For the last ten years Mallorca’s real estate market has enjoyed ongoing success. Not only does the island attract a robust national Spanish market but also an excellent range of international buyers. The British and Germans have traditionally dominated the market, however, lots of Scandinavians have purchased properties in the island lately, as well as Russians and Chinese. The so-called Golden Visa plays an important factor in the increased number of purchases by buyers from overseas. This type of visa guarantees non-EU citizens permanent right of residence in Spain if they purchase a property priced at 500,000 Euros or more. Mallorca, with its wide offer of exclusive properties and great climate, profits exceptionally well from the Golden Visa arrangement.
From an investment point of view, luxury sea front locations and traditional “finca” style homes or vilas remain an excellent opportunity. For the third year in a row property prices on the island are on the up and fast-approaching the level of the 2006 and 2007 boom years.
According to the Center of Real Estate Studies, in 2017 the average square meter price has risen from 3,530€ in the previous year to 4,070€. The average square meter price in the south-west region rose from 5,150€ to 5,800€, an increase of 13% compared to the previous year. When focusing on top luxury properties in Mallorca, purchasers must expect to pay around 8,000 €/m² and in the south-west even more than 9,000 €/m².
Properties with sea views are considered premium locations and as such their value is higher than the average. Real estate on the first sea line can almost double the value of a property, depending on the region. In the south, for example, the first sea line with panoramic views command an average surcharge of 109%.
When it comes to Brexit, although it has left its mark on the island with British buyers being cautious, it has not affected the luxury segment. The mood among buyers of luxury property remains undamped in the face of Britain leaving the EU, even among British buyers.
At AvaLaw we are experts in real estate deals and have offices in Palma de Mallorca. Our international team of specialists can guide you through all the legal and financial steps involved in buying real estate in the island. Contact us at at email@example.com or give us a call at +34 971 712 264.