 Inland and Country property in Mallorca
2007 report
This report was prepared by Engel & Völkers, a real estate agency with offices in many of Spain’s most popular destinations. It is reproduced here with permission. More information on Englel & Völkers
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.
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
Last year, Engel & Volkers opened a new
shop in Inca, which 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. |
