Property Prices Mallorca 2015

A stonger property market Mallorca, an engouraging and exciting 2016 awaits


  • Strong GBP
  • Under Valued Property Mallorca
  • Cooling off period due to recession
  • Shortfall in property stock Mallorca
  • Stonger European buyers market
  • Golden Visa influences Asian market
  • London 2nd home buyer pushing price up
  • Fantastic investment properties

An Update on Mallorcan Property Prices

The days of Mallorca’s boom period back where house prices were at an all time high and many new properties were springing up, although the island’s skylines were not as dominated by cranes and construction as that of the mainland, were surprisingly almost ten years ago now, and the island’s property market has been through alot in the meantime. The recession significantly slowed the market and negatively affected property sales. By the end of 2009, statistics showed the sale of apartments had dropped by 36% from 2008 and house prices were down by up to 20%.

For Spain as a whole, transactions for the first five months of 2015 were 188,000, that’s a 7.9% increase from the same period last year according to the Association of Notaries. Although staying steady for some time, the price of housing in Spain is now, slowly, starting to rise too, with the Association of Property Registrars reporting a 5.1% increase year on year in 2015’s second quarter. This rise however is much governed by location, there appears to be a two tier market with prices rising in some areas and staying stable or even falling in others. It is a number of niche Spanish markets that are leading the way to recovery, Mallorca and the Balearics being one of the most prominent.

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*Hover over map for average house prices by region, as of August 2015

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Five of the top ten areas of Spain with the most expensive house prices are in the Balearics, being (with average Euros per square meter); Calvia (€2,520), Andratx (€2,422), Alcudia (€2,410), Soller (€1,984) and Santanyi (€1,972). In July 2015 the Spanish Institute for Statistics released figures stating that purchases in the Balearic Islands had the biggest increase in Spain of 37.4% compared to last year.

It’s a well established fact that Mallorca attracts many foreign buyers, due to the stunning natural landscape, quality and size of property available and, despite rising prices, relative affordability. 95% of buyers, according to Tinsa, are foreign, mainly from the UK, Germany and Scandinavia. The luxury end of the market, particularly in the most desirable areas of Mallorca, is where we’re seeing prices rising most significantly. However, even the wealthy are still getting a great deal in Mallorca, as in terms of valuation Mallorca came in as only 11th in the world, with a new record sales figure of €27,000 per square metre for a villa in Port Andratx. Compare that to New York at €120,000, London at €150,000 or Hong Kong at €190,000 per square metre, and you have great value for money! With everything suggesting that the rich are just getting richer, there’s no reason why these top end values couldn't continue to rise for Mallorca.

However, those of more modest budgets shouldn’t be put off the island either. Eventually, the banks are both more able and willing to lend again, even becoming more competitive to offer the best deals. There are also signs of recovery in the new build market, targeted very much to the second home buyer.

Finally, it’s also worth mentioning that the market for land sales, which has been inactive for many years now is also slowly picking up too. Jose Antonio Lopez the Balearic Tinsa Director explained recently that "the land market is moving mainly due to investment funds arriving”.

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