South West Mallorca property report 2007

Portals Property

Portals covers one of the most sought after areas in this region and is ideal for people who want to enjoy a great holiday on the island in a true multinational and cosmopolitan atmosphere at any time of year. It offers a choice of top international hotels, a variety of restaurants, bars and nightlife, much of which is concentrated around the ever chic Puerto Portals. Other facilities include golf courses, marinas, international schools, shopping etc…

Report prepared by local estate agents

The most popular areas tend to be Bendinat, Portals and Costa den Blanes and investors can still look for good returns in the areas of Old Bendinat, any frontline apartments – particularly in Portals, Costa den Blanes and Sol de Mallorca.

Santa Ponsa Property

This resort has grown up around one of the most beautiful bays on the island and in recent years, major investment has been made to upgrade the promenade area around the coastline. A few minutes from the sea are three top golf courses and the Santa Ponsa Country Club, which is a good meeting point for visitors and local residents.

Puerto Adriano will undergo a major extension programme this year adding 80 moorings and ensuring that larger vessels can get into the Port. In addition, a new shopping and restaurant area is being developed alongside similar to Puerto Portals.

The areas of Son Ferrer and the mountain area of Son Font are still good opportunities for investors in 2007.

Paguera – Capdella – Cala Fornells Property

This area stretches from the coastal resort of Paguera up to the mountain village of Capdella. Cala Fornells is currently much in demand because of the wonderful sea views and partial direct sea access. Clients are particularly attracted to the Aldea development at Cala Fornells, which was designed by the Russian architect, Pedro Otzoup who has many examples of his work along this coastline. The new motorway infrastructure means that there are now four access routes to Paguera which is seen as a benefit by prospective clients.

The reasonable pricing structure, particularly for apartments, in this area demonstrates the potential growth opportunities. Paguera is especially attractive for “first time” second home buyers who want a seaside investment at an economical entrance price.

Andratx and Puerto Andratx Property

This is regarded as one of the most valuable areas on Mallorca and is certainly the most fashionable. It continues to attract international personalities, politicians and artists. Andratx is also attractive because it is a year round resort area and although quieter in the winter months, it still retains its life and charm.

There has been a great deal of investment recently in the infrastructure of this resort improving the roads and linking the port and Andratx town via a new fast motorway. Local agents estimate that the new motorway system will increase sales by approximately 10%.

In the past few years it has become increasingly difficult to find plots in good locations so now older properties in good locations are now being reviewed to refurbish or knock down completely and start again.

Even though the average prices are high there are still some areas which are still relatively well priced including Cala Llamp, Cala Moragues and San Elmo.

The stunning wild and rugged western coastline of Mallorca encompasses some of the most famous villages on the island including Deia and Valldemossa where many artists and international celebrities have bought homes. The villages of Banyalbufar and Estellencs feature traditional Mallorcan properties (fincas) often with breathtaking views over the sea. Inland, villages such as picturesque Fornalutx are popular with clients who love the irresistible combination of the stunning mountain landscape, citrus groves and the traditional Mediterranean lifestyle.

In 1997 the Sóller tunnel opened which overnight meant easy access to the historic town of Sóller where its church tower and roof tops are set against the dramatic mountain range and surrounded by orange and lemon groves. Stylish boutique hotels have opened up in this historic town close to the popular town square alongside new restaurants and cafes.

A few minutes tram ride away, the Port of Sóller is currently undergoing a major new refurbishment programme where in the past four years more boutique, and larger international hotels, have opened up featuring some excellent restaurants.

This area is fast becoming more cosmopolitan and although obviously quieter in winter, both the town and port enjoy a lively atmosphere.

The Buyer

The British dominate the market in these areas accounting for approximately 45% of the market, with 30% Germans, 17% Spanish and the rest of the market divided up between Scandinavians, Belgians, Swiss and Irish. These clients tend to spend a lot longer in their properties than in other areas – between 3-6 months.

The improved access to Palma and the airport via the new motorways and Soller tunnel, and more recently the new dual carriage between Palma and Esporles, has really boosted sales.

Property Values

Some of the most dramatic price increases have been in this area and this is mainly due to the vastly improved infrastructure. In the past five years prices, on average, have increased by approximately 80% plus. In the past year price increases have still been on the rise at around 20% for apartments and 18% for villas reflecting the continued demand.

Rentals

In this area approximately 20-25% of all clients let out their properties which are popular with visitors who enjoy hiking – especially in almond blossom time, bird watching and being part of the traditional “fiestas”. Rental yields are good particularly for country houses and villas that would expect to fetch approximately €3,000- 5,000 per month.

Tips for Investors in 2007

For prospective buyers seeking the authentic Mediterranean lifestyle, explore the villages such as Banyalbufar and Estellencs which still represent good value and offer more property for the money.

For people looking for a project, there are still some fabulous historic houses which occasionally come onto the market in this region.

Areas which still have a great deal of potential for the investor include Puerto Soller, Lluc Alcari (just outside Deia) and Valldemossa, where the new dual carriageway link to Palma will affect property prices.

Portals 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 2,000,000 38% 9% 10,000 6,000
Villa no views 4 350 1,500,000 0% 4,900 3,500
Apartment with views 2 100 500,000 38% 9% 2,500 1,800
Apartment no views 2 100 375,000 0% 1,500 1,000
Country house 3 350
Townhouse 3 180 600,000 9% 2,100 1,500
Plot price €/m2 650 38% 15%

Santa Ponsa 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 1,400,000 10% 5,250 4,200
Villa no views 4 350 1,100,000 10% 4,200 3,500
Apartment with views 2 100 400,000 20% 1,800 1,300
Apartment no views 2 100 375,000 20% 1,100 800
Country house 3 350 850,000 10% 6,300 2,800
Townhouse 3 180 600,000 15% 2,350 1,500
Plot price €/m2 400 20%

Paguera 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 1,650,000 4,900 4,200
Villa no views 4 350 975,000 4,200 3,500
Apartment with views 2 100 405,000 12% 1,200 1,100
Apartment no views 2 100 290,000 12% 900 700
Country house 3 350 1,600,000 9% 4,200 3,500
Townhouse 3 180 1,900 1,100
Plot price €/m2 330

Puerto Andratx and Andratx 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 2,500,000 50% 9% 6,000 4,200
Villa no views 4 350 1,500,000 35% 4,900 3,500
Apartment with views 2 100 650,000 50% 13% 1,400 1,000
Apartment no views 2 100 450,000 35% 1,000 700
Country house 3 350 1,750,000 60% 6% 4,200 3,000
Townhouse 3 180 650,000 1,800 1,350
Plot price €/m2 500 100% 20%

About Mark Stücklin

Mark Stücklin is a Barcelona-based Spanish property market analyst, and author of the 'Spanish Property Doctor' column in the Sunday Times (2005 - 2008). He can be reached by email on ms@spanishpropertyinsight.com. All articles published in good faith as a general guide but no substitute for professional advice. Please read the SPI disclaimer

Leave a Reply