While the market on the Spanish costas remains repressed due to oversupply, the downturn has not been as severe in Mallorca, according to local agents Cluttons Mallorca. Thanks to increasingly stringent planning regulations, strict local authorities and tight limits on population growth have all combined to keep supply down and demand high.
‘According to API sources (the professional body of Spanish estate agents), the city of Palma and the surrounding areas have seen an average 100% increase in property values over the past five years. In 2006, this increase was between 13% and 18%.
‘At present, there is a strong demand for the old part of Palma called the Casco Antigua as well as areas such as Santa Catalina, Portixol and El Molinar. Refurbishment of historic buildings by local and foreign developers has created a new luxury market with converted apartments fetching up to € 14,000/sq m. The outskirts of Palma comprise some of the most sought after residential areas of the island. For the discerning property buyer, Son Vida offers luxurious villas with prices to match. A six bedroom villa with sea and golf views will fetch upwards of €5,000,000.’
Places to look out for in Mallorca
The extension of Puerto Adriano in Santa Ponsa which is already pushing prices up.
The relatively unspoilt east coast of Mallorca which is attracting increasing interest from shrewd investors. Prices are not as high but improvements in roads have reduced the drive time from Palma which had previously maintained the area beyond the comfortable reaches of investors.
The mountain villages of Deya and Valldemossa while politicians declared increasing parts of it as restricted or protected areas. Outstanding properties in this area have recently been known to sell for around € 15,000,000.
Campanet or Sa Pobla are interior towns within easy reach of the coast but where prices are cheaper than in the more established Pollensa.
Meanwhile, Engel & Volkers are selling a penthouse in Palma on behalf of an English client which has four bedrooms and a terrace of 70 sqm for EUR 965,000. Contact Engel & Volkers Palma: +34 971 21 41 40.