 Menorca Property
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
Menorca Properties
Menorca has long been a favourite with
wealthy investors from the Spanish
Mainland for some time; they are
attracted by the island’s unspoilt beauty and
relaxed peace, plus easy access from the
Spanish Mainland. In the past few years outside
investors have followed suit which has had a
dramatic effect on property values.
The island has two main towns; Mahon, which
has been the capital of Menorca since the British
moved it from Ciutadella in 1721 and it became
the capital mainly because it has one of the
largest natural harbours in the world. This factor,
coupled with its’ location in the Mediterranean,
has made it a strategic stronghold for many
nations throughout history.
At the opposite end of the island, Cuitadella is
also a major town and the original capital of
Menorca. As you would expect, it is steeped
in history and features beautiful architecture
and is the nearest port to Mallorca. The maze
of winding cobbled streets and alleys provide
a wonderful atmosphere while meandering
amongst the wide range of little bars and
restaurants that are tucked away. Ciutadella is
also renowned for its vibrant summer fiesta of
“San Juan” with the famous “dancing horses”.
Menorca is easy to explore, clean, hospitable,
almost crime free (locals still leave their doors
unlocked), with the wonderful Mediterranean
climate visitors and locals alike can make the
most of the golf course and 10 marinas, which
are very popular during the summer and the
warmer winter days.
Access to this island has improved dramatically
in recent years with regular ferry services and
flights from the Spanish mainland or Mallorca
and international fights now all year round,
with daily flights in high season from several
destinations in Europe including the UK,
Germany.
The Buyer
The majority of buyers at the moment are Spanish
(75%), British (20%) and German (5%). Often
buyers will invest in the island as a primary
residence and others visit several times a year.
The average spend is around €750,000. Property
on or beside the sea is the most requested and
clients are mainly looking for apartments, villas
or country fincas. The most requested areas are
Binibeca, Mahón (particularly with the Spanish
and the British), Es Castell and Sant Lluis due
to their proximity to the airport. However, no
matter where you are on the island, the airport
is only an hour away at the most.
Property Values
The size of the island limits the amount of
development for both infrastructure and property.
In recent years, Menorca has enjoyed a buoyant
property market with large price increases in
the region of 50% and more. However, last
year this situation began to stabilise and it is
anticipated that prices will start to level out in
2007 and then increase at a more sensible rate.
This market trend will create a more agreeable
negotiating environment for buyers.
Rental Market
Approximately 30% of clients are keen to let
their properties and the majority of rentals are
concentrated in the summer season as there is
little demand in the winter. Long term rentals are
buoyant at the lower end of the rental market.
Tips for Investors in 2007
Rural areas of Menorca are still worth investigating
and because of the proximity to the sea;
clients are now more inclined to look inland.
Furthermore, as prices stabilise, there are more
opportunities throughout the island. |
