Sales Go Upmarket In Mallorca
Mallorca’s appeal to luxury property investors has shown a marked increase with a 38% year-on-year rise in sales of real estate ranging in price from 1-38 million euros. The most popular area with wealthy buyers remains the exclusive Port d’Andratx and Camp de Mar region, with its designer shops, gourmet restaurants, golf course and yachting marina. The trend is extending throughout the island, however, as enhancements to amenities and facilities attract high-fliers to areas such as: Cala Major, Portixol and Cap de Formentor where the average property price is 6 million euros.
The capital, Palma, has always been much soughtafter by the rich and famous, but, with improvements to infrastructure, island-wide, and a major shift toward upmarket tourism, luxury properties all over the island are now rapidly being snapped up. Always regarded as a safe, family friendly island, Mallorca has succeeded in updating its profile to include something for everyone. Environmentally aware and with a firm grip on sustanability of its 31 blue flag beaches, even the most modest investment in property for rental is almost certain to prove highly lucrative, so investors with a smaller budget should not be deterred. Holiday bookings for 2017 show a bumper year ahead resulting in visitors looking beyond commercial hotels to private apartments and villas.
It would seem that the island can now claim its place amongst the most desirable destinations in the world.
Article 50 – The Facts So Far
Last month saw the triggering of article 50 and the UK’s exit from the European Union began its two-year-long journey. To attempt an analysis of the effect Britain’s departure will have on the Balearic property market, it is useful to consider events that have shaped changes since June 24th 2016 when the result of the UK referendum sparked speculation over its consequences. Brexit has, undoubtedly reduced the buying power of British citizens, but has done little to dampen their enthusiasm for foreign property investment, and, with sterling stabilised at approx 1.19, the outcome has not proved as disastrous as, at first, feared.
There is still an appetite amongst the British to purchase property overseas and despite being hit by a reduction in spending power amounting to approximately 10%, Britains remain undeterred and are simply shifting their expectations regarding the location and size of property they seek. This could be good news for resorts such as: Murcia and Almeria where the market has not experienced the same, huge bounce back in prices as the islands and upmarket resorts like Marbella. Currently there are more than a quarter of a million UK, Spanish residents, of which 90% live in the Balearics, Canary Islands and mainland coastal resorts.
One in every five Spanish properties sold to foreign buyers have traditionally been bought by UK nationals, a fact that unavoidably has caused ripples in the market, however, agents have been looking to other European nations to make up the defecit, particularly where the luxury market is concerned. Purchase of high-end property has seen a sharp rise throughout Spain and certainly in the Balearic islands where demand for luxury accommodation is expected to outstrip supply for some years to come.