Mallorca has always been a destination for the rich and famous. Luxury properties are in abundance, the city of Palma has everything you need, and the best beaches in the world are at your doorstep. The high standard of living in Mallorca is attracting new foreign buyers, sparking demand for luxury homes. Hence, luxury property prices will rise 6% annually until 2022, according to a recent study mentioned in the local Mallorca newspaper Ultima Hora
The study included 4.900 properties in Mallorca and was carried out by the Centre for Real Estate Studies (CRES) in Germany. Mallorca has been qualified as a triple A destination, considering it a stable luxury real estate market due to its infrastructure, landscape, pristine beaches and various flight routes. Foreign buyers not only come for the sun and sea. Mallorca is a desirable destination for foreign buyers due to the island’s standard of living, luxury boutiques and yacht marinas.
Since 2015, prices have increased in Mallorca with the average m2 price for luxury holiday rentals reaching 5.429€, up 8% since 2018. Depending on the type of property and location, foreign buyers will find luxury holiday properties suiting all budgets and lifestyles. The prices of holiday rentals vary according to areas, with m2 prices starting at 3.306€ in central Mallorca, moving up to 7.222€ per m2 in the southwest of Mallorca in areas such as Puerto Portals.
The prices in the southwest of Mallorca are said to rise 16% in 2019, with other areas like the centre of Palma reaching a 10% increase in property prices and 20% in the area of Llucmajor. Areas surrounding Palma will go up only 4% this year, leading experts to believe this is a market correction after last year’s 36% increase in luxury property prices brought on by new developments.
Luxury homes on the island of Mallorca often include sea views and swimming pools, perfect for outdoor living during the 300 days of sunshine. Location also plays an important role in the pricing of luxury real estate in Mallorca. Whereas a luxury sea view property can cost 15% more than other luxury homes, having a seafront property can add a third to the price. Frontline properties in the south of Mallorca are 57% more expensive than luxury properties in the north of Mallorca.
The location and standard of the luxury property will define its price range. However, other perks and amenities can also increase the value of a luxury property in Mallorca significantly. Proximity to international schools makes certain luxury properties ideal for families. Furthermore, being close to yacht marinas and beaches can be ideal for expats and investors. Average m2 prices in the south of Mallorca include 3.955€ without views, 4.374€ with views and 6.437€ for seafront homes.
Luxurious living requires extra perks, which come at a price. Swimming pools can represent up to a fifth of the value of a luxury property in Mallorca. Interestingly, luxury homes with unique infinity pools, slides, jacuzzis and countercurrent systems can even reach asking prices up to 40% higher than other properties on the island. If you’re looking for a dream home in Mallorca, contact Balearic Properties to find luxury homes ticking all your boxes, with thousands of properties to choose from.
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The real estate experts at Balearic properties share their knowledge and experience of the real estate market in Mallorca As international property consultants.