Due to the fact that Mallorca did not have an overabundance of new facilities under construction, as on the coasts of mainland Spain, there were virtually no speculative deals. Real estate on this island is bought more for own use, rather than for investment. New construction here is limited, so the market is dominated by secondary properties. According to the Spanish Ministry of Economy, the Balearic Islands may become one of the first provinces in the country, which will come out of the crisis. To date, prices here have decreased on average by about 30-35% since the peak of the real estate market. Objects whose prices are now inflated and do not correspond to the current market situation, are not popular, as here now reigns the buyer’s market.
According to the Spanish real estate portal, in the second quarter of 2013, the average cost of real estate in Mallorca was 451,000 euros – this is lower than the total in the Balearics, but almost twice as high as the average in Spain, where the average price of the object now was 220,000 euros. At the peak of the real estate market, real estate in Mallorca on average cost 525,000 euros. The real estate market on the island has not yet reached the bottom, but demand is now growing and the downturn has slowed down overall. Mallorca’s housing market recovery rate lags behind Ibiza.
In June 2013, sales on the island fell by 10%, but prices have remained almost the same. The average price for a one-bedroom apartment on the island in the second quarter of 2013 was 164 000 euros, with two – 285 000 euros, with three – 450 000 euros, a four-bedroom house – 878 000 euros, with five – 1.493 million euros. In the old town of Palma de Mallorca, an average property can be bought for about €500,000, while in the northwest of the island – for 700,000 euros, in the southwest and south-east the average value of the object is 1 million euros. In the southwest, especially in the area of Puerto de Andratx with its luxurious golf courses and marina, the price per square meter can reach up to 22,000 euros.
There are two types of buyers in Mallorca – foreigners and locals. Foreign buyers, as a rule, buy luxury housing on the coast of Mallorca and live here from April to October or use real estate for permanent residence. Locals buy here economy class housing for their own use, while the location near the sea for them to be unprincipled. About 50% of all transactions in the housing market are made by the Germans, Swiss and Austrians, followed by the British, Scandinavians and French. It is expected that prices in 2020 will remain at the level of the previous year. Also, experts predict an increase in the number of deals with luxury objects, as such objects are more and more often appear on the market with discounts.
How to get there
The easiest way to get to Mallorca is by plane. The island has its own airport and many countries have air connections with Mallorca. In addition, there are regular flights to Mallorca from the Spanish mainland and European cities. For example, you can fly from Barcelona to Palma de Mallorca in half an hour, this route has about four flights per day throughout the year. There is a ferry service on Spain’s Mediterranean coast, which connects the country’s coastal cities with the Balearic Islands, including Mallorca. Ferries from Barcelona, Valencia, Malaga and Tarragona reach the port of Palma de Mallorca. Ferries from Mallorca to Ibiza and Menorca can be reached in two hours.
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