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 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.
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.
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.
Menorca 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||1,750,000||–||–||–||–|
|Villa no views||4||350||900,000||–||–||–||–|
|Apartment with views||2||100||375,000||–||–||–||–|
|Apartment no views||2||100||280,000||–||–||–||–|
|Plot price €/m2||–||–||230||–||–||–||–|