PALMA, Mallorca – For the second time scientists of the Center for Real Estate Studies (CRES), on behalf of real estate agency Porta Mallorquina Real Estate, have studied the holiday property market in Mallorca. A total of around 4,800 real estate offers from the largest brokerage firms on the island were analyzed in terms of location, price and amenities.
It is noticeable that in 2016 the share of luxury, sophisticatedly equipped real estate increased significantly island-wide by 7%. In the field of luxury real estate the south-west leads the hit list. Around 15% of the offers there were classified by the scientists as luxurious, a classification roughly corresponding to the 5 star category in the hotel sector. Second place with 12% of the luxury share was the region around Palma.
For Porta Mallorquina CEO Joachim Semrau the result was not surprising: “The region around Palma has developed a new face. The high demand for quality properties in close proximity to the capital is increasingly in the northern and eastern border communities such as Sa Cabaneta and Puntiró.”
The high percentage of luxury properties is reflected in the average square metre price. In the southwest a square metre costs on average 5,150 Euros, around 2% more than last year, and there are similar inflation rates in the city of Palma and the area surrounding the capital. In the centre of the island, in the south-east and in the north-west average prices fell in some cases by up to 4% due to the larger number of offers.
Thus, the Mallorcan noble areas of Puerto Andratx, Santa Ponsa, Bendinat and Puerto Portals are the only regions on the island with average prices over the 5,000 euro mark. Cheapest region is, as in the previous year, the south with an average of 2,960 euros per square meter.
A good price indicator for investors is the coveted sea view, which itself causes markups of up to 50% on the purchase price, but pays off in the long-term value. In all regions, the price per square metre of real estate with the desirable views of the Mediterranean increased. According to the study director Professor Dr. Wölfle all regions in Mallorca currently provide ideal entry conditions for investors.