Over the past 5 years a complete regeneration project has restored Alcudia’s historic old town which is now closed to traffic The ancient stone walls of the town now house stylish restaurants, bars, shops and boutique hotels, which have opened up along the main streets. In addition, the local town hall has bought up old buildings and turned then into cultural locations. The town also has a full international cultural calendar centred around its own auditorium.
This report was written by local estate agents.
Puerto Alcudia and its marina have been completely remodelled with one of the main features being a smart new promenade. The Alcudia Marina has undergone an extensive refurbishment programme and now features moorings for over 700 yachts with full onsite facilities.
The Bay of Alcudia features one of the largest beaches on the island and is a great family location. It is also ideal for nature lovers, walkers and pleasure craft. The beaches around the coastline of Bon Aire feature crystal clear water and clean white sand. The Alcanada Golf Course, part of which borders the coastline with fantastic views, is popular year round. The area also has a good range of hotels and now good access. Towards the end of 2006, the new highway connection of the existing motoway from Palma/Inca to Puerto Alcudia was completed. This has saved approximately 20-40 minutes off the journey from Palma and is having an impact on property values. Now clients can easily reach their property in approximately 35 minutes from the airport.
The main market is equally split between the Germans, British and Spanish, who spend an average of €600,000 – €800,000. The rest of the market is made of up of Scandinavians, Irish and French. The most requested properties are villas or country fincas.
In this area clients visit between 2- 4 times per year spending an average of 6 weeks in their property. There is a truly cosmopolitan atmosphere here particularly in the summertime.
The demand generally for all types of property has gone up by 25-35% in the last year. This is due to a combination of factors including easy access, more property for the money and public investment in local infrastructure. Over the past five years prices have increased by approximately 50-60%. According to the local agents the average price increase in 2006 was approximately 10%.
Approximately 50% -70% of clients buy with the intention of renting out the property at some stage. This area is very popular with families and makes an excellent investment for holiday letting if all the paperwork is in place. In high season clients can expect rental yields of up to 3,000 € per week for a finca (for licensed holiday lets). Properties with seaviews can increase this rental rate by an estimated 30%.
Tip for Investors in 2007
Although prices are still increasing here, property prices are still generally lower than in the Pollensa area. Areas worth investigating that still offer good value include: Lago Menor, Sta. Margarita, Muro, Buger and Campanet.
Areas that definitely worth looking at include Bon Aire and moving along the coast to Son Serra de la Marina.
Puerto Alcudia Property Prices
|TYPE||BEDS||M2||AV. PRICE €||PRICE INCREASE 2001 – 2005||PRICE INCREASE 2006||€ AV. MONTH RENT HIGH||€ AV. MONTH RENT LOW|
|Villa with views||4||350||1,500,000||30%||10%||3,500||2,000|
|Villa no views||4||350||850,000||30%||10%||2,700||1,200|
|Apartment with views||2||100||300,000||30%||10%||900||700|
|Apartment no views||2||100||220,000||35%||10%||800||500|
|Plot price €/m2||–||–||350||60%||10%||–||–|