Porta Mallorquina Real Estate presents a new market study
AROUND 30 PERCENT PRICE INCREASE FOR MALLORCA PROPERTIES IN FIVE YEARS
Despite the slump in the number of tourists, prices for holiday properties have remained largely stable since the pandemic began.
PALMA DE MALLORCA, 12.05.2021
- Significant increase in value in five years
- Mallorca Property Price comparison 2021
- Sporadic emergency sales by locals
- Typical Mallorca holiday home costs on average almost 1 million euros
- Finca home-office in Mallorca instead of a desk at home
Significant increase in value in five years
An independent market study commissioned by the real estate company Porta Mallorquina Real Estate showed significant increases in value for the Mallorca real estate market over the course of five years.
On average the prices for island properties rose by 27.2 percent, the market researchers recorded the highest rate of increase with 42.1 percent in the city of Palma, followed by the south-west where holiday properties now cost 37.8 percent more than five years ago. Well-equipped properties in good locations now cost over 6,100 euros per square metre in the capital, and over 6,800 euros on average in the south-west.
Third place, with a good 30 per cent price increase is occupied by the southern region. In contrast to the top locations of Palma and the south-west, however, the average prices of just under 4,000 euros per square metre are still well below the island average, which the market researchers determined at just over 5,000 euros.
Porta Mallorquina Real Estate Manager Timo Weibel is not surprised by the result: "Palma has developed from a sleepy provincial town into a European hotspot over the last ten years." Investors preferred to buy in the old town, but in the meantime the supply of luxury redevelopment projects is scarce, as Weibel knows. For the future he does not yet see an end to the appreciation potential in the top regions of Palma and the south-west in the long term. "Top locations on Mallorca are limited, and buyers are not necessarily concerned only with returns but also with quality of life, and for that they are prepared to spend a lot of money."
Study director Prof. Marco Wölfle also sees no signs of a bubble forming in individual regions. "The historical development of values shows that even investment in high-price areas can be worthwhile, as the demand potential here is significantly higher than in regions which are less attractive for tourists. Favourable entry prices continue to be offered in the centre of the island, which is traditionally cheaper than coastal regions due to the longer distances to the sea.
Mallorca Real Estate Price Comparison 2021
Despite considerable travel restrictions due to the Corona pandemic and a slump in tourist numbers, the holiday property market on Mallorca presents itself as largely stable in the first quarter of 2021. At a good 5,000 euros per square metre, the market researchers determined almost exactly the same square metre price throughout the island, as at the beginning of 2020.
Prof. Wölfle justifies slight shifts in the individual regions with a changed supply structure: "In the regions with price reductions, we were able to determine an increase in both simply- and moderately-equipped properties compared to the previous year."
Isolated distress sales by locals
For Timo Weibel, these are the first effects of the Corona pandemic which has hit the local economy hard: "Properties in the simple or medium categories are often owned by locals, and we have already noted some distress sales."
Mallorca is dependent on tourism - around 75 per cent of its economic performance is directly or indirectly related to tourism. With Corona, the Balearics are experiencing an unprecedented crisis surpassing even the impact of the 2009 finance and property crisis. In March 2021 the Ministry of Labour reported around 85,000 unemployed, an increase of over 45 per cent.
Typical Mallorca holiday home costs just under 1 million euros on average
A good 4,500 holiday properties are currently on offer by the major estate agents in Mallorca. A corresponding data analysis showed that the 'typical holiday property' in Mallorca has four bedrooms, three bathrooms and a pool and, depending on the region, currently costs between ? 650,000 and ? 1,500,000, with an island average of around ? 995,000.
The classic holiday home, however, is somewhat smaller with two bedrooms and two bathrooms. Here, a square metre costs between ?2,720 and ?4,230, with an average of ?3,270. Depending on the region an average apartment costs between ?235,000 and ?450,000, an average of ?320,000 island wide.
Those who also value a sea view or are even looking for a first-line location will have to pay significant surcharges, the amount of which depends on the region. Island-wide the premium for properties situated directly by the sea is 75 percent. Another price factor is the age of the Property. Compared to existing properties, new constructions cost an average 42 percent surcharge.
Finca home-office in Mallorca instead of the desk at home
For the current year market researchers foresee at least a further stabilisation of prices, depending on how the pandemic progresses. Timo Weibel can even imagine increases in prices in certain regions: "There is currently an absolute run-on Mallorca real estate. As soon as flights became available again customers started flying in and are even more determined to buy than ever before." For him, the pandemic has changed people's self-image: "Many are saying to themselves, if not now, when." Added to that many people not only want to spend their holidays here in safety but are also looking for a "finca home-office" as an alternative to a desk in their home country.
Independent market study Mallorca
Porta Mallorquina Real Estate presents the 7th. edition of the annual market study "Holiday Property Market Mallorca". Since 2015, the Freiburg-based market research institute Center for Real Estate Studies (CRES) has been examining the market for holiday properties in Mallorca on behalf of the real estate company.
The results of the independent and representative market analysis are available for download at https://www.porta-mallorquina.de.
Press contact, interview, and picture requests:
Porta Mallorquina Real Estate S.L.U.
Member of Homes & Holiday Group
Theresienstrasse 21, 80333 Munich, Germany
Press spokeswoman: Ulrike Eschenbecher
Tel. +49 (0) 171 / 753 26 10, email@example.com
About Porta Mallorquina and Homes & Holiday
Porta Mallorquina Real Estate S.L. was founded in 2005 and is a subsidiary of the listed Homes & Holiday AG (ISIN: DE000A2GS5M9). Together with its sister company, Porta Holiday, Porta Mallorquina Real Estate offers real estate purchase, long-term rentals, and holiday rentals from a single source.
With eight locations in Mallorca and a portfolio of more than 2,000 properties, Porta Mallorquina is one of the largest real estate companies on the island. The multilingual real estate website is the leading real estate agency website for Mallorca properties. In Mallorca, Porta Mallorquina grants franchise licences to independent real estate entrepreneurs.
More information: https://www.porta-mallorquina.de/ and
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Emittent/Herausgeber: Homes & Holiday AG
|Unternehmen:||Homes & Holiday AG|
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|Börsen:||Freiverkehr in Berlin, Düsseldorf, Frankfurt, München (m:access)|
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