Property in North East 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

North East Mallorca Properties

The north east features many areas of out-standing natural beauty against a dramatic backdrop of mountains. The coastline can be wild with large stretches of sandy beaches, isolated bays with crystal clear sea. Throughout the area, you will find typical Mallorcan countryside covered with ancient olive and carob trees, where sheep graze as they have done for centuries. Here is one of the most idyllic spots in Mallorca where you can escape from the strains and stresses of modern day life disconnect and completely relax.

Much of this area remains relatively untouched by tourism development and it offers a great outdoor life with 5 golf courses in the area, sailing, scuba diving, deep sea fishing, cycling, horse riding, walking etc…

The region is varied with picturesque, historic towns such as Arta and Capdepera, which are good for shopping, sight seeing and eating out. There is also a mix of popular holiday resorts such as Cala Ratjada, Cala Bona and Cala Millor along with upmarket, traditionally Spanish, developments of Costa de los Pinos and Port Verd or small fishing ports such as Colonia San Pere, which has great views across the Bay of Alcudia.

The new, fast highway from Manacor has cut travelling times to this area by approximately 20 minutes and this has encouraged clients to revisit the north east where they can still buy affordable frontline property.

The market is currently dominated by German buyers (70%) with an average spend of approximately €250,000 – €950,000 mainly for apartments or fincas. The British account for 15% of the market with an average spend of approximately €300,000, mainly for apartments. Spanish account for 15% of the market followed by a market split between Scandinavians, Swiss, Irish and Belgians/Dutch.

Property is still well priced here. You can still find property from around €150,000 for an apartment to €1.5 million for a luxury villa. The impact of the new motorway links between Palma and Manacor and the new roads between Arta and Cala Rajada have vastly improved the infrastructure of the region and this factor will positively effect on prices in the future.

On the whole, this region was relatively “undiscovered” until a few years ago when prices shot up to as much as 80% in some areas. Last year was one of the greatest jumps in property values which rose by approximately 10-20%, this is reflected in the average spend which was approximately €300,000 in 2005 and increased to €450,000 in 2006.

Rentals are popular in this region, particularly in the spring-summer months and in keeping with overall property values, rentals are still well priced and range from €500 per month for an apartment to €2,000 per month for a finca.

If you want to find an affordable, frontline property you will find it in the north east. The area around the fishing village of Colonia Sant Pere, where Engel & Völkers will be opening a new shop in the spring, provides the ideal location for peace and relaxation.

Historic old towns are particularly in demand and currently Capdepera old town represents great value for first time investors. This year, the local town hall is investing in a new pedestrian area between the market place and the castle, which will make the old town even more attractive.