Mallorca, Ibiza and Menorca, as second residence destinations, are the most desired areas of the Mediterranean. The limited supply and high demand result in an desirable opportunity for investors and potential buyers. Mallorca is synonymous with quality and luxury tourism and that makes the island particularly valued by European buyers. The Port of Andratx is one of the most expensive places on the island, with the average cost for a villa coming in at an impressive 4.5 million euros, followed by areas of the North such as Pollença, the Casco Antiguo de Palma, Portixol and Son Vida. This type of property offers great opportunities for reselling, something that foreign investors do not overlook. Germans and the English are still the most interested demographic in buying homes in the Balearic Islands.
Since 2015, home prices have maintained an upward trajectory, with an increase of 34% in four years. The average price per square meter in Mallorca for holiday properties stands at 5,429 euros, 8% more than in 2018, although it has significant variations depending on the area in which the home is located. One out of every three properties in the market is luxury. Specifically, the current market is divided into four categories: 14% of the market offer is luxury quality, 31% is high quality, 41% is medium quality and 14% is basic. By zones, the southwest (32%) and the surrounding areas of Palma (26%) are those that have the most high-end offer. A new property is a third more expensive than a second-hand one. In the southwest, the most popular area, new housing is only 7% more expensive, but in the northwest, around Palma, the center of the island, Palma and the northeast the spreads are more important.
In line with the above and in what refers to the rental sector, the price to rent a house in the Balearic Islands in May increased by an average of 2.8%, which places the Balearic community as the fourth most expensive to rent a house, according to the data recently by a well-known real estate portal. The average price of rental housing on the islands stood at 10.27 euros per square meter in May, while its peak occurred in February 2019 with an average price of 10.60 euros per square meter. In Palma, the price to rent a flat in May increased by 2.3% with a price of 11.18 euros per square meter, a cost that rose by 5% compared to May 2018, according to the real estate portal report.
Whether you are interested in buying, selling or renting in the Balearic Islands and would like legal advice, do not hesitate to contact us. We will be happy to advise you and assist you with the right contact person!
Source: Mallorca Solicitors