South East Mallorca property report 2007

South East Mallorca Properties

This stretch of coastline has some of the most beautiful beaches on the whole island including the famous “Es Trenc” beach with its “Caribbean” style waters and white sand. The traditional resorts around Porto Colom, Porto Petro and Cala Figuera are all currently undergoing refurbishment to improve the general infrastructure of the harbour area and town.

Resorts such as Colonia Sant Jordi, which is the traditional Mallorquin holiday area, has now become more popular with outside foreign markets. Last year the local council launched a new initiative to support and promote the natural beauty and environment of the area. Cala D’Or, which has always been very popular with the British market, has also invested in its harbour area and now features a very smart new Yacht Club with excellent modern facilities.

Inland the countryside is renowned for its rich, fertile red earth and gently undulating hills. In summer many farms sell produce from the side of the road particularly large melons of all varieties. Much of the property inland tends to comprise of large “fincas” with views of the countryside, some of which have views to the sea.

The new motorway infrastructure has dramatically reduced drive time to this area by approximately 30 minutes from Palma and this is already having a positive effect on sales in the area.

The Buyer

The main buyers in this area are British and German which account for 80% of all sales followed by Spanish, Swiss, Scandinavian, Austrian, Italian and French.

Clients are attracted by the traditional atmosphere of the area, the excellent beaches and landscape. The most requested areas tend to be close to the sea around the ports and beaches and villages such as Santanyi. Buyers are looking for properties with character and original features in keeping with the countryside.

Many buyers use their property mainly in the summer months but this is gradually changing as more are staying for longer periods at a time throughout the year.

Property Values

There is a great range of property in this area which starts at around €180,000 to 4 million. Price increases over the past 5 years have been quite dramatic (approximately 30%). Last year the average increases were approximately 10% demonstrating that this trend looks to continue as the combination of local investment together with improved access via the new motorway further develops and updates the overall infrastructure of the area.

The Rental Market

Rentals are popular in this region, which is why the local shop is planning to open a rentals division.

Tip for Investors in 2007

This area is wide open for investment. Areas such as Felanitx are still well priced and offer good value. Local investment is currently being made in many of the areas around the fishing ports and traditional seaside resorts of the 1970’s of Porto Colom and Cala Figuera and this is reflected in subtle changes such as smart new cafes and restaurants, re-painting of facades, more planting in public areas and refurbishment of seaside promenades. Areas that are definitely on the up include Porto Colom, Son Macia and Ses Salines.

South East Mallorca Property Prices

TYPEBEDSM2AV. PRICE €PRICE INCREASE 2001 – 2005PRICE INCREASE 2006€ AV. MONTH RENT HIGH€ AV. MONTH RENT LOW
Villa with views43501,200,00040%13%
Villa no views4350900,00040%10%
Apartment with views2100325,00025%15%
Apartment no views2100265,00025%10%
Country house33501,300,00035%15%
Townhouse3180400,00040%12%
Plot price €/m239050%15%

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