixabay)
After two stormy post-Corona record years in 2021 and 2022, Mallorca's holiday property market has calmed down again somewhat. The time of annual double-digit price increases seems to be over for the time being so it’s good news for prospective real estate buyers.
The "Center for Real Estate Studies", commissioned by the real estate agency "Porta Mallorquina", has examined the current supply and summarised some key points (based on 5,500 offers of holiday homes on the island). According to the study, the total supply has decreased by 13 percent compared to the previous year but the prices, on the other hand, increased (island-wide) by 10.9 percent over the course of the past year.
The average price per square metre is now 5,700 euros. In the more selective southwest of the island, the average price was even over 7,300 euros per square metre and for properties with a sea view even 9,350 euros. Prices for newly built properties have risen by an impressive 26.5 percent!
According to the Spanish Land Registry Association, the average price of a flat on the Balearic Islands is currently almost twice as high as in the rest of Spain.
The strongest group among property buyers from abroad are still the Germans with around 44 percent, followed by the British (10 percent), French (5 percent), Italians and Swedes (4 percent each).
The population of the Balearic Islands has risen from 700,000 to 1.2 million since 1990, and is expected to reach 1.5 million in ten years.
Anyone interested in Mallorca real estate should familiarise themselves with the peculiarities of the market. For example, with the rapid turnover rate, when a house or flat is sold, it usually takes decades before they come on the market again. On Mallorca, on the other hand, it is not unusual for the property to be offered again after only three, four or five years. In most cases, this pays off in the end, despite incidental purchase costs of around 12 percent, renovation work and furnishing costs, because the value of the property increases extremely quickly.
A QUESTION OF LOCATION: Of course, the most important thing on Mallorca is the choice of location. Always bear in mind: from spring to the beginning of autumn, the whole island is busy, however, from the end of October to Easter, many hotels and restaurants are closed. Even in some holiday home settlements it can get quite lonely then.
The most popular regions are places like Bendinat, Illetes, Portals Nous, Santa Ponça or Port d'Andratx in the southwest, as well as the southeast around Santanyi and the northeast near Artà. But charming places like Soller, Valldemossa or Deià on the west coast, as well as Pollença in the north, also have a following. Palma attracts visitors with its old town districts, the marinas and the trendy districts of Portixol and Santa Catalina.
(Picture from Nicola Pankalla on Pixabay)
The ideas of the ideal holiday home continue to diverge on Mallorca:
Traditionalists loved the finca style with veranda, stone walls, tiled roofs and coloured shutters. Modernists, on the other hand, want white cubes with large windows and modern technology. Today, the best of both worlds applies to many properties. This has resulted in a new, charming architecture that combines the original with the contemporary. Lively materials such as natural stone and wood are combined with high ceilings and large-format windows, and the kitchen, living area and terrace merge into one large space.
Even if Mallorca real estate is expensive (perhaps overpriced): So far, an investment here has still been worthwhile. The island is undoubtedly one of the top destinations in Europe because it offers a unique combination of accessibility, infrastructure, safety, beauty, climate and leisure activities.
By now, word has even spread to the USA. Last summer, there were direct flights from New York to Palma, which brought around 10,000 US citizens to Mallorca. This year, the number is expected to increase significantly. And in the fashionable Portals Nous, the branch of a posh Beverly Hills broker opened at the beginning of the year….
(Source BELLEVUE, May/June 2023 issue - Europe's largest real estate magazine)
Of course, you can also find many interesting Mallorca properties on our website!
And if you have any questions about buying a property in Spain or would simply like some information without any obligation, feel free to call us at our office or call our agent Dennis (mobile and WhatsApp number 0034 67986 86 99) or Danielle (mobile and WhatsApp number +34 638 042 686).
With best regards
Jan Hannemann and the Su Casita team
