Mallorcan Property Market
The property market in Mallorca
Mallorcan property values and the property market in Mallorca is buoyant right now due to its increasing appeal. So this blog is largely for those curious about buying and selling property in Mallorca and the respective property prices in Mallorca. So, before we get in to the facts and figures let’s touch briefly on ‘why Mallorca?’. Mallorca is especially well known for its white sandy beaches and Mediterranean climate. Additionally it provides a great balance of quality of life, beautiful scenery and urban lifestyle. Furthermore, Mallorca offers cultural experiences and a great variety of architectural jewels across the island. Tour the countryside, especially around the Tramuntana mountain range and you will come across many. Most of them located in the midst of almond, carob and/or olive groves. Some of the most expensive locations in Mallorca are in this region.
Although small, Mallorca is an island that has a diverse geology. Therefore, their geographical location on the island influences the architectural styles of properties. For example, in mountainous villages like Soller and Valldemossa, there is an abundance of rocks. As a result you will see the use of solid stone to build houses. While, Santany and Campos; also in the South is an area of sandstone. Consequently, you will tend to see more houses built more out of sandstone.
Property Prices in Mallorca
A gauge for property prices in Mallorca for those buying and selling property in Mallorca.
|PONENT / TRAMUNTANA SUD (SOUTH) 3,998€/M2|
|TRAMUNTANA CENTRAL & NORD (NORTH) 3,175€/M2|
|PALMA & MARRATXI 2,958€/m²|
|MIGJORN 2,497 €/m²|
|NORD (NORTH) 2,247 €/m²|
|LLEVANT 2,146 €/m²|
|RAIGUER SUD (SOUTH) & NORD (NORTH) 2,051 €/m²|
|PLA 1,836 €/m²|
Growth in Mallorcan property values
For those curious about buying and selling property in Mallorca, growth in property values are important to monitor.
Despite 10 long years of European-wide economic crisis, the property market in Mallorca is recovering. So, the short-term lets market continues its steady growth. On one hand this is heavily influenced by high demand from tourists during the summer. On the other hand investors are buying property to let.
The property market in Mallorca is heavily influenced by the demand from foreign investors. Investment comes mainly from the UK, Germany and Sweden who often don’t need a mortgage. Nevertheless, according to the Spanish Statistical Office September 2017 saw 875 mortgage signatures. This was a decrease of 6.6% following the previous year. However, the value of these mortgages was 162,7 million euros, representing a 41.6% value increase.
Most expensive locations in Mallorca
|Port d’Andratx||6,395 €/m²|
|Costa d’en blanes||5,439 €/m²|
|Camp de Mar||5,313 €/m²|
|Portals Nous||4,885 €/m²|
|Casco antiguo||4,476 €/m²|
|Santa Catalina-Es Jonquet||4,227 €/m²|
Port d’Andratx, Andratx 6,395 €/ m²
Top of the table of most expensive locations is Port d’Andratx. Basically this is a natural harbour located in South-west part of Mallorca. This port village was formerly an old fishermen’s refuge. Since then it has become one of the most exclusive hotspots in the Mediterranean. Just like Camp de Mar, this area is popular with Germans buying and selling property in Mallorca.
Bendinat, Calviá. 5,778 €/ m²
Most of all, first-line – sea view properties in this area are hard to find. So, most properties found in this area are separate villas on big plots. It’s important to realise that the whole area near Hotel Bendinat is “old Bendinat”. It’s considered one of the most expensive locations in Mallorca and probably the whole Mediterranean. Bendinat is somewhat secluded but its near Puerto Portals and has nice small beach coves. Finally it also has one of the nicest golf courses on the island.
Costa d’en Blanes, Calviá. 5,439 €/m²
This village is chiefly luxury villas overlooking the bay of Palmanova. Costa d’en Blanes is a luxury urbanisation and close to the exclusive Puerto Portals. Consequently, also having easy access to the lively village of Portals Nous. Another key point is its location is just out of the main Palma-Andratx highway. Properties away from the noisy highway and with good sea views can be expensive. Therefore Calvia is one of the most expensive locations in Mallorca
Deia 5,227 €/m²
In the Tramuntana region, this is evidently, one of the most beautiful villages in Mallorca. The charming stone houses, landscape and its coastline make it very desirable and one of the most expensive locations in Mallorca.
Portixol 4,690 €/m²
Portitxol, Palma de Mallorca.
As an illustration, first-line property prices in this area are between 15,000 – 20,000 €/m². Evidently, this is one of the first areas in Palma foreign investors found. It was formerly a humble harbour with townhouses mainly used in the summer by locals. Since then it has become one of the chicest neighbourhoods in Palma. In addition it is of course on the list of most expensive locations in Mallorca. However, In spite of that it has maintained its picturesque and pleasant atmosphere.
Casco Antiguo, Palma de Mallorca 4,476 €/m²
All in all Palma’s old city centre is a very popular area for investors. In recent years, many Swedes have been buying here and in other districts of Palma. As a result causing property prices to increase sharply.
Santa Catalina, Palma de Mallorca 4,227 €/m²
Santa Catalina has also been very popular in recent years amongst buyers from Sweden. The market, main sea boulevard, its many small cafes and restaurants make it a hotspot.
Demand and supply for properties in Mallorca
Properties in the highest demand are luxury penthouses located in comparatively privileged positions. For example, first-line properties and properties with unobstructed sea views. However, in some areas supply can’t meet demand. Therefore buyers and investors are buying in the second and third line from the sea.
New build property market in Mallorca
Many developments that during the crisis years were stagnant are since being reactivated. There are also new development projects in the municipalities of Palma, Calviá and Andratx. These are evidently the most active areas for buying and selling property in Mallorca
The new build properties market in Mallorca is mainly driven by foreign investment. Most popular are apartments with an average floor space between 100 and 150 m². Then there are semi-detached houses of 200-250 m² and detached country houses around 500 m².
However, There are not many empty building plots being sold. During crisis years many plots were seized by the bank and are still being retained.
Buying and selling property in Mallorca
It’s important to realise when buying and selling property in Mallorca there are costs on both sides. Many of these costs depend on the property’s municipality and on the agreed contract terms.
In municipalities like Calviá and Andratx properties are more expensive. In those areas,the costs and taxes for buying and selling property in Mallorca are comparatively high. Taxes are generally higher due to the appreciation of the property and land.Unless you understand the paperwork for taxes and costs, employ a solicitor or gestoria.
Presently, the costs of transferring a property in Mallorca are markedly the average of Spain. So, the biggest cost for the buyer is the property transfer tax. This basically depends on the value of the property:
- 8% for properties under 400.000 €
- 9% for properties between 400.000 € and 600.000 €
- 10% for properties of more than 600.000 €
For the seller normally the biggest costs are the:
- Capital gains tax
- The agency commission, which in Mallorca averages 5%
Many of these costs are tax deductible, so ensure you discuss this with a solicitor.