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Mallorca May Well Be the Hottest Property Market in Spain in 2017


Mallorca May Well Be the Hottest Property Market in Spain in 2017

 It’s not a bad time to sell your villa in Mallorca, Spain online as there is a real demand for properties here. Why not, Mallorca has emerged as a popular tourist destination, attracting 15 million foreign visitors last year. 2017 is expected to be even better.

Mallorca is often compared to Ibiza, but here the property prices have shot up across the board, in double digits, consistently for many years. It certainly fares well in comparison to other overseas property destinations such as Turkey, Tunisia and Egypt.

“There has been a very strong return of activity, which started to bear fruit in 2014, and the last 12 months have been pretty frenetic,” says Mark Harvey, who heads Knight Frank in Spain in an interview with the Financial Times. He adds, “I would probably err on the side of caution than be bullish. I’d say the second-home market is relatively safe, but we’ve yet to understand what the ramifications of Brexit are. . . I don’t think we want to be under any illusions that this is going to be plain sailing.”

 The biggest buyers of properties in Mallorca are Britons, Germans and Scandinavians. The demand from German buyers for holiday homes in Mallorca is insane – real estate observers have never seen anything like this before.

This brings back memories of 2015, when British buyers were particularly active here, buying hundreds of properties. The British interest has cooled down slightly, obviously because of Brexit. It has declined since the June 23 vote and remained tepid even after the invocation of Article 50 by Prime Minister Theresa May. The pound sterling has recovered some of its value in recent months, but that hasn’t led to a jump in buying activity from the Britons here.

However, Mallorca-based lawyer Will Besga has a different opinion. He insists, “Brexit hasn’t slowed the demand from British buyers; on the contrary, it seems to have so far produced the opposite effect, as having a base in a safe European country like Spain, and particularly Mallorca, is very attractive.”  That is a fair point.

Julian Cunningham-Bond, who works for a high-end buying agency, explains why it makes great sense from an investment point of view to buy property in Mallorca, Spain online - a limited supply of land, limited number of homes for sale and strict planning rules. Over 40 percent of the island is protected.

So this low supply of housing stock pushes up the price of an average property for sale in Mallorca, Spain.  “To build an apartment complex in a Grade A location is hard if not impossible. One doesn’t have to be concerned about a developer building another 150 properties down the road,” Mr. Cunningham-Bond says.

Security is one big reason why Mallorca is so popular. While the nearby North African tourist market struggles under the weight of extremism, political turbulence and terrorist attacks, Mallorca and Spain serve as a strong contrast. Foreign investors feel safe and protected here, and don’t mind investing millions in properties in Mallorca.

 

 




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