Majorcan property prices continue to climb

Photo: Alastair Montgomery

The broker's latest report reveals that the market's growth, which began last year, will continue throughout the next year.

Last year was a good year for the largest of the Balearic Islands - Majorca, Menorca and Ibiza - with Engel & Völkers brokering its highest number of properties in the prime property sector since it launched 15 years ago. That rise in sales was accompanied by a climb in values. Indeed, the highest price fetched from brokering a prestige home by the company was 10 million euros, while the average sales price for a coastal villa with five bedrooms was 5 million euros.

Activity is being driven by wealthy second home buyers. Indeed, according to the Spanish Association of Notaries, purchases by foreign buyers doubled in the Balearics in 2012 compared to 2008. Location, comfort and convenient connections are the priorities for buyers.

Engel & Völkers adds that competition for land plots in the resort of Puerto de Andratx is set to keep driving the market forward.

"This development shows that private owners and investors continue to place their trust in the value stability of the Majorcan property market. The overall stabilization of Spain's economy is also having a positive impact on the already high level of demand," David Scheffler, Managing Director of the Regional Office of Engel & Völkers in Spain, told World Property Channel.

"Good plots in Majorca's prime locations are becoming increasingly rare," added Scheffler. "Around 40 percent of the island is designated as a nature protection area, whilst the entire island is subject to very strict building regulations."