Last year, property prices in the Balearics went up by 4% in just 12 months. Majorca Daily Bulletin confirmed the most in demand real estate included coastal properties in the Balearics and the Canary Islands. According to the report, other desirable properties in Spain listed cities like Barcelona and Madrid, where prices also keep rising. The Balearics have enjoyed the greatest growth in property prices since the 2014 recession, with an increase of almost 20%.
Despite the increase in property prices in Mallorca, the report states housing prices are still below the pre-crisis peak, with real estate prices in Spain still almost 35% lower than they were back in 2007. More and more investors are now buying property on the Balearic Islands as it continues to outperform the rest of Spain. The overall fall in the Balearics is much lower at 22% since 2007. Investors are particularly interested in property in Palma and properties with sea views.
The real estate market in the Balearics is relatively stable compared to the rest of Spain. Developers and real estate agents are seeing an increase in demand for quality homes and new developments. Mallorca has received a lot of international attention, including The New York Times, marketing the Balearics as an ideal market for foreign buyers. German and British buyers have always been interested in Mallorca. However, now Scandinavian buyers are taking notice too.
Mallorca has always been a popular holiday destination, which is why the property prices in the rental market have also increased, despite local authorities trying to put an end to illegal holiday rentals. Now more than ever, it is essential to buy properties with rental licenses if a buyer wishes to buy property as a rental investment. Only properties with a rental license can be rented as holiday homes in Mallorca and the Balearics.
A recent study conducted by the Centre for Real Estate Studies (CRES) in Germany found that Mallorca was a triple A (AAA) destination with a secure real estate market, ideal for foreign buyers. The study confirmed that luxury property prices in Mallorca will rise in 2019, especially in the southwest of Mallorca and Palma old town. Real estate prices will also go up in the municipality of Llucmajor, where a number of frontline luxury properties can be found along the coastal areas.
The most sought-after properties in Mallorca continue to be luxury villas, traditional townhouses and sea view apartments. As of recently, rental licenses for homes in Mallorca are only granted to detached properties which meet a number of requirements. It is important to make sure you rely on professional experts when buying real estate in Mallorca. Balearic Properties can advise foreign buyers interested in buying properties suitable as rental investments with attractive property prices.