Changing preferences in favour of healthy natural environments in the wake of the pandemic, and significant improvements to the infrastructure and facilities of the south-east corner of Mallorca, have delivered strong results for our real estate office in the area, and bode well for the future.
Look at a map of Mallorca and you see motorways or dual-carriageways heading towards all corners of the island except the south-east corner, where the main road stops half way in Llucmajor. Longer journey times meant the south-east coast was often overlooked by holiday-makers and property-buyers following the roads west and north-west from Palma to established resorts, and leaving the south-east to connoisseurs of the island who treasure the area as an unspoilt gem.
Over the years this has helped preserve the area’s rural charm, laid-back appeal, and reputation for discretion that has long been highly prized by the area’s devotees, especially wealthy owners of rural estates tucked discreetly away in the beautiful Mediterranean countryside.
However, a recent upgrade to the road from Llucmajor to Santanyi now makes the south-east easier than ever to reach, with the drive-time from Palma airport cut to around 40 minutes. Easier access typically increases investor interest, which partly explains why 2021 was such a good year for the south-east, and that momentum appears to have continued in the first half of this year.
Changing requirements favour the south-east of Mallorca
The impact of the 2020 coronavirus pandemic has also fueled demand for homes in the south-east of Mallorca, as families began to prioritise spacious homes and healthy, natural environments more than ever. The changing requirements have played to the area’s natural strengths, as the south-east is a perfect destination for digital executives and their families looking to relocate permanently or part time to a Mediterranean country life with first-world benefits like security, and good public services, all within striking distance of an international airport.
The opening of high-end local establishments garnering international attention has also helped cultivate demand for holiday-homes in the area. Last year the Can Ferrereta hotel in Santanyi opened to a blaze of international interest as it won awards like the Condé Nast Traveller ‘2022 Hot List’ and the National Geographic ‘2021 Best Boutique Hotel’. The hotel has helped lift the profile of the area with its classy design, handsome grounds, and private contemporary art collection of paintings and sculptures that decorate the rooms and grounds. Upmarket establishments like Can Ferrereta help cultivate property-investor demand over time.
Better transport links, new establishments, and changing buyer tastes all build on the timeless appeal of the area’s beautiful countryside, picturesque towns and villages, and stunning coastline. Environmental protection has always been a priority for the south-east, which helps explain the largely unspoilt landscape and absence of over-development on the coast. The south-east also has some of the best beaches in Mallorca, including the world-famous Es Trenc beach, and the beach coves of the Mondragó natural park, which have just been highlighted as some of the best in Spain by the Spanish daily El Pais.
With all these factors working in the south-east’s favour, the holiday-home market has gone from strength to strength in the last year and a half in the wake of the pandemic. At Engel & Völkers Mallorca Southeast 2021 was a milestone year for us, especially for sales of rural properties and renovated townhouses – the latter with pools selling particularly well. We have also seen constant demand for fincas and villas in Campos, Porto Colom, Ses Salines, and Colonia San Jordi, as well as family homes in Sa Rápita and Es Trenc. Buyers are moving faster than ever when they have found their dream home, and the majority are cash buyers, which just illustrates how the area attracts upmarket buyers who don’t need financing. This helps give the market strong foundations, so that when a crisis comes along, as they do from time to time, you rarely, if ever, see distressed sales on the market in the south-east of Mallorca.
Driven by strong demand, and supply constraints, houses in the most-sought after area around Santanyi have increased to an average price of 1.8m euro this year, whilst the average sales price for an apartment in the coastal area between Cala Murada and Cala Llombards is now up to around 400,000 euros. It is also the case that house and apartment prices have been rising in all areas of the south-east.
As new development has always been highly restricted in this corner of Mallorca, there is strong interest in new projects when they do come to market. This is the case in the traditional fishing village of Cala Figuera – probably one of the most beautiful fishing villages in Mallorca – where Engel & Völkers is marketing new villas built with the environment in mind. This stylish new development, located within a stone’s throw of the sea, is a great example of building with sustainable features and materials. Currently we have one 3-bed, 3-bath, 424 m2 new villa with a pool and sea/lake views available for 2.6m euro. Visit Engel & Völkers Mallorca Southeast and search for reference number W-009XMJ for more information, pictures below.
Summarising the strong performance of the holiday-home market in the last year and a half, Nils Haase, Managing Partner of Engel & Völkers Mallorca Southeast, who has been 29 year with Engel & Völkers, and 20 of them in Mallorca says: “Our area has always been known for its natural beauty, open rural landscapes, and stunning coastline, and since the pandemic these factors have become even more important to clients. The balance of supply and demand also drives the market and means that clients make their decision to buy faster than in previous years to secure their ideal home. Furthermore, they buy with confidence knowing that their investment is safe in the long-term whilst they enjoy all the benefits associated with this beautiful corner of Mallorca.”
Please get in touch to find out more about property in this delightful corner of Mallorca.