Mallorca’s real estate market is booming
The new development segment of Mallorca’s real estate market is booming with constant and high consumer demand. This is underlined in published statistics by the Ministerio del Fomento on a newly built property in the Balearic Islands.
The latest figures indicate that the total volume of sales transactions in the region more than doubled in the first and second quarters to reach 390 million euros in 2021 from 190 million euros in 2019 for the same period. Even last year during the pandemic, total sales increased slightly to â¬ 212 million in the first and second quarters.
It is a dynamic sector of the real estate market with strong interest from foreign buyers, and the Balearic Islands have become one of the the best real estate destinations for foreign investors in Spain and the Mediterranean with main interests in Germany, UK, France, Netherlands and Sweden. Switzerland and Austria.
According to Hans Lenz, Managing Director of Engel & VÃ¶lkers Mallorca Southwest: âDue to the glaring lack of land for construction, the developers have focused on high quality construction. luxury real estate with the best Mallorcan architects who add extraordinary style and prestige to every project.
Since the construction of new developments peaked in 2007, when some 11,830 licenses were granted in the Balearic Islands, construction costs have tripled mainly due to the use of high quality materials. Subsequently, the new construction has a market added value of at least 10% on the final posted price plus other factors such as the substantial use of durable materials, environmentally friendly technology with innovative architecture and design that has an additional impact on value â.
Engel & VÃ¶lkers Mallorca Southwest with more than 30 years of expertise on the island is at the head of two “approaches” new developments with award-winning local architects, Tomeu Esteva d’Esteva i Esteva and Jaime Oliver from OHLAB who focus their international expertise on two very individual projects: Amber Village located on a hill overlooking Port Andratx, and Parallel in Bonanova on the outskirts of the city overlooking Palma.
The emphasis on contemporary modern architecture with Mediterranean details (such as dry stone walls with local stone, wooden details and shutters) has become popular with standard features such as underfloor heating, designer bathrooms and kitchens, as well as the latest technology to meet the demands of the international investor.
In contrast, more and more developers are now looking for central locations in the rural heart of the island near traditional villages overlooking the Sierra Tramuntana mountains to build ‘unique’ modern country houses with stunning contemporary designs. Says, Christina Deutsch, Managing Partner, Engel & VÃ¶lkers Mallorca Central & South; âIn recent years, the attraction of village locations for new off-plan projects has been a growing trend for developers.
As land becomes harder and harder to find, developers have invested inland for new opportunities. In the traditional wine regions of Binissalem, Binali and Sencelles, all located within a 30-minute drive of Palma, with good road links and wonderful mountain views, a handful of new projects are now planned for the next two years. To the south, like the traditional town of Llucmajor, is an area with great potential that offers a variety of restaurants, facilities and a local market and offers easy access to the coast, Palma International Airport and the capital â, explains Deutsch.
In Palma’s old town, Can Santacila is the redevelopment of a 16th-century mansion that is nearing completion, comments Terence Panton, Managing Partner, Engel & VÃ¶lkers Palma Center and East; “It’s a rare opportunity for buyers to invest in superb contemporary design within a unique historic building with all the modern comforts and facilities that are hard to find in the center of the old town.
As a year-round destination, Palma has a superb cultural offering and a lively social agenda with restaurants, shops and a range of sports facilities which underlines the attraction for investors from all over Europe â.
In today’s climate, prop-tech tools have become increasingly useful in giving potential buyers a first impression of off-plan projects. High quality renderings combined with drone shots of the location and past high performance animation technologies have become more and more sophisticated.
In the case of the Amber Village development, the client can book a LIVE virtual tour and immerse themselves in a virtual tour to get a real impression of the residential complex and houses and get a feel for the size, layout and peculiarities characteristics. They can also interview the presenter and the virtual tour agent of the comfort of their sofa in a compelling two-way tour, fully flexible and personalized according to customer needs.