Property Market Mallorca 2015

A resilient market, breaking through the ashes; A Phoenix is rising!


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Mallorca property market – an analysis

·      Average price of property in Mallorca now €446,000

·      Foreign buyers from Germany, Switzerland and UK bolstering the property market

·      Interest in luxury real estate, apartments on the rise

Having weathered the storm that was the collapse of the Spanish property market, Mallorca is enjoying a strong year in terms of both price growth and volume of transactions.

Boasting over 300 days of sunshine a year, world-class golf, white sand beaches and luxurious properties, Mallorca has long been a popular choice with investors and second homebuyers alike. Recent research has revealed that as many as one in five buyers of Spanish property hail from the UK, and that on Mallorca in particular, there has been a rising interest in luxury property.

Strong pound, Golden Visa supporting sales

According to one local estate agent, property prices in Mallorca have risen by 27pc over the first half of the year.

The volume of sales is also increasing; figures from the property registry reveal sales have been rising steadily from 2009, and are up 27pc in the first six months of 2015 compared with the same period the year prior.

The average property in Mallorca now costs €446,000 (£325,195), nearly double that of property in mainland Spain which now costs on average €224,000. The strength of the pound coupled with relaxed visa restrictions for foreign buyers is thought to have helped support real estate activity, with a “Golden Visa” available to buyers who invest in a property worth at least €500,000. The Pound has also made a substantial recovery in wake of the economic crisis, and as it’s currently enjoying the highest rate against the Euro in seven years, buyers are taking full advantage.

Sotheby’s recorded that in 2013, over 30pc of Balearic house sales were attributed to foreign buyers, and 14.34pc of those sales were to buyers with properties over the half a million Euro mark. With a variety of properties available, buyers and investors are choosing from farmland fincas, apartments or luxurious villas in one of the most beautiful gems in the Mediterranean.

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Foreign buyers keeping market buoyant

While Mallorca it self has seen an influx of German and Swedish buyers, British holiday home buyers and ex-pats are one of the strongest buyer demographics in 2015.

There has been a palpable shift in interest from villas to apartments, as buyers look to settle into centrally located condominiums that require less maintenance. According to General Council of Notaries, 80pc of properties exchanged last year were either flats or apartments. Among the most popular buyer destinations is the capital of Palma de Mallorca, where there are a number of properties near to historic landmarks, sophisticated nightlife, and world-class shopping. The average cost of property is €428,000, but buyers can expect to pay in advance of €1,350,000 for apartments that provide stunning views over the Cathedral or the port.

Another popular destination is Puerto Andraxt, a former fishing village that has been revitalised to become one of the most luxurious and sought-after destinations in the Balearics. Puerto Andraxt is home to much of the island’s luxury real estate, and one local agency revealed that 70pc of transactions that took place last year did so here.

Also proving popular are sprawling country fincas in central rural Mallorca; investors can find excellent properties for use as holiday homes, from which visitors can explore nearby quaint towns, bicycle routes and vineyards, while retirees can escape the hustle of more touristy areas like Magaluf. Sales across central and southern Mallorca are up by 120pc year-over-year, and prices of top pieces of luxury real estate are projected to rise by 10pc over the next twelve months.

From the rural Serra de Tramuntana mountains to the white sand beaches of Alcudia, the four corners of Mallorca are proving incredibly popular with foreign buyers, and this trend doesn’t look to be changing any time in the near future.

Sotheby’s recorded that in 2013, over 30pc of Balearic house sales were attributed to foreign buyers, and 14.34pc of those sales were to buyers with properties over the half a million Euro mark. With a variety of properties available, buyers and investors are choosing from farmland fincas, apartments or luxurious villas in one of the most beautiful gems in the Mediterranean.

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