Booming balearics set for rush of winter sales

Photo: Overdaforest

Engel & Völkers, which has 19 officers located throughout The Balearic Islands, enjoyed a strong summer of property sales in 2014 compared to 2013, with the Spanish National Statistics Office indicating an upturn in sales for the month of August in this region.

In Mallorca, demand for property over 1M Euros continues the trend with the average spend ranging from just under 1MEuros in the north to 1.9M Euros in the south west representing a 27 per cent rise over the average spend in 2013. Indeed, one sea front villa in Puerto Andratx fetched a price of 27,000 Euros m2, a new record high.

Throughout the island there is more market movement as mainly cash buyers make decisions faster, encouraged by the stable real estate market conditions with price increases for exceptional sea frontline property. The apartment market is moving once more and there is now greater demand for plots.

Second home buyers are mainly British (encouraged by stronger sterling), German speaking and Scandinavian. Spain's Golden Visa legislation has had little impact on sales from non EU buyers although this summer there has been more interest from America, Canada and Australia.

In Ibiza, sales have been on a par with last year. However, the average spend has increased from 1M Euros to approximately 1.2M Euros, as price increases (limited to the upper market segment) are primarily driven by shrinking supply.

Ibiza continues to attract an international mix of top buyers with demand from non European buyers increasing, particularly from the USA.  However, the main buying market remains European with an increase in British buyers. E&V again regards the island's exposure and promotion worldwide as the main factor in attracting international buyers rather than the introduction of Spain's Golden Visa, which it says "has produced little interest".

In Menorca, sales are up by almost 10 per cent over this time last year. Prime sea front properties are in demand, particularly those with their own moorings. Menorca's rigorous environmental and strict planning regulations help create strong demand for top properties which are increasingly hard to find, with French buyers dominating the market.

"Prospects for the year end remain positive," says the agent, with more sales expected to close at the notary over the Christmas/New Year period.