Llucmajor Mallorca Property report 2007

Llucmajor is one of Mallorca’s largest regions located on the south coast. It offers everything from the historic town of Llucmajor to tourism resorts along its 43 kms of coastline with five main beaches and beautiful countryside inland. Rural areas are generally quite flat with large areas of fields and open countryside free of buildings or industrial developments mainly because there are many large agricultural farms and fincas in this area.

Report prepared by local real estate agents

It is an excellent area for sports with two golf courses, almost 200 kms of dedicated cycling routes, sailing and watersports facilities and a wide variety of walks through the mountain areas such as Randa or along the coast. This region provides excellent value for money considering its proximity to Palma – now even closer because of the newly opened motorway. Local agents estimate that this factor has increased sales by approximately 10%.

The Buyer

The German market has been buying here for some time and accounts for 30% of all sales. However, the British only account for 10% of sales although interest from British clients is increasing. The rest of the market is made of Spanish, Scandinavian, Irish, Swiss etc… The most requested urban areas tend to be on the coast: Son Veri Nou, Cala Blava and Maioris Decima. Popular rustic areas include: Vista Alegre, Son Monserrat and Puig de Randa.

Property Values

In the last five years as this area has been “discovered”, prices have shot up by as much as 110%. In 2006 prices steadily increased at around 6-10% with the greatest increases for apartments particularly frontline or with good sea views.

Recently clients have started to show more interest in the area mainly because here frontline property to the sea is still affordable in comparison to other areas of the island. The average price of an apartment costs around €295,000 and a substantial finca around the €1 million mark.

Tips for Investors in 2007

The region is wide open for property investment as practically everywhere still represents good value in comparison with other established residential areas of Mallorca. Frontline property is always a good investment and on this coastline you have the added benefit of excellent views of Palma Bay, particularly by night.

Old town houses in the centre of Llucmajor, especially the area around the town hall, are also well primed for investment. Local agents predict a similar situation as existed in Palma 15 years ago when there was little demand for these types of properties and now prices have shot up.

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