 Property in South 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
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 and the local Engel & Völkers shop
anticipates a further sales increase up to 30%.
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. |
