According to a report commissioned by Porta Mallorquina Real Estate, supply for the luxury residential holiday property market has declined considerably in Mallorca. This has had a direct effect on prices - these have risen by up to 29% over the past year.
The study, undertaken by the Center for Real Estate Studies at the German Steinbeis Transfer Institut, indicates that leading agencies currently have some 3,750 properties on their books, 18% fewer than a year ago, albeit that there are around 500 projects in the planning phase. Prices are rising because of increased demand from the German market in particular.
These increases vary by region of Mallorca. In the southeast they have gone up by 29%, followed by 24% in the northeast and 22% in the northwest. Average prices in the luxury segment range from €3,354 euros per square metre in the island's centre to €6,250 in the centre of Palma and €7,319 in the southwest.
The director of the study, Professor Marco Wölfle of the Center for Real Estate Studies says that the supply of apartments in holiday complexes has reduced considerably over the past year. "This type of property may have been especially sought after as a residential and work address during the pandemic. Leaving a vacation apartment unused for a long period of the year is not a problem and it is also much less expensive than a house with a pool."
At present, one in four new building projects in Mallorca is a holiday complex; in 2021 it was one in five. Prices for a newly built 100 square metre apartment without sea views, start at 300,000 euros. The director of Porta Mallorquina, Timo Weibel, says that anyone wanting to buy a property in Mallorca at the moment will have to make a quick decision. Once an attractive property comes on the market, it will soon be snapped up. "The trend towards luxury properties continues. Not only in Palma and the southwest, but throughout the island."
Sea views, according to the study, are a relevant factor and affect the price; high premiums are paid for having exclusive views. Another factor is a swimming pool. There is a considerable difference in price between properties with a pool and those without.
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