Mallorca is always a firm favourite with celebrity holiday-home buyers.

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When it comes to finding a place that provides beauty, tradition and tranquillity mixed with luxury living, beautiful people and pumping nightlife, the magnificent Spanish island of Mallorca wins every time.

Robert Graves first cemented Mallorca’s image as a fashionable holiday hub when he set up home there before the Second World War. He described the island as ‘paradise’, and ever since celebrities have followed in their droves, with many snapping up second homes away from the bright lights of the paparazzi.

Ignacio Osle, Sales and Marketing Director of leading house builder Taylor Wimpey de España, explains,

“Although Spain’s biggest island, Mallorca offers private beaches and secluded mountain retreats, affording enough comfort and concealment to continue enticing celebrities with many choosing to remain in the privacy of their villas and private grounds. But of course, there is always the opportunity to spot a star dining out in one of Mallorca’s finest restaurants or soaking up the sun on one of the beautiful blue flag beaches.”

The list of famous glitterati visitors extends far and wide with the likes of Paris Hilton, Sting, Joan Collins, The Beckhams, Tom Cruise, Brad Pitt and Gwyneth Paltrow having been spotted holidaying on the island while residents who have succumb to Mallorca’s charms include Michael Douglas and Catherine Zeta-Jones, unofficial ambassadors for the island, who own a luxury house in S´Estaca, and Boris Becker who has a £10 million estate in Arta. Super model Claudia Schiffer has described Mallorca as “the most beautiful place” that is “idyllic, romantic and peaceful with an amazing coastline, wild mountain landscapes, friendly people and excellent food” and bought an entire mountain, building a £6 million paparazzi-proof lavish hilltop estate built in Camp de Mar.

Tourists who like to stay longer and visit more frequently, especially the rich and famous, have helped to keep the real estate industry thriving in Mallorca. The relatively stable climate of Mallorca along with the quality of life on the island has long been a popular place to invest in property and has kept property prices well above average.

Taylor Wimpey de España who recently received an 86% customer satisfaction rate for 2011, are providing the perfect opportunity for potential investors to view their luxurious yet affordable fully furnished ready to move into properties in Mallorca at their show home event until the 15 September 2011 with properties such as El Puerto II, Cala D’Or and Pollentia Mar in Puerto Pollença open to prospective buyers.

El Puerto II, Cala D’Or

El Puerto II consists of two bedroom apartments located on the south east coast of the island, very close to the stunning celeb hangout of Cala D’Or marina costing from just €177,000 with furniture included. With 3 communal swimming pools available these properties are surrounded by outstanding natural beauty offering various activities such as water sports, biking and golf in the local area.

Pollentia Mar

Pollentia Mar located in the seaside town of Puerto Pollença on the north-east coast, within easy reach of the UNESCO listed Serra de Tramuntana mountain rangeand Pollensa’s famous Voramar promenade, priced from just €265,000. As a single block of apartments Pollentia Mar has a communal area, swimming pool and private parking with an abundance of facilities nearby as well as offerings of peace and quiet and beautiful views.

Taylor Wimpey de España has launched a luxurious new-development, Aires de Pollensa, just minutes from Pollensa beach in the north of Mallorca, plus spacious town-houses in Camp de Mar Golf, Andratx.

For more information please contact Taylor Wimpey España today on 08000 121 020 or visit www.taylorwimpeyspain.com. Outside the UK call 00 34 971 706 244.

Leading Spanish holiday-home builder Taylor Wimpey de España are keen to sell 3 gorgeous apartments in a fantastic Mallorcan resort that has something to offer all the family. They are open to offers.

+ Make them an offer or find out more

The UNESCO World Heritage Site Committee has added the striking cultural landscape of the Serra de Tramuntana mountain range in Mallorca to its list of places of outstanding natural value.

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Forming the northern strip of the island of Mallorca, the remarkable mountain range, described as ‘a landscape that has been very intensely shaped by man, testifying to the continued interaction between mankind and nature throughout the centuries, has undergone lengthy restoration works on old stone walls, paths and mountain cabins over the years, many of which are open to the public as well as being marked by agricultural terraces and inter-connected water works that include water mills and dry stone constructions and farms.

With the support of 20,000 people, including famous glitterati residents and visitors such as Michael Douglas and rock star Patti Smith, as well as members of the Spanish royal family, Tramuntana it seems, was destined to have its name in the global spotlight with land commissioner and UNESCO candidacy representative María Luisa Dubón suggesting that the Tramuntana mountain range is the ‘jewel in the crown’ on the Mallorcan Island, sustaining elements of all civilisations as well as having a notably raw and dramatic landscape that rapidly climbs from sea level up to an altitude of 1,300 metres.

In light of the new World Heritage recognition, Mallorca, a traditional haven for holiday makers and property investors alike will certainly benefit from having its name inscribed on the list, helping to further boost tourism from a new kind of culture seeking visitor.

Ignacio Osle, Sales and Marketing Director of building mastersTaylor Wimpey de España, comments,

“World heritage sites inevitably attract tourists and we are delighted that the Serra de Tramuntana mountain range in Mallorca has been recognised for its cultural and physical beauty. Achieving heritage status will show the world that Mallorca has so much more to offer than just beaches and the glamorous jet set lifestyle.

“Highlighting Mallorca’s traditional side and celebrating the cultural and historical wonders that we are so very lucky to have on the island is extremely important and we believe that the recent listing will certainly attract a greater number of fascinated visitors as well as prospective property investors wishing to soak up the benefits from such a prestigious acknowledgement.”

Investment Opportunities

Leading house builders, Taylor Wimpey de España, are providing the perfect opportunity for inquisitive visitors and potential investors to view their luxurious yet affordable fully furnished ready to move in properties in Mallorca at their show home event until the 15th September 2011 with properties such as El Puerto II, Cala D’Or and Pollentia Mar in Puerto Pollença open to pEl Puerto II, Cala D’Orrospective buyers.

El Puerto II consists of two bedroom apartments located on the south east coast of the island, very close to the stunning Marina de Cala D’Or costing from just €177,000 with furniture included. With 3 communal swimming pools available these properties are surrounded by outstanding natural beauty offering various other activities such as water sports, biking and golf in the local area.

Pollentia Mar located in the seaside town of Puerto Pollença on the north-east coast, within easy reach of the Serra de Tramuntana mountain range is located just 50 meters from the beach and Pollensa’s famous Voramar promenade, priced from just €257,510. As a single block of apartments Pollentia Mar has a communal area, swimming pool and private parking with an abundance of facilities nearby as well as offerings of peace and quiet and beautiful views.

Taylor Wimpey de España has launched a luxurious new-development, Aires de Pollensa, just minutes from Pollensa beach in the north of Mallorca, plus spacious town-houses in Camp de Mar Golf, Andratx.

For more information please contact Taylor Wimpey España today on 08000 121 020 or visit www.taylorwimpeyspain.com. Outside the UK call 00 34 971 706 244.

Taylor Wimpey de España has launched a luxurious new-development, Aires de Pollensa, just minutes from Pollensa beach in the north of Mallorca, plus spacious town-houses in Camp de Mar Golf, Andratx.

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The sleek and contemporary homes of Aires de Pollensa offer a winning combination of peaceful surroundings and beautiful views matched with a wide array of popular facilities around the port such as golf courses, including the famous nine hole Pollensa golf course, cycling routes, kite surfing, sailing and diving schools as well as traditional restaurants.

The modern three-floor development has two and three bedroom apartments available from €260,000 with spacious terraces and private gardens in a gated community with parking and a dazzling communal pool. Aires de Pollensa is under construction so sales are off-plan.

Puerto Pollensa offers all manner of opportunities to explore the dramatic northern extremes of Mallorca – with its sandy coves, hilltop villages and peaceful olive groves a world away from the busier areas of the south.

Ignacio Osle, Sales and Marketing Director of Taylor Wimpey de España, explains, “Mallorca seems be receiving a touch of the Monaco effect, attracting the rich and famous to our shores. The island is already noted for being fashionable, desirable and fantastic for boat owners and beach lovers alike.”

Growing Optimism

The launch comes amidst growing optimism and signs that the quality holiday-home market segment in Spain has turned the corner.

“Over the last 12 months we have seen both visitor numbers and enquiries for property in Mallorca rise steadily,” explains Osle. “Buyers from the UK and Europe are not only looking at the traditional property hotspots on the mainland but further afield to Spain’s stunning islands such as Mallorca.”

Providing a further boost to Mallorca’s visitor numbers in 2011, Monarch Airlines is increasing its programme of flights from the UK to Mallorca from April in response to customer demand as well as Aer Lingus adding a twice-weekly service from Cork in southern Ireland to Palma de Mallorca.

The booming Mallorcan holiday home market provides the perfect opportunity for anyone seeking to buy a property and generate rental income. According HomeAway Holiday Rentals, a two bedroom property yields an average of £700 per week and a three bedroom property an average of £1,000 per week in rental income.

Altos del Golf

Taylor Wimpey de España have also just released a selection of 2 to 4 bedroom townhouses, from €505,000, with spectacular sea and mountain views, situated in Camp de Mar Golf (Andratx) – one of the most exclusive areas of Mallorca.

For more information please contact Taylor Wimpey España today on 08000 121 020 or visit www.taylorwimpeyspain.com. Outside the UK call 00 34 971 706 244.

The capital city of Madrid may be well known for its searing summer heat but this year’s hottest Spanish destination for home-buyers will be the Balearic island of Mallorca, say the experts at leading developer Taylor Wimpey de España, the Spanish division of one of the UK’s biggest home-builders.

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“Over the last 12 months we have seen both visitor numbers and enquires for property on Mallorca rise steadily,” explains Ignacio Osle, Sales and Marketing Director of Taylor Wimpey de España. “Buyers from the UK and Europe are not only looking at the traditional property hotspots on the mainland but further afield to Spain’s stunning islands such as Mallorca.”

And it’s not hard to see why this charming Mediterranean island is so popular. Mallorca offers something for everyone from amazing sandy beaches to stunning scenery, idyllic coves, traditional architecture and wide range of sports and leisure activities. Palma de Mallorca, the island’s capital, has also recently been voted one of the five leading Spanish towns for travel and tourism in 2010 by Exceltur.

Over 21 million passengers pass through Son San Joan airport at Palma de Mallorca year making it Spain’s third busiest airport and in summer, the busiest. In response to demand numerous airlines have increased frequency and started new routes to the island making accessibility even easier.

Eastern Airways will be launching new weekly direct flights from London Oxford Airport to Palma this June, easyJet is now operating a new flight from Manchester, tickets are on sale with Jet2.com from Glasgow to Palma and budget airline Ryanair will commence routes from Birmingham to the island this summer as well as a new national route from its base in Alicante.

In addition to air arrivals, Mallorca is also seeing significant numbers of visitor arrivals by sea with Palma receiving over 500 cruise ships last year, carrying some 1.3 million passengers. Docking in Palma has become so popular in fact that a designated berth is under construction at a cost of some 28 million euros by the Port Authority in the Poniente docks to accommodate up to 5 of the larger vessels.

One previous cruise ship regular, entertainer Claire Sweeney, stopped at Palma so regularly and fell in love with Mallorca so much so that she purchased a home at Cala Viṅas, just minutes from the capital.

The Balearics’ property market remains robust with a 145% increase in property sales in 2010 compared to 2009 recorded by the Public Works Ministry and Mallorca itself has the second highest average asking price in Spain at €428,300 according to the latest Kyero.com Spanish House Price Index (Q1 2011).

Asking prices however have fallen over the last 24 months as the market has realigned and affordable properties are available. Taylor Wimpey de España for example are launching two superb new residential developments, Aires de Pollensa, just minutes from Pollensa beach in the north of the island and in respond to client demand, a new phase at Los Altos del Golf in Andratx, in the south west.

Both developments offer a very high standard of build as is expected of Taylor Wimpey de España with spacious 2 bedroom apartments at Aires de Pollensa available from €260,000 and large detached 2, 3 and 4 bedroom properties in one of Mallorca’s most exclusive areas at Los Altos del Golf available from €505,000.

Just launched, interest in these developments is already high so for more information contact Taylor Wimpey de España today on 08000 121 020 or visit www.taylorwimpeyspain.com. If you reside outside the UK you will need to call 00 34 971 706 244.

Cala Anguila, Puerto Cristo, Mallorca (Majorca). 25 high-quality apartments next to the beach from only 199,500 Euros, built by Taylor Wimpey, a blue-chip UK house builder with decades of experience building homes in Spain.

The revival of the Spanish property market continues at a pace with the Balearic Islands recording a 14.5% increase in property sales in 2010 compared to 2009 according to the latest data from the Public Works Ministry.

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For the first time in 3 years, the downward trend has been reversed with Spain as a whole reporting a 5.9% year-on-year increase in sales in 2010 compared to 2009. According to the official government data, a total of 491,000 properties were sold in Spain last year, 10,860 on the Balearic Islands of Ibiza, Majorca, Minorca and Formentera alone.

Ignacio Osle, Sales and Marketing Director of Taylor Wimpey de España, Spain’s leading house builder with developments within the Balearics, comments,

“Over the past 12 months we have seen buyer interest in the Balearic Islands, especially Majorca, rise steadily. The largest Balearic Island offers something for everyone from amazing sandy beaches to stunning scenery, idyllic coves, traditional architecture and wide range of sports and leisure activities.”

Majorca has long been a favourite destination with British holiday makers in particular who account for around 25% of all visitors. And indeed the popularity of the island has not escaped the attention of one of Spain’s leading carriers, Monarch Airlines, which is increasing its programme of flights from the UK to Majorca from April 2011 in response to customer demand.

As Ignacio Osle continues,

“Majorca remains one of the most sought after holiday and second home destinations in the Mediterranean. The local property market remains buoyant with foreign buyers keen to get a slice of island life by purchasing high quality, well located properties from as little as €143,900.”

Following the success of its other Majorca projects, Taylor Wimpey de España has just launched a new development on the east coast of the island. Cala Anguila is a boutique residential development comprising two bedroom apartments, set around lush gardens with direct access to the beach. Only 3km from all the amenities of Porto Cristo, Cala Anguila is ideally located with coves to explore, idyllic views to enjoy and numerous golf courses nearby.

Built to the highest standards, apartments start from €199,500 with ground floor properties boasting spacious terraces and private gardens and top floor apartments benefiting from private roof terraces.

Contact Taylor Wimpey España today on 08000 121 020 or visit www.taylorwimpeyspain.com for more information. Outside of the UK call 00 34 971 706 244.

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Mallorca had already shot to sporting stardom as the birthplace of tennis hero Rafael Nadal and is used as a training centre for many international tennis stars.

And now it is becoming a very real possibility that Formula One will be launched in Mallorca. This will attract a whole new crowd of petrol head enthusiasts – undoubtedly attracted by the racing, the wonderful climate and the excellent food. Mallorca is fast becoming the latest fashion destination in the Med

Despite the growing F1 calendar leading to suggestions that there will be no place for a second race in any one country, plans to build another potential Spanish venue continue un-thwarted

With the Spaniard Fernando Alonso’s ongoing success at the front of the field, and that of local resident Jorge Lorenzo in MotoGP last season, hopes are mounting, for those passionate about the sport, to see a world class motorsport facility in Mallorca. Rumour has it that Barcelona’s strong relationship with FI might prevent this happening but undeterred, those behind the dream of Formula One in Mallorca are now at the stage of finding backers for the project.

If this project comes off it is seriously good news for this Island which has already been protected from the worst of the Spanish recession. Ignacio Osle, Sales and Marketing Director of Taylor Wimpey de España, who has over fifty years of property development experience in Mallorca, comments:

“Mallorca seems be receiving a touch of the Monaco affect, attracting the rich and famous to our shores. The local area is already noted for being fashionable, desirable and fantastic for boat owners and beach lovers alike. If we are lucky enough to start hosting annual Formula 1 races then it will only serve to strengthen property prices as the demand to visit increases.

“Mallorca’s property market has not been affected by the world recession like some regions in mainland Spain. We have had to review prices but due to the lack of stock available compared to the demand for homes on the Island the market has remained really quite buoyant. Spain as a whole is a very fragmented market and good locations and quality property will always sell well whatever the market conditions. International events just add to their appeal”.

Llucmajor is the site being targeted for the F1 track. It has close to the major city of Palma making travel to and from easy. The organisers are hopeful that this bid will become a reality this year and there will be a grand prix in Mallorca in September 2012. Llucmajor Mayor Joan Jaume, who is supporting the bid, said: “The project would help not only the local community, but give the whole island a tremendous economic boost”

The 5km circuit is being designed by Spain’s own Gabriel Palmer with the help of Alonso’s Ferrari team for advice. He commented: “The Balearic Islands are the only region in Spain where there is no such facility. We had agreed to review the existing development plan in this community, and there we found a suitable property, which is only a short drive from Palma’s international airport, numerous hotels of all categories, and the capital itself.”

It appears that the current FI Valencia Street Circuit has been much-maligned. With drivers complaining about the lack of opportunity for changing position once the race has started. With one race failing to feature a single on-track change of position it has been dubbed by drivers and spectators alike as ‘boring’. The future of F1 in Mallorca (if at all) will largely be down to the Valencia Street Circuit’s plans to modify the course in an attempt to make the event more exciting to watch (and take part in). Valencia organisers will be speaking with F1 drivers to go over proposed alterations and see if they can integrate some overtaking opportunities into the circuit.

Taylor Wimpey’s Osle commented: “We are sitting tight and waiting to see what happens. If Mallorca is fortunate to win this bid then we will thrilled and our clients will all benefit. Our El Puerto II development in Cala D’Or only 20 miles from the proposed site. This new residential complex is situated close to the glamorous Marina de Cala D’Or in an area of outstanding natural beauty; buying here would offer the owners the best of both worlds, the perfect holiday destination as well as proximity to the roaring engines of F1 racing.”

Taylor Wimpey property for sale in Mallorca

El Puerto II, Cala D’OrEl Puerto II, Cala D’Or

El Puerto II in Cala D´Or, Mallorca

Two bedroom apartments located on the south east coast of the island very close to the glamorous Marina de Cala D’Or. With 3 communal swimming pools available these properties are surrounded by outstanding natural beauty offering various other activities such as water sports, biking and golf in the local area.

These properties are available now from €200,000. Contact Taylor Wimpey España today on 08000 121 020 or visit www.taylorwimpeyspain.com for more information. Call +34 971 706 244 outside the UK.

These properties are available now from €200,000. Contact Taylor Wimpey España on 08000 121 020 or visit www.taylorwimpeyspain.com. Call +34 971 706 244 outside the UK.

The most established British developer in Spain, Taylor Wimpey de España, announced this week that 2010 has seen increases of up to 50% in sales from last year. And it is the Balearic island of Mallorca that has played a major part in bolstering the figures by doubling their year on year sales.

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Javier Ballester, Managing Director of Taylor Wimpey de España comments on the news ahead of the official yearend figures:

“Sales to foreign buyers have been driven by the price adjustments that the Spanish market has seen; in Mallorca properties have seen reductions of up to 25%. Taylor Wimpey de España has of course followed the market closely and worked with the market conditions to maintain a buoyancy of sales which has proved effective. We are now looking at launching more developments to keep up with the current demand.”

“Mallorca has seen particularly positive figures due to two important factors. Firstly, we were not hugely overstocked as the recession hit so the supply and demand was always in our favour. Secondly, Mallorca is still considered a unique place and in many ways superior to some of the mainland destinations.

“Taylor Wimpey de España prides themselves on selecting development areas that have not been over exposed and still retain a great deal of Spanish charm.”

El Puerto II, Cala D’Or, Mallorcaare two bedroom apartments located on the south east coast of the island very close to the glamorous Marina de Cala D’Or, one of the best known marinas on the island. This development boasts three communal swimming pools and are surrounded by stunning scenery. Local amenities also include other activities such as water sports, biking and golf in the local area. These properties are available now from €200,000.

For more information on great quality property in Spain contact Taylor Wimpey España on 08000 121 020 or visit www.taylorwimpeyspain.com. Outside the UK call 00 34 971 706 244.

Introduction
The main objective of this report is to provide a guideline for vendors and potential investors into the current market situation for quality residential property on the island.

This year has certainly started with more activity and optimism for Mallorca’s second home residential market. All 18 of the Engel & Völkers offices throughout the island report a surge of increased requests and visits over the first half and in some areas sales have doubled over the same period as last year.

Since the end of 2008 vendors have had to adjust their pricing strategy to sell in the current market environment and prices overall have reduced by an average of 15-30% depending on location. Today, the general picture is that prices are not decreasing further, that the market is stable with price levels (in some areas) of 6/7 years ago. The increased sales activity also reflects what our customers believe; that prices will increase next year so now is the time to invest.

Still Good Long Term Investment Potential…
According to a property article in the Financial Times (February 5th, 2010) which cites Mallorca as a good place to invest; “You have plenty of choice and, if you do your research, you can find prices of 7-10 years ago. Mallorca will always be popular with affluent buyers. Prices will rise as the economic situation brightens“. Furthermore, The Daily Telegraph newspaper recently rated Mallorca the fourth best place to live in the world *12th April, 2010.

According to E&V Mallorca spokesperson, Daniel Chavarria Waschke; “The residential market here is stable and the Engel & Völkers offices are expecting serious buyers who want to invest in Mallorca over the coming months. So the prospects look good and we are cautiously optimistic for the rest of the year”.

Bargain Hunters Beware!
Among the international community, German speaking and Scandinavian buyers dominate the market at this time with less British clients than in previous years. Clients should be aware that more price reductions are unlikely to materialise at this stage as owners have, in most cases, already reduced prices and would rather sit and wait, or rent, than succumb to further discounts.

Mortgages Now Available
Spanish banks have started to lend again to non-residents for up to 70% of the property value and approximately half of the buyers will use the mortgage option for tax relief purposes. Demand is focused on prime property, mainly villas, well located fincas and penthouses, particularly on the seafront or with good views.

New Tax Rates
As of July 1st, the standard rate of Spanish Government Tax (IVA) will rise to 18% from 16% and the reduced rate will rise from 7% to 8%. Property buyers will pay 1% stamp duty plus 18% IVA on purchases of building plots. Buyers of new developments or property, which are being sold for the first time, will pay 1% stamp duty plus 8% IVA. For re-sales, the property transfer tax remains at 7%.

Local & International Investment Continues
International, national and local investment continues on the island with Palma’s new hospital near completion; the Palma Congress & Exhibition Centre is scheduled for completion in 2011; the super yacht designer marina at Puerto Adriano will open in Spring of 2011 and the new Jumeriah Puerto Soller luxury seven star hotel will open in Summer 2011.

A top destination for a quality Mediterranean lifestyle
Over the past 15 years Mallorca has successfully transformed the island from a sun and sea holiday destination to a year round location with one of the most sophisticated infrastructures in the Mediterranean.

The island is easily accessible from all over Europe and beyond with a modern international airport and features a diverse range of landscapes including the breathtaking Sierra de Tramuntana mountain range, beautiful coastal areas, stunning beaches, traditional Mallorcan villages and the elegant capital of Palma. Mallorca offers an excellent range of hotels, restaurants, shopping, a year round cultural and activity programme and an ideal place to practice sports with 23 golf courses and 44 marinas.

Mallorca Property Market by Area

PALMA

Palma City / Old Town & Portixol
In these areas the market boomed until 2006/2007 and since that time prices have decreased by approximately 25%. For example; a 2 bedroom apartment with views will now come onto the market for around 450,000€ and a similar size apartment without views will be around 150,000€ less.

There is always demand for really unique, special properties with either views to the sea or over the old town – particularly those properties with outdoor space. These types of properties are not so susceptible to market changes and generally hold their value. Main buyers at present are: Scandinavian, German, Swiss and Austrian – some of them focusing on prime property of around the 1 – 3€ million price level. They are attracted to Palma because of it rich cultural background and year round activity.

According to Terence Panton, Managing Partner of E&V Palma; “Palma old town provides a unique area of real estate in Europe with a limited supply. The current aggressive “bargain” mentality doesn’t help general negotiations as owners will only reduce to a certain level and then no more. Careful negotiation with a realistic view on pricing means that both parties will walk away satisfied with the final deal”.

Palma City/ Rentals
There is strong demand for long term rentals (minimum of 12 months) and more mid level properties have come onto the rental market as owners do not wish to further reduce their sales price leaving the rental option. More choice means more competition and for this reason rentals have come down over the last 18 months by about 10-15%. For example, a two bedroom apartment in the old town will now yield 1,200€ per month, around 200€ less than in 2007.

Palma City/ Paseo Maritimo, outskirts
In Palma’s Paseo Maritimo area with its spectacular views over Palma Bay and luxury marinas, apartments have reduced by around 25-30%. However, villas with views in the immediate outlaying areas of the city such as Bonanova and Genova are holding their value and owners will only consider slight reductions to close a sale.

Son Vida, Puigpunyent, Esporlas, Establiments
The exclusive area of Son Vida remains interesting for buyers who are looking for a secure, long term investment. Main attractions are its proximity to the historic centre of Palma and the international airport.

Son Vida provides a peaceful environment for the most discerning tastes and features three golf courses and two luxury hotels.

Son Vida has largely been unaffected by the crisis and prices have softened slightly by 10-15%. Although the margin for negotiation has, in some exceptional cases, closed at 35% below the original asking price.Currently, the most sold properties are villas of approximately 400m2 ranging from 1.250,000€ to 2€ million. Villas with sea views always fetch a premium price of around 3-5€ million.

Prices in the surrounding villages closest to Palma have dropped up to 25%. Now, there are some excellent buys for investors who want to enjoy the charm of a traditional village surrounded by beautiful scenery. The most sold properties tend to be family houses of around 900,000€.

Palma Surroundings/ Llucmajor
This is an exciting area south east of Palma, which is ripe for further investment with improved infrastructure and new highways. It is close to Palma and the International Airport and over the past 10 years the area has attracted investment by luxury hotel groups including Marriot and Hilton. Recently, the new luxury boutique hotel, Cap Rocat, opened at Cala Blava.

SOUTH WEST

More sales were made in the first quarter of this year than in the previous three years with good future prospects for the peak buying period. Around 60% of all requests are for properties under 1€ million, although the average sales price remains around 1€ million and the majority of properties sold are villas or penthouses.

There are fewer British buyers than in previous years but those that are here are spending more. The market is currently dominated by German speaking clients.
t be taken literally as valuations fluctuate depending on location, views, construction, quality, sun orientation, property features and land.

South West/ Rentals
Rental yield for a villa varies between 9-12 €/m2 of constructed area. For top quality properties the yield can increase up to 15€/m2 and top properties can still achieve even more. Well appointed apartments with good furnishings achieve approximately 12€/m2 and top apartments with views can yield 15€/m2. Demand for long term rentals is high and the variety of rental properties available on the market has increased over the past 12 months as more owners look to this option as opposed to selling.

South West/ Portals
There has been little change in the market since last year, prices remain stable and because of the density of wealthy clients in this area who can afford to wait for a market upturn, properties have either been taken off the market or gone onto the rental market. Here, villas with sea views command top prices of approximately 2€ million plus. Apartments with sea views will start at 500,000€ upwards and penthouses command premium prices of approximately 1.5€ million upwards.

South West/ Santa Ponsa
This area has been traditionally very popular with the international community and has a good supply of second home properties. People are attracted to Santa Ponsa because of its excellent facilities with four golf courses, good beaches and a fast road into Palma. Prices have come down by an average of 15% since 2008 and now a well located villa with views can average 1.5€ million and apartments with sea views will fetch around 400,000€.

The area around Puerto Adriano is attracting a great deal of attention in anticipation of the new super yacht marina which will open next year. In contrast, up in the hills of Calvia with views across the Bay of Palma, a new exclusive development of quality country style villas has been launched this year with prices averaging 2€ million.

South West/ Andratx, Puerto de Andratx
Sales have been steady since the start of the year with demand for front line villas and penthouses. Prices boomed in this area possibly more than anywhere else on the island and therefore price reductions over the past couple of years have been higher as a result of up to 20% in some exceptional cases. Currently, a well located four bed villa will average 2€ million and a two bedroom apartment with views will cost over 400,000€. Good plots do not stay on the market for long because of the limited supply. Prices range from 300€/m2 to 4,500€/m2.

West Coast/ Deià, Valldemossa, Sóller & Puerto de Sóller
Sales have been generally slower here than in the rest of the island even though there is a great deal of interest from potential buyers. One of the main reasons is that vendors are less likely to negotiate.

For example, in the picturesque village of Deia owners are reluctant to reduce prices because of the cachet associated with owning a home in one of the most desirable villages in the Mediterranean. Here a four bedroom villa with views will command an average of 2.750€ million.

However, in Valldemossa pricing is a little more realistic which provides more scope. Prices range from around 300,000€ for a well presented townhouse to 4-6€ million for a finca estate with land. Main buyers are Germans, British and Scandinavians.

Along the coast to Puerto de Sóller and Sóller there is a similar picture of potential clients making offers way below the asking price. The average price of a villa with views is around 2€ million and these prices have not shifted much in the past two years unless there has been a “distressed” sale. A well located 2 bedroom apartment with views can still command around 430,000€. Puerto de Sóller will come under the spotlight next year when the seven star luxury Jumeirah Hotel opens.

Mallorca Central & Inland
A large variety of property and locations are available here and each case tends to be different. Since 2008 there has been a general softening of prices of around -10 to -15%.

This year there has been increased sales activity in anticipation of future price increases. Inland Mallorca is a large and varied area. However, as a rough guide a well appointed, traditional finca with mountain views will average around 3€ million and a 3 bedroom townhouse will average 450,000€. Typical Mallorcan villages are increasingly popular offering a traditional rural Mediterranean lifestyle. Villages to focus on include: Bunyola, Alaró, Montuiri, Selva and Llubi.

THE NORTH

Pollensa, Puerto Pollensa
The best feature of this area is the amazing contrast between the spectacular mountainous interior and the coastline with its great family beaches. The north offers a year round lifestyle with good infrastructure and excellent sports facilities. A major attraction is the fact that it is not overbuilt and has many protected areas which provide good prospects for the potential investor because of the low level of new construction and strict planning permissions ensuring a good balance of supply and demand.

Prices in the north have fallen in the past two years by approximately 15-30% and are currently at their lowest level in five years. Demand is focused on prime properties such as villas and fincas in good locations. The market for smaller properties, and particularly apartments, practically disappeared at the end of 2008 but now this market sector is starting to move again. This year, sales of apartments have been made across the range from 150,000€ to 600,000€, which is a good general indicator as buyers realise that now is the right time to buy before prices start increasing.

The beautiful Formentor Bay, located at the most northern tip of the island, has long been regarded as a retreat for the rich and famous. The area provides complete privacy and tranquillity and because new development is almost completely forbidden, prices of frontline properties here still retain a premium.

Alcudia & Puerto de Alcudia
This area is ideal for holiday home investment with excellent beaches, good infrastructure, a range of sports facilities including the 18 hole Alcanada Golf Course and the Puerto de Alcudia and Bonaire marinas. Well located, front line property has retained its value in this area although prices, particularly for smaller properties, have decreased by up to 25% (depending on location) offering price levels of six/seven years ago. Prices range from 300,000€ for a two bedroom apartment with sea views to over 1€ million for a luxury seafront penthouse.

Although new developments have almost completely stopped there is one front line development which is about to be launched on Alcudia Beach of 15 quality, contemporary style apartments, which will be completed by 2012. Lead in price for a 3 bedroom apartment starts at 1.175 € million to 1,6€ million for the penthouse with private swimming pool.

The North/ Rentals
E&V North specialise in high value short and long term rentals mainly for fincas and large villas and this year the rental market is buoyant. For example a five bedroom villa with pool can command 3,550€ per week in low season and 5,550€ in high season per week. Since 2008 rental yields have dropped (depending on the property) by an approximate average of 20% and in the current climate, it is important that owners realise that they might have to consider offers.

The British tend to dominate the short term rental holiday market and generally German speaking clients are looking for longer term rentals.

NORTH EAST

This is certainly one area of Mallorca where your money can go further. The approximate square metre price for fincas in and around Arta is roughly 30 € per m² and for frontline seaside properties prices range from 500 € – 1000 € per m². For example; a 2 bedroom front line apartment in the fishing port of Colonia St. Pere is on the market for 350,000€.

Property requests and general activity have increased over this time last year and there is more confidence in the market. Prices have not really reduced a great deal in this area because they never reached the highs of areas such as the south west. The market here is therefore more stable and owners are less willing to negotiate.

The average price for a four bedroom villa with views is around 1.7€ million which represents a price decrease of around 10% from 2008. Well located country fincas are holding their prices with minimal price reductions to close a deal. Up and coming areas include Costa de los Piños, which has always been very popular with the Spanish “jet set”. Now large, Spanish owned, family holiday homes are coming onto the market in this area.

SOUTH EAST

The general picture here is similar to the north east where prices have remained relatively stable throughout the last two years. The year started well with sales of a wide range of property from 250,000€ to over 2€ million.

Currently, there is demand for countryside fincas and first line property with most sales around the 400,000-600,000€ range and a few between 1€ and 2€ million. The lower end of the market for townhouses and apartments (which are not front sea line) is still very slow.

Clients are mainly German speaking or Scandinavian. The British are still staying away. Areas with potential include Colonia San Jordi, particularly for frontline seaside property; Porreres – especially hill top locations and Cas Concos.

MENORCA

Menorca, the second largest of the Balearic Islands, has long enjoyed a reputation of providing a tranquil and exclusive holiday residence location. It represents an exclusive “bolthole” in the Mediterranean’s second home residential market and is widely regarded as a secure and safe, long term investment for potential clients.

The market boomed in the past five years, particularly in 2006/7. Since 2008 the global crisis started to affect property prices which have come down by around 15-25% or more in some cases. New development is strictly regulated by local government to maintain the island’s natural beauty and sustain its’ long term growth. The island is easily accessible via air and ferry from the Spanish Mainland.

Currently, demand is focused on well located villas with an average cost of a villa with views of around 3,000 – 4,000€ per m2. The apartment market is still very slow and values are around 2,500-3,000€ per m2.

Coastal areas are the most requested, especially in the south east with easy access to the island’s capital of Mahón together with the residential areas around the other major port of Ciutadella. Frontline property at Mahón and Cuitadella represent good value and the Sant Lluis area is ideal for those seeking the quiet life.

Inland prices are generally lower and because you are never far from the coast on the island, inland areas are attractive for prospective buyers. In addition, the north of Menorca is still less developed than the south and is an interesting area for secluded country fincas and there are still plenty of renovation projects available.

Over the past year there has been increased demand for rental property and this can provide buyers with an excellent way of earning a steady return of between 3% – 5% (depending on facilities and location) on their investment.

Recently, the international market has started to open up again and there has been more interest from German speaking and Italian buyers. The British still account for approximately 20% of the market with interest from Irish buyers.

The island is always looking to open up new markets and next year plans are progressing to bring two direct flights a week from Moscow so Russian buyers could also enter the market.

Palma de Mallorca, May 2010.

The spring sunshine and an early Easter appear to have brought more optimism to Mallorca’s second home residential market according to Engel & Völkers the island’s leading international real estate agents for the quality second home market. All 22 E&V offices on Mallorca report a surge of increased requests and visits over the first quarter with sales up in some areas by 100% over the same period last year.

The overall picture reflects a similar sales pattern to that of 2008 with the same amount of properties sold but values this year have been lower as many properties have discounted their original asking price and strong negotiating is often still required to close a sale.

German speaking and Scandinavian buyers dominate the market at this time. The British are on the island looking but generally are still waiting for more price reductions which are unlikely to materialise at this stage.

“Most buyers are still searching for “the bargain” says Daniel Chavarria Waschke, spokesperson for Engel & Völkers Mallorca; …”but owners have in most cases already reduced prices and would rather sit and wait than succumb to further discounts”.

Banks have started to lend again to non residents for up to 70% of the property value and approximately half of the buyers will use the mortgage option for tax relief purposes. Demand is fo-cused on prime property, mainly villas, well located fincas and penthouses, particularly on the sea-front or with good views.

International, national and local investment continues on the island with Palma’s new hospital near completion; the Palma Congress & Exhibition Centre is due to be completed in 2011; the super yacht designer marina at Puerto Adriano will open in Spring of 2011 and the new Jumeriah Puerto Soller luxury (seven star) hotel will open in Summer 2011.

Around the island:

Palma – Old Town & Portixol

Demand is specifically orientated towards apartments, penthouses and townhouses and supply is limited. The aggressive “bargain” mentality doesn’t help general negotiations because owners will only reduce to a certain level and then no more. A well appointed two bedroom apartment with no views will fetch around 275,000€.

There is always demand for really unique, special properties with either views to the sea or over the old town and/or with outdoor space. These types of properties are not so susceptible to market changes and generally hold their value. Main buyers at present are: Scandinavian, German, Swiss and Austrian – some of them focusing on prime property of around 1-3€ million price level.

Rentals – there is a strong demand for long term rentals (minimum of 12 months) mainly because more mid level properties have come onto the rental market as owners do not wish to further reduce their price which leaves the rental option. More choice means more competition and for this reason rentals have come down in price over the last 18 months by about 10-15%. For example, a two bedroom apartment will now yield 1,200€ per month around 200€ less than in 2007.

Palma – Paseo Maritimo/outskirts
In Palma’s Paseo Maritimo area apartments, which make up the majority of the business, have re-duced in price around 15% over the past couple of years and a two bedroom apartment with sea views will command around 500,000€.

Since 2008 prices have also reduced for villas with views of around 25-30% in immediate outlaying areas such as Bonanova and Genova. The average sale period of property in this area tends to be around 9-12 months.

South West Mallorca

The first three months of this year was the best for sales in three years with good future prospects for the peak buying period of May/June – September/October when generally 50% of all sales are made for the year. Around 60% of all requests are for properties under 1 M € although the average sales price remains around 1 € million and the majority of properties sold are villas or penthouses. There are fewer British buyers than in previous years but those that are here are spending more. The market is currently dominated by German speaking clients.

Rentals-Currently, rental yield for a villa varies between 9-12 €/m2 of constructed area. For top quality properties the yield can increase up to 15€/m2 and top properties can still achieve even more. Well appointed apartments with good furnishings achieve approximately 12€/m2 and top apartments with views can yield 15€/m2. Demand for long term rentals is high and the variety of rental properties available on the market has increased over the past 12 months as more owners look to this option as opposed to selling.

North Mallorca

Easter was fully booked with viewings and lots of property requests and activity. Potential clients are mainly interested in prime properties such as villas and fincas in good locations. Currently sales levels are about the same as this time last year.

The market for smaller properties, and particularly apartments, practically disappeared at the end of 2008 but now this market sector is starting to move again. In the past three months sales of apart-ments have been made across the range from 150,000€ to 600,000€. This is very encouraging and indicates that clients now realise that the time is right to come into the market as prices in the north are currently at their lowest level in approximately five years. For example; a three bedroom apart-ment came onto the market in 2008 at 700,000€ and has just sold for 527,000€.

Throughout 2009 bargain hunters were looking around for the larger properties but at this level wealthy owners will sit and wait. However, vendors at this top end have had to be more realistic over the past 18 months. For example; a property in Bonaire went onto the market in 2008 for 6.5M € and is now on for 4.5M€.

Rentals – E&V North specialise in high value short and long term rentals mainly for fincas and large villas. This year this department has already invoiced as much as they did for the entire 2009 season. For an example a five bedroom villa with pool can command 3.550€ per week in low season and 5.550 in high season per week. Since 2008 rental yields have dropped (depending on the property) by an approximate average of 15-20% and now good offers for a two week rental or more are passed onto the owner, which never happened in the past.

The British tend to dominate the short rental holiday market and generally German speaking clients are looking for longer term rentals.

North East Mallorca
This is certainly one area of Mallorca where your money generally goes further. For example, the approximate square metre price for fincas in and around Arta is roughly 30 € per m² and for front-line seaside properties prices range from 500 € – 1000 € per m².

Property requests and general activity have increased over this time last year and there is more con-fidence in the market. Prices have not really reduced a great deal in this area because they never reached the highs of areas such as the south west. The market here is generally more stable and owners are less willing to negotiate.

For example; the average price for a four bedroom villa with views is around 1.7€ million and this represents a price decrease of around 10% from 2008 and well located country fincas are holding their prices with minimal price reductions to close a deal. Up and coming areas include Costa de los Piños, which has always been very popular with the Spanish “jet set” and now large, Spanish owned, family holiday homes are now coming onto the market in this area.

South East Mallorca

Once again, the picture here is similar to the north east where prices have remained relatively stable throughout the last two years. The year started well with sales of a wide range of property from 250,000€ to over 2€ million.

Currently, there is demand for countryside fincas and first line property with most sales around the 400,000-600,000 range and a few at 1 M€ and 2M€. The lower end of the market for townhouses and apartments (which are not front sea line) is still very slow.

Clients are mainly German speaking or Scandinavian. The British are still staying away.
Areas with potential include Colonia San Jordi, particularly for frontline seaside property; Porreres – especially hill top locations and Cas Concos.

West Mallorca

Sales have been slower in this area than in the rest of the island even though there is a great deal of interest from potential buyers. In the picturesque village of Deia, for example, vendors are less likely to negotiate because of the cachet associated with owning a home in one of the most desirable villages in the Mediterranean. The fact that owners are not accepting offers means that the market is stagnating here. Furthermore, many of the wealthy high profile foreign residents want to keep the sale of their property confidential.

However, in Valldemossa pricing is a little more realistic which provides more scope. Here prices range from around 500,000€ for a well presented townhouse to 4-6M€ for a finca estate with land. Main buyers are Germans, British and Scandinavians and the British are generally more willing to negotiate because of the currency exchange rate.

Along the coast to Puerto Sóller and Sóller there is a similar picture of potential clients making of-fers way below the asking price. Here the average price of a villa with views is around 2€ million and these prices have not shifted that much in the past two years unless there has been a “dis-tressed” sale. A well located 2 bedroom apartment with views can still command around 430,000€.

Says Daniel Chavarria Waschke; “It is impossible to say whether we have hit the bottom of the market. However, around the island the Engel & Völkers offices are expecting serious buyers over the coming months who want to invest in Mallorca this year, so the prospects look good and we are cautiously optimistic for the coming season”.

For more information visit Engel & Völkers Mallorca