Mallorca West coast property report 2007

Mallorca West Coast Properties

Clients wishing to embrace the traditional rural Mallorcan life tend to look to the countryside, which is typified by wonderful views of the Traumuntana Mountain range, fields of almond and carob trees, terraces of olive trees, sheep grazing and ancient stone walls. This is the heart of Mallorca where the annual “fiestas” are enjoyed and actively promoted by the local town halls to retain and encourage village life.

This report was written by local estate agents.

The new motorway system from Palma up to the north of the island has had a marked impact on this area enabling fast and easy access to villages. For example, villages such as Llubi, Selva, Algaida and Montuiri, have all opened up as a result of the new motorway. In addition, the excellent train service from Palma through to Inca has now been extended to Sa Pobla, once again improving access.

The Buyer

Germans (40%) and British (30%) tend to dominate in this area and many clients become permanent residents. The majority of clients are therefore looking for a substantial property and inland they will get more land and property for their money than on the coast.

The most requested villages tend to be Santa Maria, which is so close to Palma (approximately 10 minutes drive) and the picturesque village of Alaro. As prices increase in these villages, clients search in others, which still offer good value for money such as Llubi, Montuiri and Algaida. Location and countryside views being the most important factors.

In the main, clients are looking for “fincas”, Mediterranean style country villas or town houses. Many will also consider buying plots of land to build to their own specification or actively look for a property to renovate. Some of the greatest increases recently have been on plots of land. In order to construct a property of 300 sq metres on land which is designated “rustic”, the plot size has to be 16.000 sq metres and obviously these plots are increasingly difficult to find.

Property Values

In the last five years prices have substantially increased (around 30-40%) and last year prices continued to rise around 10%. The average spend is approximately €800.000. Plots are much in demand, as much as 30% of clients are looking for land and this is reflected in the increasing prices. Plots sold last year were in the region of €400,000.

Rental Market <`>As so many residents intend to live full time or dedicate a great deal of time to their property, only a small percentage (approximately 5%) are interesting in renting. However, there are rental opportunities for clients who own a finca or villa, which are the most requested properties for rent. The majority of rental agreements are on a long term basis.

Tip for Investor in 2007

Inca is famous for its leather making industry and weekly market. The town itself has witnessed quite a transformation in the past couple of years and local investment in a new market area, pedestrianised zones and general infrastructure are all contributing to its development. The new motorway link means that villages close to the motorway have instantly become more accessible and therefore in demand.

Investors looking for good properties and traditional country village life should explore vil-lages such as Mancor de Valle, Costix, Llubi, Selva, Moscari and Montuiri.

Inland and Country Mallorca Property Prices

TYPEBEDSM2AV. PRICE €PRICE INCREASE 2001 – 2005PRICE INCREASE 2006€ AV. MONTH RENT HIGH€ AV. MONTH RENT LOW
Villa with views43503,000,00030%10%6,0003,850
Villa no views43502,500,00020%5%4,2002,500
Apartment with views2100400,00030%10%900700
Apartment no views2100300,00030%10%800600
Country house3350800,00035%10%4,2002,500
Townhouse3180500,00035%10%1,800900
Plot price €/m230045%15%

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