1
9 lo
rc
S
s n t o ti rke ca o Ma L s te s er a nd l k st re ö V al E T & & e R ics el g ‘s t n a tis ta
al
E
M
Market Report Mallorca 2021/22
EDITORIAL
Dear Reader Mallorca is not only characterised by its stunning landscapes—it is also attributed with a highly attractive real estate market underpinned by its outstanding infrastructure. Starting with accessibility: there is no other summer destination which can be reached from almost all cities in Europe like Palma Airport. Engel & Völkers has been active in Mallorca’s capital for more than 30 years and has therefore witnessed Palma’s transformation into a thriving capital thanks to the many international influences. Engel & Völkers looks back on its most successful financial year ever in the Balearics. In 2021 a total value of 1 billion euros of properties were sold by us to new owners. This represented more than 500 property transactions that fulfilled the wishes of our buyers and vendors and for our team, it meant an average of two notary appointments per day. We have observed growing numbers of families making Mallorca their main place of residence. Besides the climate, recreational value, and diverse cultural opportunities, they have access to 17 international schools, and enjoy a high level of safety. All of these factors mean that the attention of international buyers has been increasingly drawn to Mallorca since the beginning of the pandemic: the island is increasingly becoming the No. 1 destination for a second home in Europe. For many years, we have been producing Engel & Völkers’ market report in Mallorca, focusing on the current developments surrounding the real estate market in the Balearics and Mallorca. In this report, you can read about the market trends on the island based on an array of well-researched facts, analyses, and assessments carried out by Engel & Völkers’ real estate agents. The real estate sector makes a huge contribution to the development of the Balearics, especially during times of uncertainty. For example, the sector accounted for around 25% of the Balearic Islands’ gross domestic product in 2020 (2019: 20%). Due to low interest rates and, at the same time, rising inflation, it has become important for many people to invest their money securely on a long-term basis. Real estate investments are therefore currently seen as stable investments across the globe. Properties in the Balearics have proven to be extremely stable investments, having experienced significant appreciation over the past decade: since 2012, the team at Engel & Völkers has processed around 3,400 transactions, with an average annual increase in value of around 9%. As a result of the short supply of properties on the market and the consistently high level of demand for high-quality real estate, we predict that prices will continue to rise in Mallorca. The island therefore remains a safe haven for property investors. Whether you are searching for a traditional finca in the tranquil centre of the island, an apartment in Palma, or a luxury villa with a sea view in Son Vida, your satisfaction is our priority. Our portfolio is spread across all types of properties. We are grateful for the trust our clients place in us and are ready to offer you our services as a reliable partner whenever you need us. We hope you enjoy reading our report!
Florian Hofer Managing Director Engel & Völkers Balearic Islands
Editorial | 1
MARKET REPORT MALLORCA 2021/22
Table of Contents
4
11
Mallorca
Balearic Islands
17
36
Residential Property Market Mallorca by Region
Rentals
New Developments 1 Editorial 3 Engel & Völkers Locations 17 Residential Property Market by Region 4 Balearic Islands Engel & Völkers Highlights
Palma de Mallorca
Market Overview
Palma Surroundings & Son Vida
Key Facts
Mallorca Southwest
Real Estate Market Development
Mallorca West
11 Mallorca
36 Rentals 38 Definitions & Sources of Figures and 39 List Tables List of Maps
40 Imprint
Mallorca North Mallorca Northeast
Market Overview
Mallorca Central
Key Facts
Mallorca Southeast
10 Reasons to Invest in Mallorca
Mallorca South
Market Report Mallorca 2021/22 Table of Contents | 2
ENGEL & VÖLKERS LOCATIONS
19 Property Shops on Mallorca
Mallorca West
Mallorca Central
Mallorca North
Deià
Santa Maria
Pollensa
Calle Archiduque Luis Salvador, 1 E-07179 Deià Tel.: +34-971-63 63 63 Deia@engelvoelkers.com
Calle Marqués de la Fontsanta, 45 A E-07320 Santa Maria Tel.: +34-971-62 16 29 SantaMaria@engelvoelkers.com
Via Pollentia, 20 E-07460 Pollensa Tel.: +34-971-53 20 50 Pollensa@engelvoelkers.com
Sóller
Inca
Puerto de Pollensa
Carrer de Bauçà, 4 E-07100 Sóller Tel.: +34-971-63 30 63 Soller@engelvoelkers.com
Avenida General Luque, 7 E-07300 Inca Tel.: +34-971-50 77 20 Inca@engelvoelkers.com
Calle Juan XXIII, 11 E-07470 Puerto de Pollensa Tel.: +34-971-86 84 00 PuertoPollensa@engelvoelkers.com
Alaró
Puerto de Alcúdia
Calle Petit, 2 E-07340 Alaró Tel.: +34-971-50 23 63 Alaro@engelvoelkers.com
Carrer dels Pins, 23 E-07400 Puerto de Alcúdia Tel.: +34-971-89 77 00 PuertoAlcudia@engelvoelkers.com
Palma Surroundings & Son Vida Son Vida Cami de Son Vida, 38 E-07013 Palma - Golf Son Quint Tel.: +34-971-60 91 41 PalmaSurroundings@engelvoelkers.com
Mallorca Northeast Artà Calle Antoni Blanes, 18 E-07570 Artà Tel.: +34-971-82 93 39 Arta@engelvoelkers.com
Mallorca Southwest Port Andratx
Mallorca South
Calle Isaac Peral, 50 E-07157 Port Andratx Tel.: +34-971-67 47 80 Andratx@engelvoelkers.com
Santa Ponsa Avenida Rey Jaime I, 111 E-07180 Santa Ponsa Tel.: +34-971-69 90 63 SantaPonsa@engelvoelkers.com
Llucmajor
Palma de Mallorca Palma Zentrum
Ronda Mitjorn, 147 A E-07620 Llucmajor Tel.: +34-871-57 00 00 Llucmajor@engelvoelkers.com
Calle Constitución, 7 E-07001 Palma de Mallorca Tel.: +34-971-21 41 40 PalmaCentre@engelvoelkers.com
Mallorca Southeast
Calle Benito Jerónimo Feijóo, 10 E-07181 Portals Tel.: +34-971-67 68 36 Portals@engelvoelkers.com
Palma Südwest
Santanyí
Avenida Ingeniero Gabriel Roca, 6 E-07014 Palma de Mallorca Tel: +34-971-22 23 23 PalmaSouthwest@engelvoelkers.com
Plaza Mayor, 18 E-07650 Santanyí Tel.: +34-971-64 21 01 Santanyi@engelvoelkers.com
Mallorca Commercial
Palma Beach
Santanyí
Calle Marbella, 71 E-07610 Palma de Mallorca Tel.: +34-971-41 29 25 PalmaBeach@engelvoelkers.com
Carrer del Bisbe, 2 E-07650 Santanyí Tel.: +34-971-64 21 01 Santanyi@engelvoelkers.com
Portals
The Circle Pol. Industrial Son Bugadelles Carrer Illes Canàries 18 - 07183 Santa Ponsa Tel.: +34-871-62 00 83 MallorcaCommercial@engelvoelkers.com
Engel & Völkers Locations 19 Property Shops on Mallorca | 3
BALEARIC ISLANDS
Engel & Völkers Highlights
Nº1 Engel & Völkers is the market leader for properties in Mallorca based on our annual turnover, market share, the number of real estate shops, employees and real estate advisors, as well as the number of properties on the market.
23
568 With a total of 568 real estate transactions in 2021, Engel & Völkers achieved a new record in the Balearics (compared to the previous year: +95%). The unprecedented demand for properties in the Balearics has led to a market in which properties are selling faster than ever before. This is clear proof that investors regard the islands Mallorca, Ibiza, and Menorca as first-class property locations.
There are 23 Engel & Völkers real estate shops in the Balearics: 19 in Mallorca, 2 in Ibiza, and 2 in Menorca. We place our confidence in the Balearic Islands’ property market. This is reflected in our latest investments, such as the opening of a real estate shop in Alaró, and the first Engel & Völkers business office in Mallorca, which is located in the innovative office and service centre “The Circle” in the Mallorca Design District in Santa Ponsa.
9% A property in the Balearics is a crisis-proof and a profitable investment. This is demonstrated by the fact that the properties sold by Engel & Völkers in the Balearics since 2012 have increased in value by approximately 9% annually. The islands have proven their status as a safe haven for investors.
Balearic Islands Engel & Völkers Highlights | 4
€1B In 2021, Engel & Völkers’ transaction volume reached almost a billion euros in the Balearics, achieving figures higher than ever before (compared to the prior year: +113%). The Balearic Islands’ entire market was able to significantly exceed the figures of the previous years to achieve new records of around 6.6 billion euros (compared to the prior year: +81%). Engel & Völkers surpassed the performance of the entire market.
2,500 Engel & Völkers markets properties in Mallorca, Ibiza, and Menorca, and more than 2,500 properties in various price categories are currently on the market. These include villas, fincas, town houses, and apartments. Properties with views of the sea or those located in the first sea line are particularly sought-after. There are also attractive options in the countryside and in the mountains.
30 Years Engel & Völkers opened its first overseas office in Palma de Mallorca in 1990. Today, with more than 30 years of market knowledge we are the leading contact partner for premium properties. Engel & Völkers is currently present in more than 30 countries across 5 continents. More than 15,000 people work under the brand name Engel & Völkers.
200 The Engel & Völkers team on the Balearics has grown significantly over the past few years as a result of its successful turnover. After starting
64% The strong demand for high-quality properties is reflected in the total number of Internet enquiries Engel & Völkers received in 2021. Compared to the previous year, 64% more property enquiries were registered on Engel & Völkers Mallorca’s website (in comparison to the pre-pandemicyear of 2019, there were 123% more enquiries).
with a small team in Palma de Mallorca, more than 200 employees and real estate advisors now work at the various locations around the islands. The experienced teams work in numerous languages in order to communicate effectively with their international clients.
Balearic Islands Engel & Völkers Highlights | 5
BALEARIC ISLANDS
Market Overview The property market in the Balearics surpassed all the expectations in 2021: according to information from the Spanish Ministry of Transport, Mobility and Urban Agenda (MITMA), the transaction volume in the region's entire market was around 6.6 billion euros. This demonstrates growth of 81% in comparison to the previous year (2020: 3.6 billion euros) and a new record figure in over a decade. This shows that properties in the Balearics are seen as stable and secure investments even during the pandemic, both amongst Spanish buyers as well as international buyers. The number of transactions was lower than in 2017, the year with the second highest transaction volume, which in turn demonstrated an increase in the
average selling prices on the islands. A total of 40% of the transactions were generated by international buyers.
6.6
Billion Euros is the transaction volume in the total market of the Balearic Islands
Both the number of transactions stemming from international buyers and the number of transactions in the Balearic Islands’ entire market indicate similar developments to the previous years.
Transaction Volume Total Market Balearic Islands
26,000 24,000
>6B
22,000
5B
Number of Transactions
18,000
4B
16,000 14,000
3B
12,000 10,000
2B
8,000 6,000
Transaction Volume in Euro
20,000
1B
4,000 2,000 0
2010
Transaction Volume
2011
2012
2013
2014
2015
Number of Transactions Total Market
Figure 1: Real Estate Transaction Volume – Total Market Balearic Islands, MITMA
International property buyers make a strong contribution to the overall economic development of this group of islands: the capital, Palma de Mallorca, has transformed into a fascinating cosmopolitan city thanks to the increasing international influences of the past few years, and is one of Europe’s prime locations in terms of quality tourism. With its exclusive restaurants, diverse shopping opportunities, and numerous sports facilities, Palma fulfills the requirements of international buyers. In 2021, the Balearics was Spain's most visited region receiving approximately 6.3 million international visitors. Tourism is one of the most important sources of income for this group of islands: where visitors spent more than 7
2016
2017
2018
2019
2020
2021
0
Number of Transactions of International Buyers
billion euros last year. Furthermore, international visitors accounted for an approximate average spend of 1,100 euros per stay and this figure reflects the increasing spend in comparison to previous years. This can be attributed to longer stays, mainly those of international property owners. According to forecasts made by the Spanish Aviation Authority, between April and October 2022, more passengers are expected to arrive in Mallorca by air than ever before. In 2021, the Balearic Islands Government’s overall tax revenues were around 1.2 billion euros, which is a significant increase in comparison to the pandemic year of 2020. The real estate sector contributed a total of approximately 688 million euros, more than half of the
Balearic Islands Market Overview | 6
overall tax revenues produced that year. One look at the number of inhabitants in the Balearic Islands is enough to demonstrate its appeal: according to the Institute for Statistics in the Balearics (IBESTAT), only about half of the approximately 1.1 million inhabitants were born on the islands, while just under 19% were born outside of Spain. These figures confirm the region's international status.
Cemex, the Spanish Institute for Energy-saving and Diversification (IDAE), and the Balearic Government. This means that green hydrogen will be generated by two photovoltaic systems and the energy will be used, amongst other things, to produce heat and energy for public buildings and provide electricity in the port of Palma. The hydrogen plant commenced operations at the beginning of 2022 and makes an important contribution to Mallorca’s sustainable energy transition.
In 2022, the Government is scheduled to make investments in the Balearic Islands amounting to 680 million euros. Of these investments, 172 million euros are to be invested in infrastructure projects, 268 million euros in aid and subsidies for air and sea transport, and 4.5 million euros in the construction of rental apartments. Moreover, a budgetary package was adopted for the first time which considers the “island factor”: 183 million euros are dedicated to specific investments on the islands in order to compensate for the challenges of insularity and 50 million euros are to be spent on the development of a tourism resilience strategy.
In addition, the islands are set to receive subsidies from the European Union’s Next Generation Fund to the total of 47.7 million euros for the modernisation, transformation, and promotion of sustainability in the tourism industry. The Balearic Government has planned several projects dedicated to changing existing tourism models in areas such as Playa de Palma and Magaluf in Mallorca, and Sant Antoni in Ibiza. In Menorca, more emphasis will be placed on the adaptation of tourist complexes to sustainability criteria, along with the transformation of the port of Mahón into one of the Mediterranean’s green ports. Sustainability measures are also being taken in Formentera: as on the other islands, subsidies are being granted for digitalisation and recycling measures in the hotel sector. On the island of Mallorca, the plan for sustainability in tourism includes investments amounting to 30 million euros, which represents around 63% of the total sum to be invested. With the help of EU funds, the Balearic Islands will become a role model for recycling and sustainable tourism.
To ensure a high quality of life in future, great focus is placed on investing in sustainability, both in public and private areas. The Balearic Government reactivated the project surrounding the construction of a hydrogen plant where a cement plant was once located in Lloseta. The project, with a budget of 50 million euros and which goes by the name “Power to Green Hydrogen Mallorca”, was initiated by ACCIONA and Enagás, as well as Redexis,
Historical Development of Real Estate Prices Balearic Islands vs. Euribor
6%
160% 140%
5%
120%
4%
100%
3%
80%
2%
60%
1%
40%
21 20
20 20
19 20
18 20
20
17
16 20
20
15
14 20
13 20
12 20
20
20
20
20
Average Price Index
11
0%
10
-1%
09
20%
08
0%
Euribor
Figure 2: Historical Development of Real Estate Prices on the Balearic Islands vs. Euribor, MITMA / Euribor
With an index value of 160%, the real estate price level is significantly higher than in 2008 and reached a new record level in 2021. At the same time, the reference interest rate for mortgages (Euribor) has
seen strong decline in a low-interest environment, even down to negative rates of interest, over the past few years. In this economic environment, investing in properties is profitable, particularly with financing.
Balearic Islands Market Overview | 7
BALEARIC ISLANDS
Key Facts
Mallorca North Pollensa · Puerto de Pollensa · Puerto de Alcúdia
Coastline, beaches, and mountains Modern villas and apartments, spacious fincas 2 - 3 million €
Palma de Mallorca Old Town · Playa de Palma · Paseo Marítimo
International hotspot in the Mediterranean Modern penthouses and apartments 1 million € The cosmopolitan city of Palma de Mallorca is the capital of the Balearics and has been a popular travel destination for decades. Due to its rich cultural heritage, the historic centre’s winding streets, the stunning promenades at the Paseo Marítimo and the Can Pere Antoni city beach, creative shops, and an array of dining options, this Mediterranean city appeals to international property buyers.
The real estate market in the north of the island boasts both modern properties in a minimalist design and rustic fincas located amidst the Tramuntana Mountains. This region is characterised by its impressive landscapes, tranquil inland areas, and proximity to the sea. Thanks to the excellent infrastructure, the capital, Palma, can be easily reached on the motorway.
Mallorca Southeast Santanyí · Portocolom · Cala LLombards
Magnificent bays and lively towns Modern, newly built fincas and townhouses 1.8 million €
Mallorca Northeast Artà · Colònia de St. Pere · Canyamel
Exceptional landscapes and tranquillity
Harbour towns, like Portopetro, Cala d’Or, Portocolom, and Colonia San Jordi, are characterised by a Mediterranean attitude to life and offer both modern town houses and highquality fincas. The centre of Santanyí is home to one of the island’s most beautiful weekly markets, which invites its guests to enjoy life to the full with its outstanding culinary offer.
Modern villas by the sea and rustic fincas 1.9 million € The northeast of Mallorca stands out with its untouched landscapes and immediate proximity to the sea. This part of the island is the right choice for those seeking a quiet and calm lifestyle—for hiking in the countryside the whole year through or getting around by bike. The coastal towns of Colònia de St. Pere and Porto Cristo are wellknown for their appealing restaurants along the promenade.
Palma Surroundings & Son Vida Son Vida · Esporles · Puigpunyent
-
Exclusive location for golf enthusiasts & families Designer villas with avant-garde architecture 5 million €
Advantages of the region
Primary property type
Average price
The neighbourhood of Son Vida is one of the most popular and exclusive residential areas in Mallorca. International clients appreciate the proximity to the capital, Palma, the excellent infrastructure, and magnificent views of the sea and the mountains. The neighbouring villages impress with their Mallorcan charm and offer authentic rural lifestyle.
Balearic Islands Key Facts | 8
Mallorca West Mallorca Central
Sóller · Valldemossa · Deià
Santa Maria · Alaró · Selva · Bunyola
Authenticity, culture, and spectacular landscapes Traditional villages amidst stunning landscapes Fincas with stone façades and spacious outdoor areas 3 million € In the centre of Mallorca, traditional villages are located amidst impressive landscapes of almond and olive groves. Potential property buyers appreciate the proximity to the capital, Palma, and the high degree of privacy offered by the large plots of land. The weekly markets in places like Alaró, Binissalem, Inca, and Santa Maria offer regional produce of the highest quality.
Properties with views of the sea or the Tramuntana 3.5 million € With its unique mountain backdrop and sea views, the west coast of Mallorca has a special kind of charm, which has also international appeal. Excellent transport connections to the capital, Palma, and the airport also contribute to this region’s charm.
Mallorca South Llucmajor · Cala Blava · Son Verí Nou
Mallorca Southwest Port Andratx · Santa Ponsa · Portals
Unobstructed view over the Bay of Palma Villas right by the sea with modern architecture
Ideal infrastructure year round Modern villas and apartments with sea views 4.5 million € For many years, the southwest has been one of Mallorca’s most popular regions. The outstanding infrastructure and good connections to the capital, Palma, ensure that this part of the island provides a high quality of living the whole year through. International schools and a wide range of sports facilities and leisure activities are within easy reach.
2.5 million € The popular coastal towns of Son Verí Nou, Cala Blava, Puig d’en Ros, and Cala Pi offer modern villas with sea views as well as fast transport connections to the capital, Palma, and the international airport. In the region of Llucmajor, spacious fincas in rural surroundings are very popular amongst potential buyers. The island’s most beautiful beaches are nearby and can be easily reached.
Ibiza Ibiza Town · Santa Eulalia · Santa Gertrudis
Menorca Ciutadella · Mahón · Cala Fornells
International hotspot with beautiful coastline Modern properties with sea views
Relaxed lifestyle and magnificent coastlines Villas with a pool and garden and fincas 1.5 - 2 million € Menorca is known as the island of tranquillity due to its unspoilt nature and its long, sandy beaches. The northeastern Balearic Island is characterised by a relaxed pace of life and sustainable tourism. Thanks to its wide range of culinary options, the island is nominated as the "European Region of Gastronomy in 2022". Additionally, Hauser & Wirth Menorca recently opened an arts centre in Mahón. Engel & Völkers Menorca’s clients come primarily from France, Spain, Great Britain, and Germany.
3.5 - 4 million € The diversity on the Balearic Island of Ibiza is highly attractive to potential buyers, from the innovative hotel and gastronomy concepts underlying the famous Ibiza lifestyle, to the island's stunning nature and unique coastline. Modern properties with views in peaceful surroundings are particularly sought after by those who wish to work from home. Some of the most popular regions include those surrounding Ibiza Town, the southwest with its spectacular sunsets, and the rustic centre of the island around Santa Gertrudis and San Carlos.
Source: Engel & Völkers Mallorca, Company Data
Balearic Islands Key Facts | 9
BALEARIC ISLANDS AND MALLORCA
Real Estate Market Developement
The Engel & Völkers Market Report 2021/22 provides a detailed overview of the development of the property market in the Balearics and Mallorca and reveals some of the current market trends. Figures provided by the Spanish Ministry of Transport, Mobility and Urban Agenda (MITMA), the Agency for Tourism Strategy of the Balearic Islands (AETIB), the Institute for Statistics of the Balearic Islands (IBESTAT), as well as the national airport operator AENA were used as a basis for the data analyses. To determine the
supply of real estate in the various areas of Mallorca as well as the dynamics of the real estate market, the independent market research company Casafari LLC analysed 768 real estate agencies in Mallorca over the period 1 January 2021 to 30 November 2021. Engel & Völkers used internal company data and data from the Spanish Ministry of Transport, Mobility and Urban Agenda (MITMA) for the following overview concerning the volume and number of real estate transactions in the years 2020 and 2021.
Real Estate Market Development - Balearic Islands and Mallorca 2020-2021 Total Market vs. Engel & Völkers Transaction Volume (€)
Balearics - Total Market Balearics - Engel & Völkers Mallorca - Total Market Mallorca - Engel & Völkers
Number of Transactions (units)
2020
2021
2020-2021
2020
2021
2020-2021
3,640,959,300
6,603,597,500
+81%
11,460
17,502
+53%
460,837,587
979,974,877
+113%
291
568
+95%
2,725,271,915
5,088,829,640
+87%
8,982
13,667
+52%
410,965,087
890,760,029
+117%
250
500
+100%
Tab. 1: Real Estate Market Development - Balearic Islands and Mallorca 2020-2021, MITMA / Engel & Völkers Mallorca, Company Data
In comparison to 2020, both the number and volume of transactions increased significantly in 2021 in the Balearic Islands’ entire market as well as in Mallorca. At Engel & Völkers, the volume of transactions in the Balearics and in Mallorca more than doubled. The company
was able to significantly surpass the performance of the overall market (see table), both in terms of the number and volume of transactions. The average sales price at Engel & Völkers increased in the year 2021, both in the Balearic Islands’ entire market as well as in Mallorca.
Balearic Islands and Mallorca Real Estate Market Developement | 10
MALLORCA
Market Overview Mallorca's varied coastline, kilometres of beaches, stunning bays with crystal clear waters, and the impressive rural landscapes of the Sierra Tramuntana, make the largest of the Balearic Islands also one of the most attractive property locations in the Mediterranean. Throughout the pandemic, Mallorca was regarded as a safe haven for long-term real estate investments thanks to its good accessibility, modern infrastructure, and outstanding quality of life. Those who invest in a property in Mallorca,
whether as a financial investment, holiday home, or primary residence, can rely on the stability of the Mallorcan property market. Since 2012, the properties sold by Engel & Völkers have achieved an average annual increase in value of 9%. Engel & Völkers has analysed the distribution of properties on the market in the premium segment across the island based on a sample of 33,650 properties. Most of the properties on the market are in the region of Palma de Mallorca (36%) and the southwest of Mallorca (22%).
Distribution of the Property Supply 2021 Analysis of approx. 33,650 Properties
7%
10% 2%
7%
4%
North West
Palma Surroundings & Son Vida Palma Southwest
Central
South
Northeast
Southeast
22% 36% 5%
7%
Figure 3: Property Supply 2021 in the Premium Segment – Mallorca, Casafari LLC
Mallorca Market Overview | 11
Real Estate Market Dynamics Engel & Völkers Mallorca
41%
59%
2021
New on the Market
Sold / Delisted
Figure 4: Real Estate Market Dynamics 2021 – Engel & Völkers Mallorca, Casafari LLC
In most of Mallorca’s regions in 2021, there was increased demand for properties and, at the same time, a decrease in the number of properties on the market. At Engel & Völkers Mallorca, more properties were sold or taken off the market (59%) than went onto the market (41%). In comparison, 53% of the properties were sold or taken off the market in 2020, while 47% were new on the market. This development is the result of high demand for properties in the premium segment and a shorter length of time between a property being viewed and purchased. During the pandemic, Mallorca is increasingly becoming the No. 1 destination for a second home in Europe.
funds. The tram is set to start running in 2026. Moreover, work started on the Mallorca Design District in 2021, which is located in the commercial area Son Bugadelles and supported by the Municipality of Calvià. By bringing companies from the fields of architecture, construction, real estate, and lifestyle together, the region aims to position itself as the future heart of the design and lifestyle sector in Mallorca. One look at the scheduled new hotel openings is enough to illustrate the progressive development of the island’s tourism. As in previous years, the growing number of high-quality hotels continues to attract the attention of wealthy individuals. In 2022, numerous new openings of boutique and luxury hotels are planned, such as the Kimpton Aysla Hotel (Santa Ponsa), the H10 Punta Negra (Costa d’en Blanes), the Hilton Galatzó Hotel (Costa de la Calma), the Pure Salt Puerto Sóller, and the El Vicenç de la Mar (Cala Sant Vinç). These investments demonstrate Mallorca’s transformation into one of Europe’s prime locations when it comes to quality tourism.
In order to continuously improve the destination’s appeal, the Balearic Islands Government has planned large future investments, such as a tram connection to Palma de Mallorca Airport. The proposed tram route will pass through the centre of Palma, Playa de Palma, and the Son Espases University Hospital. A large part of the proposed 500-million-euro project will be financed through European Union
Transaction Volume Engel & Völkers Mallorca
1.100 Mio. 1.000 Mio. 900 M
Data in Euro
800 M 700 M 600 M 500 M 400 M 300 M 200 M 100 M 0
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Figure 5: Real Estate Transaction Volume – Engel & Völkers Mallorca, Company Data
In 2021, the transaction volume in Mallorca’s entire market surpassed the figures from previous years. The same is true of Engel & Völkers’ transaction volume. With 170 real estate advisors and employees, the team at Engel & Völkers Mallorca recorded the most
successful financial year in the company’s history, with a transaction volume of around 891 million euros. In comparison to the previous year, the turnover more than doubled (2020: 411 million euros) and the development of the entire market was exceeded.
Mallorca Market Overview | 12
Buyer Nationality 2021
number of guests travelling by plane has more than doubled (2020: 3 million) and the island’s tourism sector has therefore recovered quite quickly. In the summer of 2022, several further direct flights will be added from cities such as Stockholm/Arlanda (Sweden), Cagliari, Verona (Italy), Poznan (Poland), Sofia (Bulgaria), Helsinki (Finland), Leeds/Bradford, Newcastle, and Glasgow (Great Britain). Direct flights will also be introduced from New York.
German (66%) British (9%) Spanish (8%)
Buyers Engel & Völkers Mallorca
Scandinavian (6%) Swiss (4%) Austrian (2%) French (1%)
+100%
Other (4%) Figure 6: Buyer Nationality 2021 – Engel & Völkers Mallorca, Company Data
Private Jet Movements at Palma Airport compared to the prior year
Germans are the principal buyers by far accounting for 66% of all potential buyers at Engel & Völkers in Mallorca. According to the Agency for Tourism Strategy of the Balearic Islands (AETIB), Germans also represented the largest group of foreign guests on the island, comprising 37% of all visitors in 2021. Further groups of buyers from Great Britain, Spain, Switzerland, Austria, France, and Scandinavian countries confirm the island’s high degree of relevance amongst international real estate buyers. Mallorca’s greatest advantages include its excellent accessibility thanks to many different airlines with direct
Over the past few years, private air transport to Mallorca has increased by an average of 5% per year. Since the beginning of the pandemic, this trend has increased rapidly, as high-net worth individuals (HNWI) opt for the additional safety of private transfers. As a result, the number of private flights has almost doubled in comparison to the prior year (2021: 16,371; 2020: 8,395), which is confirmed by figures provided by the Spanish Airport Authority (AENA). Most of the private jets landing in Palma come from Germany, England, Spain, Switzerland, Russia, and the USA. The increasing number of arrivals by private jet corresponds with Mallorca’s development into a quality-oriented travel destination with exclusive boutique hotels, restaurants, shopping opportunities, as well as sports facilities and events amidst a Mediterranean atmosphere.
connections into Palma Airport from all of Europe's main cities that make it a destination like no other. Even during the pandemic, Europe’s capitals could still be reached within a couple of hours when the airport reopened. This meant that visitors continued to travel to Mallorca in 2021 as opposed to other holiday destinations. Palma de Mallorca Airport recorded a total of around 7,5 million air passengers in 2021. In comparison to the first year of the pandemic, the
Flight Distance from Palma de Mallorca
1:30 h
2:00 h
2:00 h
2:30 h
2:30 h
Madrid
Zurich
Paris
Dusseldorf
Vienna
2:30 h
2:50 h
3:30 h
5:00 h
09:15 h
London
Berlin
Stockholm
Moscow
New York
Figure 7: Flight Distance in Hours – Palma Airport, AENA Air Traffic Statistics
Mallorca Market Overview | 13
MALLORCA
Key Facts The island at a glance
208
Beaches
910,000+ Inhabitants
300
Days of Sun per Year
Healthcare
400 KM
Hiking Trails
Health practices
Hospitals
World Cultural Heritage
Sports
60 11
1 UNESCO
23
Golf Courses
2,000 KM Cycle Paths
Infrastructure
47 2
Private Jet Airport
Marinas
60
86%
Households with fast Internet Connection
5-Star Hotels
1
International Airport
9
Michelin Star Restaurants
17
International Schools
Mallorca Key Facts | 14
MALLORCA
10 Reasons to Invest in Mallorca 1. Good accessibility
6. Sport activites
The international airport of Palma de Mallorca is one of Europe’s leading airports, with hundreds of routes to destinations across the globe. Direct flights to all major European cities ensure that journeys are kept short, therefore, those interested in buying properties can easily commute between their home and the Mediterranean island of Mallorca.
The island has strengthened its position as a leading sports destination internationally: not only for those who practise sports in their spare time, but also for professionals preparing for their athletic season with training sessions on the island. Many international sports events take place in Mallorca, such as the ATP Mallorca Tennis Championship, the Road to Mallorca, the Mallorca Challenge (Triathlon), and the UCI Track Cycling World Championships. Whether you are interested in hiking, sailing, cycling, or playing golf, the island has something to offer for everyone.
2. Perfect climate With an average of 300 days of sunshine a year, Mallorca has warm summers and mild winters, during which the temperatures rarely fall below 12 degrees. It is the perfect climate to enjoy outdoor activities and life outdoors the whole year through. The pandemic has resulted in many owners of holiday homes spending longer periods of time on the island.
7. Safety Security organisations including the police and Guardia Civil have decades of experience in keeping the island safe for numerous visitors. Due to the few possible points of entry, it is comparably easy to monitor the island’s border security.
3. Infrastructure Mallorca has a highly developed and fast motorway
8. Diverse landscapes
network, and even the places located furthest away from the capital of Palma can be reached by car within 90 minutes. Thanks to the modern fibre optic network, almost all households can be provided with fast Internet connection, which makes the decision to work from home on the island even easier.
Mallorca’s attractiveness is based on its diverse and varied landscapes. The Serra de Tramuntana mountain range spreads over an area of 92 kilometres, from the southwest to the northern tip of the island. The impressive interplay between mountains and sea appeals to the island’s visitors and residents alike.
4. Capital of Palma
9. Education
As a travel destination in its own right, Palma de Mallorca offers a combination of architecture, culture, individual boutiques and shops, as well as a yearround restaurant scene. Many of the historic buildings have been renovated and the cosmopolitan city boasts numerous new openings as well as diverse social and cultural activities.
In Mallorca, there are 17 international schools which provide a good standard of education for native and foreign residents, from pre-school right through to university. Children can be taught in their native language and learn Spanish at the same time. The University of the Balearic Islands offers a diverse range of academic programmes. 10. Culture and society
5. Healthcare Mallorca provides professional healthcare management in all parts of the healthcare system. This encompasses multi-lingual services in first-class doctors’ surgeries and hospitals. The island is therefore able to ensure medical care for millions of visitors.
The island’s social and cultural agenda includes a broad spectrum of concerts, food and wine festivals, sports tournaments, and the popular traditional island fiestas the whole year through. Additionally, the exclusive marinas in Puerto Portals and Port Adriano organise popular events, such as the Classic Car Rally, the Aftersun Market, and the Christmas Market.
Mallorca 10 Reasons to Invest in Mallorca | 15
MALLORCA
New Developments In order to meet the consistently high demand for new living space in the Balearics, the marketing of new-build projects has become very important in the real estate industry. The transaction volume generated by new-build projects was around 890 million euros in 2021, which demonstrates growth of 56% in comparison to the previous year (2020: 571 million euros, 2019: 518 million euros). According to data provided by the Spanish Ministry of Transport, Mobility and Urban Agenda (MITMA), the number of construction projects started in 2021 (1,104) settled at a stable level, as in the previous years. However, at the moment there are still approx. 61% fewer residential units being built than in the record year 2007 (see Figure 8 below). The number of new-build properties sold in the Balearic Islands has increased compared to the previous year (2021: 1,582 transactions; 2020: 1,167 transactions). It is notable that the average prices increased significantly by 14% in the same period. Due to the high land prices and increasing construction costs, it is increasingly difficult to construct affordable living spaces. Many of the ongoing construction projects are in and around Palma. A modern cityscape is emerging in the area stretching between Palma’s marina, El Terreno and Plaza Gomila, through to Son Armadams, with numerous new, high-quality residential units both for rent and for sale. New, attractive residential projects with views of the golf courses are currently being built in Palma’s most exclusive district, Son Vida.
New Construction Projects Started
3.000 2.500 2.000 1.500 1.000 500
2021
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
0
Additionally, there are plans for several new projects over the next two years in the traditional wine-producing regions, such as Binissalem, Biniali, and Sencelles. Above the popular marina of Port Andratx, there is ongoing work on a further large, exclusive new-build development featuring 24 Mediterranean-style homes with modern finishings. When it comes to multi-unit development, all of the units are usually sold during the building phase. Many clients are interested in purchasing during the planning stage, or at the start of building work, as this means they have the potential to personalise their property or change certain elements. Prices are also more attractive right at the start, which is why new-build properties are worthwhile investments. Excellent quality of construction, modern features, and the latest technical standards are further factors which buyers particularly appreciate. The topic of sustainability has become significantly more important. One of the most important tasks across the building sector is the reduction of CO2 emissions. The construction industry is responsible for 1/3 of all CO2 emissions—4 times as much as global aviation. For each tonne of concrete, a tonne of CO2 is produced. Wood, on the other hand, is a renewable resource and produces 52% less CO2 than it absorbs. As a result, the building sector is increasingly shifting its focus towards such resources. To support sustainable development, last year the Balearic Government allocated subsidies totalling 41 million euros for insulation and solar energy.
Figure 8: New Construction Projects Started - Balearic Islands, MITMA
Mallorca New Developments | 16
Palma de Mallorca
Residential Property Market
I
n Palma, our clients buy their properties for personal use, to spend as much time as possible on the island, and to enjoy everything the Mediterranean has to offer. They also consider their purchase to be a secure investment for the future. Terence Panton, Managing Partner of Engel & Völkers Palma Centre & East 21 years on Mallorca and 21 years with Engel & Völkers
I
n the capital of the Balearics, great emphasis is placed on a high quality of life and making sustainable investments in consistently improving infrastructure. With an investment of more than 100 million euros in the zone Paseo Marítimo and Club de Mar yacht club, Palma is one of the most attractive cities in the entire Mediterranean. Hans Lenz, Managing Director of Engel & Völkers Palma Southwest Born on Mallorca and 10 years with Engel & Völkers
The cosmopolitan city of Palma de Mallorca impresses
at Club de Mar yacht club and marina - this is the largest
both international visitors and its residents with
maritime project in the Balearics, and construction
a diverse range of cultural facilities and historic
work is progressing quickly. Palma is set to have one of
buildings. Palma's lively nautical area with several
the most modern and sustainable marinas in the entire
marinas has a Mediterranean ambience and an array
Mediterranean. There are plans to build a dock for four
of first-class dining options the whole year through.
boats of between 136 and 170 metres in length and with
There are numerous modern and traditional boutiques
a beam of up to 24 metres. It will be the largest wharf
and shops in the winding streets of the historic centre.
in Spain. Around 60 million euros have been invested
The city’s beach, Can Pere Antoni, is located just a
in integrating the marina nto the city's waterfront
few metres away from the Gothic Cathedral of La Seu.
boulevard, the Paseo Marítimo. The future Club de Mar will be an open-plan area with modern buildings
Step by step, the island of Mallorca is on the path to
and diverse vegetation. According to José Luis Arrom,
becoming a sustainable travel destination. Since March
Club de Mar’s Director, the renovation will lead, both
2021, single-use plastic products have been banned and
directly and indirectly, to the creation of around 500
there are several community initiatives which support
new jobs. In addition, the Balearic Islands Government
positive development across the island, such as filtered
plans to make significant investments to the island’s
drinking water from public water dispensers. Measures
infrastructure and sustainability this year. One of the
connected to traffic calming as well as the reduction of
most important changes is the natural redesign of the
air and noise pollution are systematically enforced by
harbour promenade of Palma. Over the space of two
the government. In Palma’s centre, there are increasing
years, this large-scale project aims to substantially
numbers of restricted traffic zones, which have either
improve the spatial interaction between the marina
been turned into green spaces or are completely car-free
and the city and create more space for pedestrians by
zones. In May 2020, extensive renovation work started
reducing the Paseo Marítimo to two lanes of traffic
Palma de Mallorca Residential Property Market | 17
in each direction. This project will also optimise
which also aim to attract international workers and
the use of public transportation along the popular
investors. There is also continuous development in the
promenade. Moreover, there is a plan to connect the
tourism sector in Palma de Mallorca: several luxurious
neighbourhoods of El Terreno and Es Jonquet via steps.
hotels, such as the Palma Riad, Concepció by Nobis,
Finally, all the vegetation and planting in the area will
and Nivia Born Boutique Hotel, welcomed their first
be irrigated via a sustainable system using rainwater.
guests in 2021. At Engel & Völkers Palma, the most
The new technology centre in Palma's Nou Levant
sought-after areas include the historic centre as well
district is currently being developed with the Balearic
as the neighbouring districts, Portixol, and Playa de
Islands University and is part of a project to create a
Palma. Potential buyers primarily come from Germany
high-tech quarter based on the Silicon Valley model
and Scandinavia. The decision to buy is made much
in California. In future, topics such as digitalisation
more quickly than a year ago: properties are usually
and renewable energies will be researched here. In
sold within three months of being listed on the market.
addition, the emerging new area of Nou Llevant will
Clients often have very concrete ideas about their future
be characterised by several new development projects,
properties and do not usually take out mortgages.
Transaction Volume Total Market Palma de Mallorca
Data in Euro
1.600 M 1.500 M 1.400 M
1.300 M 1.300 Mio. 1.200 M 1.100 M 1.000 M 900 M 800 M 700 M 600 M 500 M 400 M 300 M 200 M 100 M 0
2010
2011
2012
2013
2014
Figure 9: Real Estate Transaction Volume - Total Market Palma de Mallorca, MITMA
The transaction volume in the entire market was around 1.5 billion euros in 2021, which demonstrates growth of 52% in comparison to the previous year and is the highest figure since more than a decade. The current numbers
2015
2016
2017
2018
2019
2020
2021
confirm the extremely high level of interest from international and local buyers in purchasing a property in this cosmopolitan city and the fact that Palma de Mallorca is recognised as a secure location for real estate investment.
Location and Infrastructure
Popular Properties
Current Developments
Palma de Mallorca has excellent flight connections to international travel destinations as well as outstanding infrastructure. In this region, the numerous hospitals ensure round-the-clock medical care. Additionally, international schools offer good perspectives for families who wish to spend the whole year on the island.
At Engel & Völkers in Palma, buyers continue to be interested in renovated apartments with a terrace or a balcony. Demand for modern town houses and new-build projects is high in neighbourhoods such as Portixol and Es Molinar.
There are plans for several new luxury renovation projects in the historic centre and in Portixol. All aspects and topics which contribute to a sustainable and liveable future are of high priority for the responsible parties in the local government. Plans are in place for new tourism projects, such as the restructuring of Playa de Palma.
Palma de Mallorca Residential Property Market | 18
Average Asking Prices - Apartments Total Real Estate Market Palma de Mallorca Very good location
Top location
Average location
Good location
Simple location
Greenery
Water
Palma Surroundings & Son Vida
Palma
Central Old Town Santa Catalina
Génova
Bellver
5
El Terreno La Bonanova
San Agustín
Portixol Cala Major Porto Pi
Southwest
Es Molinar Ciudad Jardín
Playa de Palma El Arenal
In Palma de Mallorca, prices for apartments have reached a stable level. In the prime location of Génova, the average price for an apartment is 1 million euros. In very good locations, such as the historic centre, Portixol, Es Molinar, and Ciudad Jardín, asking prices are between 700,000 and 800,000 euros, as in the previous year. The neighbourhoods of Santa Catalina and San Agustín display average prices of between 600,000 and 700,000 euros. In El Terreno and La Bonanova, apartments are on the market for between 450,000 and 600,000 euros on average. The area around El Arenal continues to provide entry opportunities starting at 400,000 euros. Apartments - Average Prices in Euro 2020
2021
> 1,000,000
Townhouses - Average Prices in Euro Trend
2020
2021
Trend
> 1.000,000
> 3,400,000
> 3,400,000
700,000 - 800,000
700,000 - 800,000
2,000,000 - 2,300,000
2,000,000 - 2,300,000
600,000 - 700,000
600,000 - 700,000
1,500,000 - 2,000,000
1,500,000 - 2,000,000
450,000 - 600,000
450,000 - 600,000
1,000,000 - 1,500,000
1,000,000 - 1,500,000
< 400,000
< 400,000
< 1,000,000
< 1,000,000
Town Houses In Palma’s historic centre, town houses are on the market for an average of 3.4 million euros in the premium segment. On the Paseo Marítimo and in Santa Catalina, the asking prices remain unchanged at between 2 and 2.3 million euros. Prices in La Bonanova, Portixol, Es Molinar, and Ciudad Jardín have also remained stable: average asking prices are between 1.5 and 2 million euros on average. In the area surrounding Playa de Palma, houses are available for an average of 1 million euros.
Palma Surroundings & Son Vida Central
Old Town Paseo Marítimo
Santa Catalina Sant Agustí Mallorca
La Bonanova
Southwest Cala Major
Portixol Es Molinar Ciudad Jardín
Playa de Palma El Arenal
Source: Engel & Völkers Mallorca, Company Data
Palma de Mallorca Residential Property Market | 19
Palma Surroundings & Son Vida
Residential Property Market
W
ith its unique villas, Son Vida offers the most exclusive kind of living in Mallorca. Its proximity to Palma's centre, the high level of safety and the spectacular views make it one of the island's most sought-after locations. Gabriela Muñoz, Managing Partner of Engel & Völkers Palma Surroundings & Son Vida 25 years on Mallorca and 17 years with Engel & Völkers
Son Vida is situated in peaceful surroundings, amidst green landscapes, and is only a few minutes’ drive from the centre of Palma. With three golf courses, exquisite hotels, and the Green Valley International School, this area impresses wealthy clients with its good infrastructure and magnificent location, which is incomparable across the island: spectacular views of the capital, Palma, and the sea are guaranteed. At the same time, exclusivity is one of the main reasons clients buy a high-end property in Son Vida. There are some traditional villages nearby such as Puigpunyent, Establiments and Esporles, located at the edge of the Tramuntana Mountains, where typical Mallorcan fincas with modern interiors are
in demand with clients in the luxury segment. In the region surrounding the golf courses, in the so-called “Palma Golf” housing development, in comparison to Son Vida, it is possible to buy a property that represents good value for money. This year, a trend towards longer stays or a complete move to the island has been confirmed amongst the primarily Germanspeaking buyers. Clients make their decision to buy significantly more quickly than they did previously: it takes a maximum of nine months to sell most properties in Son Vida. These include houses which are sold to buyers in the United Kingdom, for example, following an online viewing. Properties are usually bought for personal use and without financing.
Location and Infrastructure
Popular Properties
Current Developments
Son Vida is recognised as one of the safest and most exclusive areas in Mallorca. It is surrounded by golf courses, numerous international schools, and private hospitals. The beaches in the southwest of the island as well as the marinas in Palma and Portals are only a few minutes’ drive away.
There continues to be a high level of demand for large and modern villas in Son Vida, along with town houses and apartments in Palma’s surroundings. Completely furnished properties are becoming increasingly important: international clients want to be able to move into their properties straight away.
In Son Vida, construction projects are currently being worked on which will go on the market within the next three years. “Palma Golf” offers attractive new properties with a view of the golf course. Due to the limited space in the hills of Son Vida, prices will rise in future.
Photo: Marco Richter
Palma Surroundings & Son Vida Residential Property Market | 20
Average Asking Prices - Houses Total Real Estate Market Palma Surroundings & Son Vida Very good location
Top location
Average location
Good location
Son Vida
West
Simple location
Greenery
Water
Esporles
Establiments
Central Puigpunyent Galilea
Arabella Park Son Vida Southwest Palma
In the prime location of Son Vida, exclusive villas can be acquired for an average price of 5 million euros. In the neighbouring villages of Puigpunyent, Establiments, and Esporles, asking prices for villas and fincas are between 2.3 and 3 million euros. In both locations, the prices have risen moderately in comparison to the previous years and are set to increase further. In the mountain village of Galilea and in Arabella Park, located beside Son Vida, average entry prices are stable at around 1.5 million euros.
Houses - Average Prices in Euro 2020
2021
> 4,700,000
Apartments - Average Prices in Euro Trend
2020
2021
> 5,000,000
> 800,000
> 900,000
2,000,000 - 2,500,000
2,300,000 - 3,000,000
350,000 - 500,000
500,000 - 700,000
< 1,500,000
< 1,500,000
< 350,000
< 400,000
Apartments
West
In Son Vida, the average asking price for an apartment has risen in comparison to the previous year and is currently 900,000 euros. The prices in “Palma Golf” in neighbouring Arabella Park indicate an upward trend: here, apartments are placed on the market for between 500,000 and 700,000 euros. In the surrounding villages, entry prices are around 400,000 euros. Source: Engel & Völkers Mallorca, Company Data
Trend
Esporles
Establiments
Puigpunyent Galilea
Southwest
Son Vida Arabella Park
Inselmitte
Palma
Palma Surroundings & Son Vida Residential Property Market | 21
Mallorca Southwest
Residential Property Market
T
he southwest is still one of the island’s most popular regions for year-round living. Its proximity to Palma, international schools, exclusive marinas, golf courses, and first-class restaurants will ensure that property prices continue to rise in the coming years. Hans Lenz, Managing Director of Engel & Völkers Mallorca Southwest Born on Mallorca, 10 years with Engel & Völkers
In the southwest of Mallorca, potential buyers increasingly make the decision to live on the island the whole year round in areas like Santa Ponsa, Port Andratx, Portals, and Bendinat. The numerous benefits of this unique residential area, which is located close to Palma and situated on the coast, speak for themselves: established international schools, such as Agora Portals, Baleares International College, and Queen’s College, an excellent road network, a high-quality range of services including outstanding hotels and restaurants, and top sports facilities. This modern infrastructure also offers the opportunity to work from the island making the southwest an ideal place to live all year round. Both the impressive landscapes, featuring small bays and long beaches, as well as the exclusive marinas of Puerto
Portals and Port Adriano leave nothing to be desired amongst the mostly German-speaking property buyers. However, this region also attracts buyers from the United Kingdom, Spain, and Sweden with increased demand from the Netherlands and Poland. Increased demand was also observed from the Netherlands and Poland. At Engel & Völkers in the southwest of Mallorca, the increasingly affluent clients make their decisions to buy a new home on the island quickly and without compromise and often a property is sold within six months of coming onto the market. Clients do not tend to consider borrowing; if they do, it is mostly due to tax advantages. As a result of the constantly high level of demand and limited supply of properties, prices in the future are set to achieve new record values in the southwest of the island.
Location and Infrastructure
Popular Properties
Current Developments
The excellent infrastructure in the southwest of Mallorca attracts many families and business professionals to the region. The exclusive marinas of Puerto Portals and Port Adriano offer fantastic restaurants and an interesting cultural and social programme. Six outstanding golf courses in Santa Ponsa (4), Bendinat, and Andratx are available for golf fans.
Properties with large outdoor areas in combination with modern architecture and Mediterranean interior design are particularly sought-after. Some properties are purchased primarily as investments. Buyers’ interest in purchasing properties with a sustainable energy supply is starting to rise.
The Mallorca Country Club in Santa Ponsa is seen as the new home of lawn tennis in southern Europe. The ATP Mallorca Championships attracts top world ranking tennis players and many international guests. Following a comprehensive renovation, the St. Regis Mardavall Mallorca stands out due to its extraordinary ambience. In 2022, a further Kimpton luxury hotel is set to open in Santa Ponsa.
Mallorca Southwest Residential Property Market | 22
Average Asking Prices - Houses Total Real Estate Market Mallorca Southwest Very good location
Top location
Average location
Good location
Simple location
Greenery
Water
West Southwest
Palma Surroundings & Son Vida
Sant Elm
Palma
Andratx Es Capdellà Calvià Port Andratx
Peguera
Costa d‘en Blanes Cas Català
Costa de la Calma
Bendinat
Portals
Camp de Mar Palmanova
Santa Ponsa
Port Adriano Sol de Mallorca
In the prime location of Port Andratx, the average asking price for villas is 4.5 million euros. Due to their very good locations, neighboring areas to Palma including Bendinat, Portals and Costa d'en Blanes reach an average price level between 3 and 4 million euros. Asking prices also continue to rise in Santa Ponsa: here, a villa costs between 2 and 3 million euros on average. In the island’s interior, in the municipalities of Andratx and Calvià, average prices are between 1.5 and 2 million euros. In all the areas of the southwest, prices are expected to increase even further. Houses - Average Prices in Euro 2020
2021
> 4,300,000
Apartments - Average Prices in Euro
Trend
2020
2021
> 4,500,000
> 900,000
> 1,000,000
3,000,000 - 4,000,000
3,000,000 - 4,000,000
600,000 - 800,000
750,000 - 1,000,000
1,800,000 - 3,000,000
2,000,000 - 3,000,000
400,000 - 600,000
500,000 - 750,000
1,400,000 - 1,800,000
1,500,000 - 2,000,000
< 400,000
< 500,000
< 1,400,000
< 1,500,000
Apartments When it comes to apartments, Bendinat, Portals, and Costa d’en Blanes are the prime locations in the southwest. In comparison to the previous year, the average prices for apartments have risen to 1 million euros. It is also possible to recognise positive price development in Port Andratx, Camp de Mar, and Sol de Mallorca: here, properties are placed on the market for between 750,000 and 1 million euros. Entry prices in the southwest of Mallorca are currently around 500,000 euros and are expected to rise.
Trend
West Palma Surroundings & Son Vida
Sant Elm
Palma
Andratx Es Capdellà Calvià
Port Andratx
Costa d'en
Peguera Camp de Mar
Cas Català
Costa de la Blanes Calma
Santa Ponsa Port Adriano
Portals Bendinat
Palmanova
Sol de Mallorca
Source: Engel & Völkers Mallorca, Company Data
Mallorca Southwest Residential Property Market | 23
Mallorca West
Residential Property Market
O
ur clients wish to spend more time on the island in their own home with a garden and a view of the Tramuntana Mountains or the sea. High-quality properties are in high demand in Sóller, Deià, and Valldemossa.” Eddy Barrera, Managing Director of Engel & Völkers Mallorca West 18 years on Mallorca and 16 years with Engel & Völkers
On the west coast of Mallorca, international buyers discover a special blend of spectacular landscapes and Mallorcan towns with traditional character. In the prime locations, such as Deià, Sóller, and Valldemossa, it is easy to recognise that this region’s culture is characterised by its long history. In comparison to previous years, there is a higher level of demand in Valldemossa due to its proximity to the capital of Palma as well as its high-quality range of authentic restaurants and shops. Those properties with a pool and a large outdoor area with a view of the mountains or the sea are particularly popular. Properties with a holiday rental license are increasingly attracting attention
in comparison to the previous year. In addition, an interesting trend can be observed: there is stronger demand for self-sufficient houses. Increasing numbers of buyers are wealthy clients, who usually purchase their dream properties within 3 to 6 months by means of a combination of cash payment and financing in order to make use of tax advantages. In 2021, those clients who bought high-value properties primarily came from Great Britain, Germany, and Denmark. A higher level of demand from potential buyers from the USA was also recorded. Those who seek an excellent quality of life in an authentic and safe environment will find a longterm real estate investment in the west of the island.
Location and Infrastructure
Popular Properties
Current Developments
Art, culture, and cuisine give the west of Mallorca its unique charm and international reputation. In the midst of the Serra de Tramuntana, which was declared a UNESCO World Heritage Site in 2011, places like Sóller and Port de Sóller offer outstanding infrastructure and can be easily reached from Palma.
The properties in the west of the island often provide a view of the mountainous landscapes or the Mediterranean. Generally, potential buyers wish to stay in Mallorca for longer periods of time in their own home with a garden or a large terrace with a pool.
The entrepreneur Richard Branson is renovating one of the island’s most notable historic estates for a discerning clientele: Son Bunyola is set to open as the most luxurious hotel in the Mediterranean in 2023. This investment will further strengthen the region’s international status.
Mallorca West Residential Property Market | 24
Average Asking Prices - Houses Total Real Estate Market Mallorca West Very good location
Top location
Good location
Average location
Simple location
West
Greenery
Water
North
Port de Sóller
Fornalutx Sóller
Biniaraix
Deià
George Sand Central
Banyalbufar
Valldemossa
Estellencs
Palma Surroundings & Son Vida Southwest
In 2021, slight price increases were recorded in the west of Mallorca. In the prime locations, such as Deià, George Sand, and Port de Sóller, the average asking price is 3.5 million euros. In Valldemossa, Banyalbufar, and Estellencs, villas and fincas with large amounts of land and views are priced at between 2.5 and 3 million euros. Around Sóller, prices are also rising slightly in comparison to previous years. Houses - Average Prices in Euro
2020
2021
> 2,900,000
Apartments - Average Prices in Euro
Trend
2020
2021
> 3,500,000
> 450,000
> 500,000
2,500,000 - 2,900,000
2,500,000 - 3,000,000
400,000 - 450,000
400,000 - 450,000
1,300,000 - 2,300,000
1,300,000 - 2,300,000
380,000 - 400,000
380,000 - 400,000
1,200,000 - 1,300,000
1,000,000 - 1,500,000
< 310,000
< 310,000
< 1,000,000
< 1,000,000
Apartments
Trend
North Port de
Sóller
Aside from the prime location of Port de Sóller, where the asking prices display an upward trend, prices remain stable in the property market in the west of Mallorca. In the region surrounding Deià, apartments are priced at between 400,000 and 450,000 euros on average. In Sóller, as well as in the villages of Fornalutx and Biniaraix, it is possible to find an apartment for a price between 380,000 and 400,000 euros, as in previous years. Source: Engel & Völkers Mallorca, Company Data
Fornalutx Biniaraix Sóller
Deià George Sand
Banyalbufar
Valldemossa
Central
Estellencs
Southwest
Palma Surroundings & Son Vida
Mallorca West Residential Property Market | 25
Mallorca North
Residential Property Market
P
eople want space and freedom and after all that has happened, there is no better place than Mallorca. That is what our clients tell us.
Gary Hobson, Managing Director of Engel & Völkers Mallorca North 15 years on Mallorca and 13 years with Engel & Völkers
The immediate proximity to the Serra de Tramuntana and some of Mallorca’s most beautiful beaches mean that the north of the island is quite a special place for nature lovers. The most popular places are Alcúdia and Pollensa, although some of the remote municipalities, such as Campanet, Búger and Muro, as well as coastal areas, like Can Picafort and Son Serra de Marina, are receiving more and more attention. Currently, we see that properties with extensive outdoor space, such as a garden or a terrace, are in greater demand than they were two years ago: a trend, not least due to the pandemic. Clients who bought high-value properties were primarily from Germany, Great Britain, Spain,
and Switzerland. There was also a higher level of demand from potential buyers from the Czech Republic, the USA, and Poland. In 2021, the search for properties was significantly shorter, which is reflected in the average marketing period of 3-6 months. Most buyers purchase their properties without financing, with only 20% taking out a mortgage. Online viewings continued to be popular, and there were properties sold in this manner. The demand for high-quality residential properties in the north of Mallorca remains high, although there are significantly fewer properties on the market. This confirms the trend of recent years: Mallorca is seen as a safe haven for investments.
Location and Infrastructure
Popular Properties
Current Developments
For sports activities, there are two golf courses and plenty of opportunities to go biking and practice water sports. The international school in Crestatx gives families the opportunity to live in the north of Mallorca, not just holiday there. Menorca, mainland Spain, and even France can be reached by ferry from Port Alcúdia.
High-quality properties in the first sea line are particularly sought-after, along with rural and rustic properties set amidst the diverse countryside. Buyers prefer new-builds with modern interior design and underfloor heating. The greatest demand is for properties priced at 1.2 million euros or higher.
In 2021, four new boutique hotels were opened in Alcúdia and Pollensa, which will attract more international clientele to the region. Additionally, substantial amounts were invested in the modernisation of the marina in Alcúdia. In the north of Mallorca, high-quality properties are in high demand and prices are expected to continue to increase.
Mallorca North Residential Property Market | 26
Average Asking Prices - Houses Total Real Estate Market Mallorca North Very good location
Top location
Average location
Good location
Simple location
Greenery
Water
North
Cala San Vicente
Formentor
Puerto de Pollensa Pollensa Alcúdia Escorca
Alcanada
Puerto de Alcúdia
Playa de Muro
Sa Pobla
West
Campanet Can Picafort Búger
Muro
Central
Son Serra de Marina Northeast
Santa Margalida
There is a broad range of prices for villas and fincas in the north of Mallorca. In the prime location of Formentor, the average asking price is 6.5 million euros (2020: 6 million euros), due to the limited number of properties. The region around Pollensa continues to receive increased attention and, as such, average prices are between 2.5 and 3.8 million euros. In the coastal towns, such as Alcúdia, Puerto Alcúdia, and Puerto Pollensa, houses are on the market for between 2 and 2.7 million euros, with a further upswing expected. The rural areas towards the island’s interior provide a fair price-performance ratio, with properties priced between 1.1 and 1.5 million euros. Houses - Average Prices in Euro
2020
2021
> 6,000,000
Apartments - Average Prices in Euro
Trend
2020
2021
Trend
> 6,500,000
> 400,000
> 450,000
2,500,000 - 3,500,0000
2,500,000 - 3,800,0000
350,000 - 400,000
350,000 - 400,000
1,500,000 - 2,500,000
2,000,000 - 2,700,000
320,000 - 350,000
320,000 - 350,000
1,100,000 - 1,500,000
1,100,000 - 1,500,000
300,000 - 320,000
300,000 - 320,000
< 1,100,000
< 1,100,000
< 300,000
< 300,000
Apartments The average prices for apartments in this region have remained stable and are at the same level as in the prior year. In the prime locations Puerto de Pollensa, Alcanada, Puerto de Alcudia, and Playa de Muro, prices increased: here, asking prices are 450,000 euros on average. In very good locations, such as Alcúdia and Pollensa, the asking price is between 350,000 and 400,000 euros, as in the prior year. For apartments located inland and along the coast (Cala San Vicente, Can Picafort, Son Serra de Marina), prices remain unchanged at 300,000 euros.
Cala San Vicente
Formentor
Puerto de Pollensa Pollensa Alcúdia
Alcanada
Escorca
Puerto de Alcúdia Playa de Muro
Sa Pobla
West
Campanet Búger
Can Picafort Muro Son Serra de Marina
Central
Santa Margalida
Northeast
Source: Engel & Völkers Mallorca, Company Data
Mallorca North Residential Property Market | 27
Mallorca Northeast
Residential Property Market
W
hether you want to hike in the mountains, sail along the coast, ride a bike on quiet streets, or play golf in the countryside: in the northeast of the island, it’s possible to do many activities without having to travel far. Reiner Fischer, Managing Partner of Engel & Völkers Mallorca Northeast 19 years on Mallorca and 19 years with Engel & Völkers
The northeast of Mallorca is characteristed by its untouched nature and impressive coasts. The historic small towns and villages are rich in character and home to numerous authentic restaurants which serve Mallorcan cuisine to their guests the whole year through. Those seeking a calm and high quality of life will find both rustic and modern fincas and villas with large outdoor areas in this area. Some of the most popular regions include Canyamel, Costa de los Pinos, and Artà. The municipality of Sant Llorenç is also receiving increased attention from potential buyers, who mostly come from German-speaking countries.
Furthermore, there was stronger demand from the Netherlands in 2021. Properties in the northeast of the island are usually sold within 6 to 12 months, mostly without financing. For example, one property located in the first sea line was sold in a digital manner—solely based on an online viewing. Additional buying criteria include the region’s high level of safety and unique tranquility amidst the green landscapes of forests and meadows. Buyers in the northeast are usually looking for a secure investment opportunity and would like to spend more time in Mallorca in future—or even work from their remote office at their dream property.
Location and Infrastructure
Popular Properties
Current Developments
Both the diverse coastline and the extensive landscapes contribute to a special atmosphere in the northeast, away from the tourist hustle. Opportunities for outdoor activities such as golf, sailing, or hiking. The Rafael Nadal Tennis Academy and its American International School in Manacor further strengthen the region’s appeal.
Some of the most popular properties sold in the northeast include fincas and villas with large outdoor areas, such as a garden or terrace. It is possible to observe increased demand for properties with rental licenses in this region. Additionally, highquality properties in the first sea line are in greater demand.
In 2021, an old farm estate was given new life in the form of the Finca Hotel Es Racó d’Artà. This 5-star destination contributes to the region’s international development. In the northeast of the island, property prices have risen in comparison to the prior year. Prices are seeing an upswing in premium locations, particularly for properties close to the sea.
Mallorca Northeast Residential Property Market | 28
Average Asking Prices - Houses Total Real Estate Market Mallorca Northeast Very good location
Top location
Good location
Average location
Simple location
Greenery
Water
Northeast
Betlem Colònia de St. Pere Cala Mesquida
North
Cala Ratjada Capdepera Font de Sa Cala
Artà
Canyamel
Son Servera
Central
Port Verd
Sant Llorenç Son Carrió
Cala Millor
Manacor
Southeast
Porto Cristo Cala Mendia
In the sought-after locations in the northeast of Mallorca, the average prices are experiencing an upward trend. In the prime locations around Artà and Colònia de St. Pere, the average price for houses is 1.9 million euros—and this is set to increase. In the coastal towns between Cala Mesquida and Canyamel, there were slight price increases in comparison to the prior year. The same is true for Mallorca’s third largest municipality, Manacor: average asking prices for properties in this region are between 1.5 and 1.8 million euros. Entry prices for properties in the northeast remain stable at 1.4 million euros. Houses - Average Prices in Euro
2020
2021
> 1,700,000
Apartments - Average Prices in Euro
Trend
2020
2021
Trend
> 1,900,000
> 350,000
> 450,000
1,500,000 - 1,700,000
1,500,000 - 1,800,000
320,000 - 350,000
350,000 - 450,000
1,400,000 - 1,500,000
1,400,000 - 1,500,000
280,000 - 320,000
300,000 - 350,000
< 1,400,000
< 1,400,000
< 280,000
< 300,000
Apartments Betlem
In comparison to 2020, the average prices have risen for apartments in Mallorca’s prime locations. These locations include the municipalities of Artà and Colònia de St. Pere, with average prices of 450,000 euros. In the coastal areas of Canyamel, Cala Millor, and Cala Ratjada, apartments are on the market for between 350,000 and 450,000 euros. Apartment prices also demonstrate high potential for development here. Entry prices for apartments in Manacor, Sant Llorenç and Son Carrió are similar to the prior year, at 300,000 euros.
Colònia de St. Pere
Cala Mesquida
North
Cala Ratjada Capdepera Font de Sa Cala
Artà
Central
Canyamel
Son Servera Sant Llorenç
Manacor Southeast
Port Verd
Son Carrió
Cala Millor
Porto Cristo Cala Mendia
Source: Engel & Völkers Mallorca, Company Data
Mallorca Northeast Residential Property Market | 29
Mallorca Central
Residential Property Market
T
he decision to buy is being made increasingly quickly: if clients see a house which meets their expectations, they buy it without hesitation and without looking at other houses. A trend, not least due to the pandemic. Christina Deutsch, Managing Partner of Engel & Völkers Mallorca Central 29 years on Mallorca and 19 years with Engel & Völkers
The centre of the island stands out thanks to its historic villages—immersed in natural landscapes and surrounded by fields, olive groves, and winegrowing regions. Those who value a sustainable and environmentally conscious lifestyle will find regional produce of the highest quality at the many weekly markets. In the island’s interior, prospective buyers can choose between modern, renovated village homes, newbuilds with a pool, and typically Mallorcan country houses offering a high degree of privacy. Despite the positive price development, buyers receive good value for money in the centre of the island. Some of the most popular areas include the mountain village of Alaró, Santa Maria, and Puntiró in the immediate vicinity of Palma, as well as Selva, Binissalem, and
Montuiri. Some lesser-known villages, such as Llubí, Sineu, Petra, Sencelles, and Ariany, also experienced a high level of demand in 2021. According to Engel & Völkers Mallorca, most of the clients in this region come from German-speaking countries—mostly families and middle-aged couples—who purchase their properties either without any financial support or by taking out a mortgage. An increase in the number of potential buyers from Spain, France, Belgium, and the USA can also be observed. In 2021, properties sold faster than ever before and the demand for attractive properties exceeds supply. A growing trend: buyers attach greater value to sustainability and the possibility to be self-sufficient, like being able to harvest olives and grapes from their own gardens, for example.
Location and Infrastructure
Popular Properties
Current Developments
Clients appreciate the direct proximity to the capital, Palma, in combination with a rural lifestyle in the authentic villages. The region has numerous restaurants, which are open yearround, two golf courses (Son Gual und Puntiró), and multiple shopping opportunities, such as the Mallorca Fashion Outlet.
Traditional country houses with a large garden and pool experience particularly strong demand due to their high degree of privacy. Additionally, high-quality fincas with typically Mallorcan stone façades and village homes with a pool—regardless of whether they are freshly renovated or new-builds—are popular amongst potential buyers.
The demand for new-build properties in places such as Algaida and Llubí, as well as on the outskirts of Selva, is higher than ever. Often, these properties are newly built fincas or high-quality townhouses which have been renovated and combine Mediterranean elements with modern features.
Mallorca Central Residential Property Market | 30
Average Asking Prices - Houses Total Real Estate Market Mallorca Central Very good location
Top location
Average location
Good location
Simple location
Greenery
Water
Central
Mancor de la Vall
Selva North
Bunyola Alaró
West
Lloseta
Inca
Palmanyola
Llubí
Binissalem
Maria de la Salut
Consell Santa Maria Marratxí Es Pont d‘Inca
Costitx Sencelles
Puntiró Son Gual
Sineu
Ariany
Lloret de Vistalegre
Northeast
Petra San Juan
Son Ferriol
Palma
Algaida
Montuïri
Southeast South
In the centre of Mallorca, the average prices for fincas and villas are on the rise: in comparison to the previous year, properties in the prime location of Santa Maria are launched on the market for a higher average price of 3 million euros. In the municipalities of Alaró, Bunyola, and Puntiró, the asking prices for properties are between 2 and 3 million euros, which also indicates an increase in price. Prices for properties in the neighbouring municipalities, such as Algaida, Binissalem, and Consell, are between 1.5 and 2 million euros. Thanks to the fast road and train connections to the capital of Palma, prices in Marratxí have also risen: here, houses can be bought for between 1.2 and 1.5 million euros. Houses - Average Prices in Euro
2020
2021
> 1,850,000
Apartments - Average Prices in Euro
Trend
2020
2021
Trend
> 3,000,000
> 320,000
> 350,000
1,500,000 - 1,800,000
2,000,000 - 3,000,000
300,000 - 320,000
320,000 - 350,000
1,200,000 - 1,500,000
1,500,000 - 2,000,000
260,000 - 300,000
280,000 - 320,000
1,000,000 - 1,200,000
1,200,000 - 1,500,000
220,000 - 260,000
220,000 - 280,000
< 1,000,000
< 1,000,000
< 220,000
< 220,000
Apartments Selva
Mancor de la Vall
The average prices for apartments in Mallorca’s interior also demonstrate an upward trend: around Santa Maria, the average starting price for an apartment is 350,000 euros. Prices have also increased in the municipalities of Marratxí and Son Gual in comparison to the prior years and asking prices for apartments are between 320,000 and 350,000 euros. In Alaró and Bunyola, average purchase prices are between 280,000 and 320,000 euros. Prices are set to rise in all regions.
North
West
Bunyola Alaró Lloseta Inca Llubí Palmanyola Binissalem Santa Maria Consell Maria de la Salut Costitx Sineu Ariany Sencelles Marratxí Northeast Puntiró Lloret de Vistalegre Son Gual Petra Es Pont d‘Inca San Juan Son Ferriol Algaida Palma Montuïri
Southeast South
Source: Engel & Völkers Mallorca, Company Data
Mallorca Central Residential Property Market | 31
Mallorca Southeast
Residential Property Market
D
ue to the pandemic, the attention of more buyers has been drawn to the island, as they see Mallorca as a “light” version of being abroad. Offering easy accessibility and a modern health system that is comparable to the one they have at home." Nils Haase, Managing Partner of Engel & Völkers Mallorca Southeast 20 years on Mallorca and 29 years with Engel & Völkers
With a multitude of magnificent beaches and authentic fishing ports, the southeast of Mallorca is the perfect region for holiday properties—regardless of whether they are for renting out or for a buyer’s personal use. The most popular areas in the southeast include Santanyí and the surrounding area, Alqueria Blanca and the hilly landscapes, as well as the small harbour town of Portopetro. Additionally, there is constant demand for fincas and villas in Campos, Porto Colom, Ses Salines, and Colonia San Jordi, as well as family homes in Sa Rápita and Es Trenc. High-quality, renovated townhouses are also popular. International investors made faster decisions to buy properties in the previous year—they don't want to wait once they
have found their dream property. Clients often search for a combination of timeless and modern features with traditional and authentic architecture. Sales are usually processed without financing. In 2021, some sales contracts were even signed following online viewings. The main reason why potential buyers look to purchase a second property here is the feeling of having a secure investment in a reliable holiday destination. Thanks to the new motorway between Llucmajor und Campos, the airport and the island’s capital, Palma, can be reached quickly and easily. One of the region’s new highlights is the awardwinning boutique hotel Can Ferrereta that attracts international visitors to Santanyi's lively town centre.
Location and Infrastructure
Popular Properties
Current Developments
Authentic coastal towns, like Portopetro, Cala Figuera, and Colonia San Jordi, stand out thanks to their Mediterranean flair and relaxed atmosphere. On the east coast, the bays and beaches are some of the most beautiful on the island, and the marina in Cala d’Or warms yacht-lovers’ hearts.
In the southeast, there is notable demand for townhouses with a pool as well as newly built fincas on the outskirts of town. Additionally, there is a higher level of interest in houses with rental licenses. Engel & Völkers Mallorca Southeast’s clients appreciate wellmaintained properties with Mallorcan architecture in particular.
Felanitx and Cala Figuera look forward to several changes and construction projects in the near future. These authentic places have a great deal of potential and are set to become even more attractive in the future. Colonia San Jordi, Ses Covetes, and Sa Rápita , which are located along the natural beach of Es Trenc, are also developing well.
Mallorca Southeast Residential Property Market | 32
Average Asking Prices - Houses Total Real Estate Market Mallorca Southeast Very good location
Top location
Good location
Average location
Simple location
Greenery
Water
Northeast
Central Southeast
Porreres
Felanitx Cala Murada Campos
South
Es Carritxo
S‘Horta
Portocolom
Calonge Alqueria Blanca
Cala D‘Or
Sa Ràpita Portopetro
Santanyí
Ses Salines Colonia San Jordi
Cala Figuera Cala Llombards
In the southeast of the island, asking prices for fincas and villas continue to be in the high-end segment and display a significant upward trend. For an average of 1.8 million euros, potential buyers can purchase their own home around Santanyí, Cala Llombards, Portopetro, or Portocolom. The same is true for the municipalities of Es Carritxo, Calonge, and S’Horta. In the southern coastal region near Sa Ràpita, Ses Salines, and Colonia San Jordi, the prices are between 1.5 and 1.75 million euros. Inland, around Campos and Porreres, houses are on the market for around 1.4 million euros. The investment prospects are considered to be very good in the southeast of Mallorca. Houses - Average Prices in Euro
2020
2021
> 1,650,000
Apartments - Average Prices in Euro
Trend
2020
2021
Trend
> 1,800,000
> 350,000
> 400,000
1,400,000 - 1,600,000
1,500,000 - 1,750,000
320,000 - 350,000
350,000 - 400,000
< 1,350,000
< 1,400,000
< 300,000
< 350,000
Apartments The prices for apartments in the southeast are also continuously rising in comparison to the previous years. The average sales price for an apartment in the coastal area between Cala Murada and Cala Llombards is around 400,000 euros. In the regions of Santanyí, Alqueria Blanca, Calonge, and Felanitx, it is possible to purchase an apartment for between 350,000 and 400,000 euros. The same applies to the southern coastal towns of Sa Ràpita, Ses Salines, and Colonia San Jordi. In Campos and Porreres, the average asking price is 350,000 euros.
Northeast
Central
Porreres Felanitx
South
Cala Murada
Campos Es Carritxo
Sa Ràpita Ses Salines Colonia San Jordi
S‘Horta
Calonge Alqueria Blanca Santanyí
Portocolom
Cala D‘Or Portopetro
Cala Figuera Cala Llombards
Source: Engel & Völkers Mallorca, Company Data
Mallorca Southeast Residential Property Market | 33
Mallorca South
Residential Property Market
S
ince the start of the pandemic, new buyers have been drawn to the island. Due to its excellent accessibility and stable prices, buyers appreciate the fact that Mallorca is a secure location for a real estate investment. Christina Deutsch, Managing Partner of Engel & Völkers Mallorca South 29 years on Mallorca and 19 years with Engel & Völkers
The south of the island boasts excellent connections to the capital, Palma, and features a stunning coastline. The region between Son Verí Nou and Cala Pi is impressive with spectacular views over the Bay of Palma. Here, potential buyers find exclusive properties on the seafront that represent good value for money. Some clients search specifically for properties with holiday rental licenses. The most popular coastal towns include Son Verí Nou, Cala Blava, Puig d’en Ros, and Cala Pi. Buyers who are interested in modern, newly built villas with high-quality features and a first-class sea view might find what they are looking for especially in the areas of Cala Pi and
Puig d'en Ros. Towards the island’s interior, Llucmajor’s traditional town centre stands out due to its varied range of shopping and large weekly market. Both in the island’s largest municipality as well as in the coastal region, demand continues to increase amongst buyers, who are mostly from Germany as well as France, Belgium, and the USA. Live viewings via video calls have proven to be a useful tool for potential buyers to gain a picture of their future home in advance— particularly for those from abroad. The marketing period is 6 to 12 months, although new-build projects are usually purchased more quickly. If buyers make use of financing, it is usually due to tax advantages.
Location and Infrastructure
Popular Properties
Current Developments
The island’s southern region provides first-rate infrastructure with excellent sports facilities, including three golf courses, and beautiful bays. Some of Mallorca’s most well-known beaches can be reached by car in a short amount of time. Further highlights include the luxury hotel Cap Rocat and the Mhares Sea Club, both with spectacular sea views.
Along the coast, there is great demand for newly built villas with a pool and sea views. The exclusive new-builds usually have extensive outdoor areas as well as high-tech features and offer a high degree of privacy. Villas in the first sea line and apartments in residential complexes are both in high demand.
There are currently several interesting construction projects underway that will come on the market in the near future. Year on year the quality is improving. In addition, the infrastructure in the southern part of Mallorca is continually developing.
Mallorca South Residential Property Market | 34
Average Asking Prices - Houses Total Real Estate Market Mallorca South Very good location
Top location
Good location
Average location
Simple location
Greenery
Water
Central
Palma
South
Son Verí Nou Cala Blava Llucmajor
Maioris Décima Puig d'en Ros Southeast Sa Torre Bahía Azul Bahía Grande Tolleric
S‘Estanyol Cala Pi
In comparison to the previous years, the average prices for a villa in the south of the island display considerable development: buyers can find properties in Son Verí Nou and Cala Blava starting at 2.5 million euros. In the neighbouring municipalities of Maioris Dècima and Puig d’en Ros, asking prices for houses are between 2 and 2.5 million euros. The rural region surrounding the largest municipality, Llucmajor, has also experienced very good development—here, average prices are around 2 million euros. The demand for townhouses continued to rise over the past year. Generally, further price increases are to be expected in the south. Houses - Average Prices in Euro
2020
2021
> 1,600,000
Apartments - Average Prices in Euro
Trend
2020
2021
> 2,500,000
> 480,000
> 550,000
1,400,000 - 1,600,000
2,000,000 - 2,500,000
330,000 - 350,000
400,000 - 550,000
< 1,400,000
< 2,000,000
< 330,000
< 400,000
Apartments
Central
Palma
The average prices for apartments demonstrated considerable development in the south of Mallorca in 2021. Apartments located in the prime locations of Son Verí Nou and Cala Blava cost around 550,000 euros. The price level in the immediately adjacent towns, such as Maioris Dècima and Puig d’en Ros, is between 400,000 and 550,000 euros. In Llucmajor itself, as well the other coastal towns, there are some properties on the market for less than 400,000 euros. The same applies for apartments as for houses: the prospects for the residential market are very good.
Trend
Son Verí Nou Cala Blava Llucmajor Maioris Décima Puig d'en Ros
South
Sa Torre Bahía Azul Bahía Grande Tolleric S‘Estanyol Cala Pi
Source: Engel & Völkers Mallorca, Company Data
Mallorca South Residential Property Market | 35
MALLORCA
Rentals The Balearic Island of Mallorca has long been, and continues to be, one of the most attractive property locations. Rental properties are ideal for getting to know the Mediterranean lifestyle and the island’s many advantages. Engel & Völkers Mallorca received a record number of enquiries in 2021 for both short-term and long-term rentals: in fact, the number of rental enquiries almost doubled in comparison to the previous year (2021: 3,186, 2020: 1,661). Longterm rentals are particularly interesting for those clients who wish to experience the island prior to buying a property. Over the past year, Engel & Völkers´ rental department has seen increased interest in rental properties with the option to buy.
1st Step
to your own Property A one-year tenancy is the first step towards your own property on Mallorca.
In addition, working remotely is having a significant impact on the rental market: as more and more people are now working from home, new and flexible working arrangements
are becoming increasingly interesting. Thanks to the high quality of life and outstanding infrastructure, including fast Internet connections, Mallorca also makes the ideal work base. Depending on features, size, and location, monthly rental prices for properties in the premium segment are between 1,000 and 4,000 euros for apartments, and between 2,000 and 18,000 euros for houses and villas. Following all the restrictions that were imposed during the pandemic, many families want to take a break from everyday life by spending some time in the sun and close to the sea, which has resulted in significantly increased interest in holiday accommodation in Mallorca. One of the reasons for this is that they have greater privacy in comparison to a hotel-based holiday and can better protect their own health. In 2021, clients were therefore prepared to pay more for a high-quality holiday home with a generous outdoor area than in the previous years. The weekly rental prices for holiday homes across the island are between 2,500 and 60,000 euros. This shows how lucrative holiday rental properties can be. Purchasing a property for one’s own use, that also has a rental licence, is therefore becoming increasingly popular. The positive trend in the rental property market in Mallorca shows that investors are more convinced than ever that they can rely on the “magic triangle” of security, liquidity, and return on investment.
Rentals Engel & Völkers Mallorca 60,000
25,000 Holiday rental in Euro / Week
Long-term rental in Euro / Month
40,000
20,000 15,000 10,000 8,000 6,000 4,000 2,000 0
Palma de Mallorca
Long-term rental – Houses
Palma Surroundings & Son Vida
Mallorca Central
Long-term rental – Apartments
Figure 10: Rentals – Engel & Völkers Mallorca, Company Data
Mallorca South
Mallorca North
Mallorca West
Mallorca Southwest
Holiday rental
Mallorca Rentals | 36
Mallorca West
Palma Surround. & Son Vida
Mallorca North
Sóller · Valldemossa · Deià
Son Vida · Esporles · Puigpunyent
Pollensa · Puerto de Pollensa · Puerto de Alcúdia
€€€€
Long-term rental Holiday rental
Holiday rentals continue to be very popular in this region during the peak season. Engel & Völkers offers rental houses in a price range of between 4,000 - 15,000 euros per week. Clients are usually from the Netherlands, Denmark, Great Britain, Germany, and the USA. Properties with large outdoor areas, including a pool and a sea view, are particularly sought after. In addition to short-term rentals, since 2021 Engel & Völkers offers long-term rental properties: the monthly cost for apartments is between 1,000 and 1,500 euros. Asking prices for houses are between 2,500 and 7,000 euros per month.
€€€€
Long-term rental Holiday rental
In this premium residential area of Mallorca, apartments are on the market for between 2,500 and 4,000 euros per month, and for houses Engel & Völkers can achieve rental yields of between 7,000 - 18,000 euros per month. Rental properties with first-class views and privacy are particularly popular. The quiet and safe environment, as well as the proximity to the centre of Palma, add to this region’s appeal.
€€€€
Long-term rental Holiday rental
In the north of Mallorca, Engel & Völkers offers long-term rental apartments between 1,000 and 3,000 and houses at 3,000 - 7,000 euros per month (holiday rental properties fetch between 2,500 - 10,000 euros per week). In the north, rental properties are popular with German, British, Spanish, and Swiss clients. Demand is high for villas located close to the beach that have a garden and pool.
Mallorca Central Santa Maria · Alaró · Montuïri · Bunyola
€€€€
Long-term rental Holiday rental
Mallorca Southwest Engel & Völkers Mallorca offers only longterm rental properties in the centre of the island. Apartments are available for between 1,500 and 2,500 euros, and houses for between 2,000 and 8,000 euros per month. The principal clients are German and Swiss together with a mix of various nationalities for rental periods of several months. Apartments in residential complexes are popular, along with houses with a pool.
Port Andratx · Santa Ponsa · Portals
€€€€
Long-term rental Holiday rental
In this region, Engel & Völkers recorded a substantial increase in rentals in the upper price range. Apartments are available for between 1,700 and 3,500 euros per month, and villas from 7,000 to 18,000 euros. Those clients interested in rental properties mainly come from Germany, but also from the Netherlands, Scandinavia, Great Britain, Italy, Spain, France, Poland, Saudi Arabia, and Switzerland. The year-round infrastructure, sophisticated service offering, and comprehensive health care have all contributed to the region’s highly international environment. The increasing level of interest is particularly associated with exclusive, high-quality holiday villas with a sea view. These are usually booked for short-term rental periods, and in the premium segment holiday homes cost between 40,000 - 60,000 euros per week.
Palma de Mallorca Old Town · Playa de Palma · Paseo Marítimo
€€€€
Long-term rental Holiday rental
In Palma, the demand for long-term rental properties reached a record level in 2021. Engel & Völkers’ clients, who mainly come from Germany, Austria, France, and Switzerland, are interested in high-quality apartments with a balcony or a terrace. The monthly prices are between approximately 1,400 and 2,900 euros.
Mallorca South Llucmajor · Cala Blava · Son Verí Nou
€€€€
Long-term rental Holiday rental
In the south of the island, Engel & Völkers offers long-term rental properties. Apartment prices are between 1,200 and 3,000 euros per month, and houses are priced between 2,000 and 7,000 euros per month.
Mallorca Rentals | 37
MISCELLANEOUS
Definitions & Sources Definitions International Buyers Non-resident and resident Foreign buyers (non-Spanish)
Transaction Volume / Sales Volume The gross figure for total sales transactions
Regions by Municipalities (According to MITMA) Palma de Mallorca Palma de Mallorca Palma Surroundings Esporles and Puigpunyent Mallorca Southwest Andratx and Calvià Mallorca South Llucmajor
Mallorca Southeast Campos, Felanitx, Porreres, Ses Salines and Santanyí
Mallorca West Banyalbufar, Deià, Estellencs, Fornalutx, Sóller and Valldemossa
Mallorca Northeast Artà, Capdepera, Manacor, Sant Llorenç des Cardassar and Son Servera
Mallorca Central Alaró, Algaida, Ariany, Binissalem, Bunyola, Consell, Costitx, Inca, Lloret de Vistalegre, Lloseta, Llubí, Mancor de la Vall, Maria de la Salut, Marratxí, Montuïri, Petra, Sant Joan, Santa Eugènia, Santa María del Camí, Selva, Sencelles, Sineu and Villafranca de Bonany
Mallorca North Alcudia, Búger, Campanet, Escorca, Muro, Sa Pobla, Pollença and Santa Margalida
Sources This market report has been compiled from market analyses based on different internal and external sources. Its aim is to present an overview of the real estate market in the Balearic region over the past years, with a focus on the premium sector of the market and, more specifically, on the main island of Mallorca, where Engel & Völkers has 19 property shops and is the market leader for international real estate with more than 30 years experience on the island. Internal sources include corporate data provided by Engel & Völkers. External sources include statistics published by the Spanish Ministry of Transport, Mobility and Urban Agenda (MITMA), the Euribor, an independent real estate market research company (Casafari
LLC), the Agency for Tourism Strategy in the Balearic Islands (AETIB), the Spanish National Statistical Institute (INE), the Statistical Institute in the Balearic Islands (IBESTAT), Sociedad de Tasación (an independent expert company for the valuation of properties and market analyses) as well as the world’s largest airport manager (AENA S.A.). The Spanish MITMA is responsible for Transport, Mobility and Urban Agenda. The statistics quoted in this report can be found on the government website (http://www. mitma.gob.es/). Euribor is the acronym for Euro Interbank Offered Rate and denotes the average interest rates at which a large panel of Eurozone banks borrow funds from one another (https://www.euribor-rates.eu/).
Casafari LLC monitors and tracks the entire real estate market and works with Engel & Völkers in the Balearic Islands. With the help of artificial intelligence techniques, the company identifies and matches the same properties from multiple sources to drive further analysis of market dynamics and source the best investment opportunities (https://www.casafari.com/). To determine the visitor nationalities on the Balearic Islands, the visitor data of the Agency for Tourism Strategy in the Balearic Islands (AETIB) has been analysed. Furthermore, to assess the contribution made by the real estate sector to the Balearic Gross Domestic Product (GDP), we have analysed data from the National Statistics Institute (INE).
Market Analysis With the aim of determining the average price of property listings in the regions, the real estate market dynamics and the property supply, the public listings of 768 real estate agencies in Mallorca were analysed from 1st of January until 30th of November 2021. The conditions for this analysis include
apartments starting from 200,000 euros asking price and houses starting from minimum 500,000 euros asking price, representing Mallorca’s second home prime market. Properties with a living area of less than 50 sqm and plots, commercial premises and investment opportunities were excluded.
For the market analysis, unique (matched) property values were compared; therefore, the same properties in multiple estate agencies were only counted once. In total, 19,114 flats and 14,539 houses were analysed by type and location with the help of Engel & Völkers Mallorca's specific market knowledge.
Miscellaneous Definitions & Sources | 38
MISCELLANEOUS
List of Figures and Tables Figure 1: Real Estate Transaction Volume – Total Market Balearic Islands ..............................................................06 Figure 2: Historical Development of Real Estate Prices on the Balearic Islands vs. Euribor....................................07 Figure 3: Property Supply 2021 in the Premium Segment – Mallorca ......................................................................11 Figure 4: Real Estate Market Dynamics 2021 – Engel & Völkers Mallorca..............................................................12 Figure 5: Real Estate Transaction Volume – Engel & Völkers Mallorca ...................................................................12 Figure 6: Buyer Nationality 2021 – Engel & Völkers Mallorca ................................................................................13 Figure 7: Flight Distance in Hours – Palma Airport ....................................................................................................... 13 Figure 8: New Construction Projects Started – Balearic Islands............................................................................... 16 Figure 9: Real Estate Transaction Volume – Total Market Palma de Mallorca .............................................................. 18 Figure 10: Rentals – Engel & Völkers Mallorca..........................................................................................................36 Table 1: Real Estate Market Development – Balearic Islands and Mallorca 2020-2021..............................................10
List of Maps Map Townhouse and Apartment Prices – Palma de Mallorca............................................................................................ 19 Map Houses and Apartment Prices – Palma Surroundings & Son Vida............................................................................. 21 Map Houses and Apartment Prices – Mallorca Southwest................................................................................................. 23 Map Houses and Apartment Prices – Mallorca West.......................................................................................................... 25 Map Houses and Apartment Prices – Mallorca North........................................................................................................ 27 Map Houses and Apartment Prices – Mallorca Northeast.................................................................................................. 29 Map Houses and Apartment Prices – Mallorca Central...................................................................................................... 31 Map Houses and Apartment Prices – Mallorca Southeast.................................................................................................. 33 Map Houses and Apartment Prices – Mallorca South........................................................................................................ 35
Miscellaneous List of Figures | List of Maps | 39
Imprint Publisher Engel & Völkers Balearic Islands BalearEV GmbH Sucursal en España C/ Isaac Peral, 50 07157 Port Andratx, Mallorca, Spain Tel. +34 971 23 85 84 www.engelvoelkers.com/mallorca Managing Director Florian Hofer Coordination Edina Rauschenberger Patrick Stengel Layout Ellen Grace Albers Follow us
Port Andratx, May 2022 Disclaimer All information has been compiled with the greatest possible care. We cannot accept any liability for the accuracy and completeness of this information. We shall not be held responsible for damage of any kind whatsoever incurred either directly or indirectly through the use of this information, with the exception of liability for intent or gross negligence. Last update of information and data published: May 2022. Duplication only with reference to source, source: Engel & Völkers Balearic Islands (BaleareEV GmbH Surcusal en España; Trade Register Palma de Mallorca, Hoja 65.121, Folio 219, Tomo 2.410).
Imprint | 40
www.engelvoelkers.com/mallorca