South West Mallorca property report 2008

This is one of the most active regions for the second home residential market on Mallorca and one of the most expensive, where the average spend for a property is around €1 million.

Report prepared by local estate agents

Last year was a good year, and prices continue to increase and are expected to achieve 5-20% this year and more for good plots, which are at a premium. The south west has an international atmosphere and is completely geared to year round living with excellent sports facilities (there are 11 golf courses here), clubs, restaurants, luxury hotels and boutiques. The majority of buyers here do not buy with a mortgage. Although it was anticipated that the market would start to slow down this year all the offices in this region are reporting a good start to 2008 as it appears that top end clientele are resilient to worldwide economic fluctuations.

Portals Property

Clients are attracted to this area because of its exclusivity, the upmarket marina at Puerto Portals, the Royal Golf Bendinat, the beaches and its proximity to Palma (approximately 10-15 minutes drive). Here prices are increasing around 5% and more for very scarce plots (around 10%). Recently, there has been a trend towards buying more villas and contemporary design houses, which range in average price from €1 – €3 million. The main buyers are British (40%), Germans (25% and Spanish (10%) followed by a mix of Scandinavians, Swiss, Dutch and recently some Russians. The majority of clients buy a property as a second home and tend to be over the age of 40 and many of them visit 4-6 times a year. For permanent family residents, there is a good selection of international schools nearby and a new private school will open at Portals in September 2008. The local office highlights the areas of Cala Vinyas for good value and investors should look at Sol de Mallorca for well located frontline property.

Santa Ponsa property

The new extension at Port Adriano is now underway and this has renewed interest in an area which still offers good value, top sports facilities, is ideal for families and easily accessible.

There is a lot of confidence in the market here and property values increased last year from 7-17% with 37% increases for plots and property generally sells within the year. The average price starts at €400,000 for an apartment up to €1 million plus for a villa.

The main markets are British (39%), German (23%) and Spanish (20%) with a mix of Dutch, Belgian and Russians. The majority of which buy as a second home and are aged between 40-50. The Russians and the Germans are the biggest average spenders (over €1 million). The British and Spanish tend to spend around €725,000. The area of Son Ferrer is still well priced and Port Adriano/El Toro is worth investigating.

Paguera/Cala Fornells/Capdella

Clients come to this area for wonderful sea views, peace and quiet as the area is located away from the bustle of the main resorts. Prices for apartments increased by approximately 20% in 2007 and by 5% for fincas. Average prices start at €200,000-400,000 for an apartment up to €800,000 for a finca and €1 million for a villa. The market is very active with a sale period of 9 – 18 months for property under €3 million. Apartments are the most requested properties, particularly those with sea views and close to the beaches. The market is dominated by the British (50%) with German (30%), Spanish (10%) followed by some French and buyers from Eastern Europe and the majority are buying a holiday home. The most requested area is Cala Fornells where the local office believes is still worth investing and inland at Capdella.

Puerto Andratx and Andratx Town

This is one of the most fashionable areas of the island where the rich and famous meet. The main attraction for buyers is the area’s exclusivity, cosmopolitan atmosphere, beautiful landscape and bustling port area. The market here has remained buoyant in 2007 with price increases of 6%-15% and in some cases, up to 100% for well located sea view plots. Most property has been selling within the year and there has been increased demand for penthouses with sea views which average €1 million going up to €2 million plus for a villa.

The majority of buyers are German (40%)or British (40%) with some Scandinavians, Swiss, Irish, Dutch and Austrians. Although the majority (80%) buy a property here as a second home, there is still a small percentage who settle with their families which is reflected in increased demand for child friendly properties.

The average spend is in excess of €1 million and asking prices are being paid for new developments with some negotiation on existing property. The most requested areas are Camp de Mar, Cala Marmacen and Montport. According to our local office there are still pockets of opportunity around Puerto Andratx and Camp de Mar.

Portals Property Prices

TYPEAV. PRICE €PRICE INCREASE 2006 VS. 2007AV SALE PERIOD IN MONTHS
Villa with views, 4 bed, 350m22.000.0005%12
Villa no views, 4 bed, 350m21.500.0000%18
Apartment with views, 2 bed, 100m2500.0005%12
Apartment no views, 2 bed, 100m2375.0000%18
Country house, 3 bed, 350m2
Townhouse, 3 bed, 180m2650.0005%12
Plot m265010%12

Santa Ponsa Property Prices

TYPEAV. PRICE €PRICE INCREASE 2006 VS. 2007AV SALE PERIOD IN MONTHS
Villa with views, 4 bed, 350m21.500.0007%12
Villa no views, 4 bed, 350m21.200.0009%12
Apartment with views, 2 bed, 100m2440.00010%9
Apartment no views, 2 bed, 100m2400.0007%9
Country house, 3 bed, 350m21.000.00017%18
Townhouse, 3 bed, 180m2600.0000%18
Plot m255038%6

Paguera Property Prices

TYPEAV. PRICE €PRICE INCREASE 2006 VS. 2007AV SALE PERIOD IN MONTHS
Villa with views, 4 bed, 350m21.600.0000%12
Villa no views, 4 bed, 350m21.200.0000%18
Apartment with views, 2 bed, 100m2400.00020%6
Apartment no views, 2 bed, 100m2320.00010%12
Country house, 3 bed, 350m2800.0000%18
Townhouse, 3 bed, 180m2
Plot m23500%15

Andratx Property Prices

TYPEAV. PRICE €PRICE INCREASE 2006 VS. 2007AV SALE PERIOD IN MONTHS
Villa with views, 4 bed, 350m22.650.0006%10
Villa no views, 4 bed, 350m21.550.0003%14
Apartment with views, 2 bed, 100m2700.00015%7
Apartment no views, 2 bed, 100m2500.00010%10
Country house, 3 bed, 350m21.850.0006%12
Townhouse, 3 bed, 180m2
Plot m26505-100%8

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