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Property prices in the Spanish island of Mallorca are creeping up for the most sought after locations and sales are also rising, including at the lower end of the market.

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The latest real estate analysis of the island’s property markets shows that the recovery is well underway with prices up by an average of 10% for the best quality homes in the top destinations.

Indeed, Engel & Völkers, which has 16 offices around the island, reports that sales increased by 27% in the first half of 2015 compared to the same period in 2014.

The firm says that confidence in the market and a flux of foreign buyers, mainly German speaking, British and Scandinavian, have fuelled the initial price increases of 10% to 15% for top quality properties in high demand prime locations.

Hot spots tend to be coastal locations such as Andratx in the south west of the island where, according to the latest Spanish land registry figures for 2014, Engel & Völkers dominated the market in Andratx and accounted for 70% of all transaction volume.

In Palma the historic old town and the fashionable port areas of Portixol and Molinar apartments with outdoor space are at a premium and for these type of properties prices have increased by approximately 10% over this time last year.

Son Vida is experiencing a boom with demand for contemporary style properties with sea views. The sale of plots has trebled since this time last year and in the South West, where over 40% of all sales are made to foreigners, prices have increased by approximately 10% over this time last year.

The report says that buyers in the region are demanding top quality, sea views and Mediterranean design and new trends include concierge serviced apartments. It is predicting a further 10% increase in prices for top properties.

Prices are stable in the West of the island with no significant increases recorded over last year while in the centre and South sales up by over 120% over this time last year. Prices are stable with increases of up to 10% for top locations.

Hot spots in the North include Pollensa Town and the Port with increasing interest for the coastal areas of Mal Pas and Alcanada. Buyers want quality and frontline positions and prices predicated to increase by 10% in 2016.

In the North East prices are stable here the lower end of the market selling well for properties under €500,000. The report says buyers are looking for bargains and specifically for fincas and townhouses which are less expensive here in comparison to other areas closer to Palma.

In the South East the sales picture is similar to this time last year with prices remaining stable. The area continues to represent good value and investors are currently buying a range of properties from €300,000 to €3 million.

 

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Residential property sales in Spain increased in May to their highest level for three years, according to the latest official figures.

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But there is an ongoing collapse in new home sales, the data from the National Institute of Statistics (INE) shows.

Overall there were 26,455 homes sale in May, up 5% on last year and 11% on the year before that. But a breakdown of the figures shows that the increase came from the resale market, up 34% over 12 months, whilst new home sales fell 42% to just over 6,000.

According to Mark Stucklin, of Spanish Property Insight the overall picture is one of a recovery in demand for property in all areas where foreigners tend to buy, but with the market hamstring being a lack of attractive new homes for sale.

However this could be about to change. Demand is growing for new homes in Marbella, for example and developers are building again.

Land is in high demand and for the first time in almost a decade residential, commercial and tourism projects are under construction and market sentiment is increasingly positive, according to Pia Arrieta, partner at DM Properties Knight Frank Marbella.

‘Genuine interest in good value, good quality, well located plots of land is on the increase. Land prices in Spain climbed 5.2% during the last quarter of 2014 and sales increased significantly compared with the same period in 2013,’ said Arrieta.

Arrieta explained that the strong pound is encouraging UK buyers who are considering a broader range of investments, but northern Europeans, particularly those from Scandinavia, the Benelux nations, Germany and Russia are also ranking highly among those choosing to build their dream homes on the Costa del Sol.

‘The demand for land stems from a growing appetite amongst end users’ for turnkey, contemporary products with the latest gadgets and luxuries. Competitive construction costs and the decline in land prices in recent years has spurred developers on,’ she pointed out.

‘Marbella’s accessibility along with continuing investment in the town such as its new boardwalk and the increasing number of top rated restaurants are also encouraging new development,’ she added.

According to Knight Frank’s head of sales in Spain Christian de Meillac this upturn in demand has also been replicated in registration figures. ‘In the first half of 2015 Knight Frank has seen a 65% increase in new applicants registering their interest in Marbella compared with the same period last year,’ he said.

‘Buyers are seeing value again. Prices have come down, the exchange rate is favourable and buyers are seeing long term growth potential,’ he added.

 

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It looks like Spain’s hopes for a record summer are well on the way to being realised and this tourism season it is the Brits who are ready with the readies. Official government figures for April showed that UK travellers spent in excess of €1 billion in Spain, making up 19.5% of the overall visitor spending figure of €5.155 billion.

In May, the spending continued, with 6.5 million overseas visitors spending €5.89 billion – a record-breaking total and a leap of 11.8% on the previous year, according to the Ministry of Industry, Energy and Tourism. Visitors from the UK made up 22% of the total to the end of May, with France and Germany also making up significant proportions of the market.

Many of those travellers are regular visitors to Spain, which is a popular destination for second homes, particularly amongst British buyers. Marc Pritchard, Sales and Marketing Director of leading homebuilder Taylor Wimpey España, comments,

“Spain offers British buyers everything they are looking for from a holiday home location – it’s a short flight from the UK, the weather is fantastic, there are more Blue Flag beaches here than anywhere else in the world and the cost of living is low compared to the UK. It’s a winning combination, particularly with pounds stretching even further thanks the exchange rate at present.”

Nor is it just the Brits who are buoying up the Spanish property market. Figures from the Ministry of Development show that non-Spaniards accounted for 16.93% of all properties bought in Spain during Q1 2015, a rise of 17.2% over the Q1 2014 figure. Areas like the Costa Blanca, in Alicante, top the list of popular destinations, while Mallorca also attracts a large share of overseas buyers each year.

In terms of visitor numbers, Palma airport on the Balearic Island of Mallorca is the third busiest in Spain, accommodating more than 23 million passengers in 2014, according to ENAIRE (formerly Aena) statistics.

Mallorca is a long-time favourite with British and German visitors with one of the area’s most popular locations being Porto Cristo, with its pretty marina, wide expanses of golden sand and plentiful shopping and dining options.

Taylor Wimpey España currently has two key-ready developments in the Porto Cristo area. Cala Magrana III has just two two-bedroom apartments left, which are available for €220,000 as part of an end of season offer. Nearby Cala Anguila II also has only a few apartments left, with two-beds starting at €230,000. Both developments include delightful communal pools, lush gardens and easy access to Cala Anguila beach and nearby golf courses.

“Many buyers are seeing this as the ideal time to purchase Spanish property,” continues Marc Pritchard, “And our Mallorca developments have been incredibly popular. Over 50% of our apartments at Cala Anguila with direct access to the beach were sold off plan in just six months. It’s excellent news for the Spanish economy, as is the promising summer that looks to be in store in terms of visitor numbers and spending. There are a lot of signs around right now – economic indicators, unemployment figures and so forth – that the Spanish economy is undergoing a serious recovery, so buyers want to pick up properties now in order to enjoy capital gains in the coming years. And with properties in places like Mallorca, they can sit back and relax in the sunshine while they watch their capital grow.”

For more information, please contact Taylor Wimpey España today on 08000 121 020 or visit www.taylorwimpeyspain.com. Those residing outside of the UK should call 0034 971 70 69 72.

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Monocle Magazine, in conjunction with the Spanish Tourist Office, has just launched the new comprehensive Monocle x Spain “Culinary Tour of Spain” guide. Written by Monocle’s gastronomy experts, the guide explores how to travel Spain discovering its different cuisines– by best produce, up and coming chefs, outstanding restaurants, gastro-markets, and trends.

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In celebration of Monocle x Spain guide, a collective of Monocle subscribers, Spanish gastronomic connoisseurs, food and travel industry professionals joined together last week to enjoy an evening of Spanish wine and cuisine at HISPANIA London, in the heart of the city.

The event brought a slice of Spain to London by Michelin star chefs Luis Veira from Arbore da Veira in A Coruña (northern Spain) and Marcos Morán from Casa Gerardo, in Asturias. Both chefs shared their favorite dishes to create a culinary experience as much in the tapas range as in the more formal cuisine.

Luis Veira, surprised guests with “Baby scallops with truffle potato and caviar”, “Fried langoustine with soybeans” and his most famous dessert “The golden ball”, a dessert of white chocolate and passion fruit on coconut powder.

The event was organized by Spain Tourism Board and supported by Brand Spain (Marca España) and Tasting Spain (Saborea España), the association of Spanish gastronomic destinations that makes it easier for international tourist to discover, book and enjoy a wide range of culinary experiences in Spain. Mr.Carlos Espinosa de los Monteros, High Commissioner for Brand Spain, along with H.E. Mr. Federico Trillo-Figueroa and Mr. Tyler Brule, Monocle founder and Editor-in-Chief, attended the event.

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