Menorca Property

2008 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

This is the second largest island of the Balearics and only a half hour plane ride from Mainland Spain which is why it has always been popular as a holiday hideaway for the Spanish. The island has its own airport at Mahón, which is currently being extended.

The island’s beauty, beaches and pretty coves also make it a popular location for yachts. In 1993 UNESCO declared the whole island a Biosphere Reserve due to the island’s historical and environmental importance in the Mediterranean. There are some really remarkable archaeological sites and settlements from the Talaiot age.

Although a popular island for tourists the local government has taken great care to develop its tourism industry in a sustain-able way. The main port of Mahón is picturesque and dotted with restaurants and bars. There are projects planned to extend the sports harbour of Cuitadella.

Here the property market has seen the huge increases in the last five years and 2007 was still extremely buoyant with increases of up to 20% for top properties. However, as many vendors are not in a hurry to sell, the market has slowed down and most property is taking around a year to 18 months to sell. Villas, apartments and townhouses are the most requested properties with an average cost of a villa of around €1 million plus.

The main buyers here are Spanish (55%), although recently this market has tailed off and there has been more interest from the British, Germans and Italians and the market appears to becoming more international. What buyers spend varies but most will spend from €500,000 up to €1 million and the majority are looking for a holiday home.

Generally the coastal areas are the most requested, especially in the south east with easy access to the island’s capital of Mahón. Inland prices are lower and because you are never far from the coast on the island, this area becomes interesting for prospective buyers. In addition, the north of Menorca is still less developed than the south and could be an interesting area for secluded country fincas.