Mallorca’s Prime Housing Prices Rise On American Buyers Demand
Spanish island of Mallorca, prime prices rose 15 per cent in the year to June 2023, according to research from property firm Savills, which puts Mallorca in the top five in their rankings of second home locations. Savills looks at cost among other factors such as quality of life, airport connectivity and high-end restaurant and hotel offerings, all of which Mallorca scores highly on. The average asking price in Port Andratx in the south-west of the island was approximately five million euros (S$7.4 million) in 2022, compared with 4.5 million euros the year earlier, according to Engel & Volkers. Country houses and finca – or farmhouse – estates near the popular village of Deia, home to a Belmond hotel, have seen asking prices rise to four million euros from three million euros the previous year. This price boom and the upscale shift on the island has made housing more unaffordable for locals. People from outside Spain bought around 36 per cent of properties sold in Mallorca and neighbouring islands in the fourth quarter of 2022 – and home prices in the Balearics are now the highest among all the Spanish regions. Spain is now one of the top global destinations for ultra-high-net-worth individuals, which is also pushing prices higher, according to analysis from Knight Frank. “The majority of people are British buyers looking for holiday homes,” said Alice Storrie, associate director at Savills, but added she’s increasingly seeing more Americans buying property on the island since direct flights to the capital, Palma, originated in 2022. The United flight from Newark International Airport is bringing over a whole new group of buyers at a time when the exchange rate has been favourable to US-based buyers.
Tags : Spanish island Mallorca research property firm Savills high-end restaurant hotel offerings British buyers holiday homes