The international real estate brand has released its sales figures and analysis for last year, showing a record of a 35% increase in sales volume in the Balearics for a total of 634 M Euros, marking an uptick in the average sale price of properties.
According to the Ministerio de Fomento, total sales transaction volume in the Balearics increased in 2017 by 26% to 4.5 B Euros. The number of sales also increased by 20% compared to 2016 to just under 15,000 sales, with transaction volumes expected to continue increasing to 22%.
Rentals also boomed in the Palma area, with a majority of prospective buyers choosing to rent for a year before making the big step. Average long-term rental prices per month in the Palma area currently range between 1,500 and 2,000 Euros per month, mostly untouched by the tightening of short-term rental regulations introduced last year.
The Managing Director of Engel & Völkers in the Balearics, Florian Hofer, attributed the continued rise to “the islands’ excellent connections, first-rate infrastructure and services, political stability and the wonderful climate we all love.”
It is a seller’s market in Mallorca this year, with demand for properties setting record prices, particularly in Palma, according to Engel & Volkers. […] Europe’s hotspot for secondary residences
Indeed these characteristics have attracted a large number of investors from abroad: the data shows foreign buyers acquired houses for a total of nearly 2 B Euros in the Balearics as a whole while the total transactions by non-Spanish buyers on the islands has tripled since 2007.
Engel & Völkers Mallorca, which has 17 offices on the island, reported total sales of Mallorcan real estate at 562 M Euros, accounting for the grand majority of sales in the Balearics and a huge increase compared to the 403 M Euros in 2016 (within Mallorca only).
On buyers, Mr. Hofer said that “as well as traditional buyers from German-speaking countries, the UK and Scandinavia, increasing numbers of Spaniards are seeking a high value home on the island. We believe this to be a clear signal of a healthy market in which many of the properties sold are financed using buyers’ own funds.” Indeed, the report points out that ever more buyers, foreign and not, are turning to Spanish mortgages and the fiscal advantages they offer.
The next trend, according to the report, will be to meet demand for specific real estate both on Mallorca and her sister islands: “The challenge is to find more quality apartments and “pied-à-tierre” properties in (Palma) to fulfil demand and this trend is also evident on the sister islands of Menorca, in the capital towns of both Ciutadella and Mahón and in Ibiza Town and its Old Town of Dalt Vila.”
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