Engel & Völkers Mallorca has experienced a 25% increase in sales in the 12 months to the end of November, reaching €300m.
A spokesperson for the firm, Hans Lenz, comments: “As a group, Engel & Völkers Mallorca envisages continued interest for property from overseas in 2016, fuelled by strong currencies outside of the euro, the increasing appeal of the island and the desire to own a place in the sun that is safe, secure and easily accessible.”1
Prime property sales in popular spots are rising by up to 15% per year, after the warmest summer on record, reports Engel & Völkers, which has 16 offices across Mallorca and 2,500 properties on its books.
Additionally, the firm is expecting a surge in sales over the festive period, as prospective buyers return to complete on properties they saw in the summer.
The most active foreign buyers in Mallorca are German, British and Scandinavian, pushing the market value up to €921m for January-November 2015, according to data from the Balearic Government Tax Office.
This year, hotspots have been coastal locations, such as Puerto Andratx, Son Vida – the exclusive residential estate where Engel & Völkers has doubled sales in 2015. The area has become increasingly popular with wealthy families that wish to be close to international schools and facilities.
A boost to the island’s capital along the Paseo Maritimo, the market area of Santa Catalina, Old Town Palma and the old fishing port of Portixol, has caused an increase in price per square metre by around 10%, particularly for property with outside space and views.
In Mallorca’s inland rural spots, sales have risen by 50% this year, and some of the priciest sales on the island have been in this region. Buyers have been seeking luxury estates with plenty of land that offers privacy and space with views across the Sierra Tramuntana Mountains.
Increased confidence in Mallorca’s property market has boomed recently, with demand to buy off-plan seafront developments exceeding supply. In 2016, three new projects are set to come onto the market in Mallorca’s southwest region.
Several developments in Palma Old Town, Son Vida and Cala Pi are also set for construction next year.
Areas to consider for 2016 include the outskirts of Sóller and the charming village of Fornalutx in the west. Seafront property is still good value in Canyamel in the northeast and Campanet in the north offers stunning views across the mountains.
In the southeast, the traditional seaside resort of Cala D’or is going upmarket and attracting overseas buyers seeking seafront villas with private sea access (prices start at €1.5m) or properties out of the resort with distant sea views.