The year 2015 was characterized by growth, a trend that had been noted in the previous year and that is set to continue in 2016. The international clientele, which has recently been joined by more American and French buyers, is primarily interested in luxury properties. “We have observed that these sophisticated customers appreciate high standards of building quality and often choose new-build properties in prime locations”, explained Luis Heymann, Managing Director of the Palma-based Finest Selection Group. The southwest continues to be one of the most popular regions, where top properties are selling for over 5 million euros, according to Heymann.
In the new-build sector, land prices naturally still play a key role. In the southwest of Mallorca, the price ranges from 5,240 euros for plots of less than 1,000 m² to 8,450 euros for plots over 10,000 m². Of particular interest to investors are the surcharges paid for an ocean view. A property with unobstructed views of the Mediterranean costs on average 20 percent more in Mallorca than a property with comparable facilities. In the highly desirable coastal regions of Calvià and Andratx, the “ocean view plus” is as high as 46 percent.
As a result, there is a greater focus on the development of the interior design sector. Well-known interior designers have settled on the island and serve an international clientele.
There is also currently a strong interest in investments in the luxury hotel segment. Exclusive boutique hotels are springing up in the old town of Palma alongside new five-star hotels in the north of the island. The Hyatt resort in Canyamel has already celebrated its soft opening. In Puerto Portals, the Portals Hills Boutique Hotel, developed by Luis M. Heymann and his Finest Selection Group, now sets a new accent in Miami style with exceptional luxury and comfort.
As an optimum location for property investment, Mallorca was able to play to its tried and tested strengths again in 2015. The issue of security is currently more important than ever. While tourist destinations in the Middle East are reporting a sharp decrease in visitor numbers due to the terror threat, Mallorca anticipates another record season with an expected 14 million tourists.
In addition, Mallorca continues to offer its “classic” benefits, which ensure great stability in the island’s property market: Good transport connections with all European cities, the variety of authentic villages, the wild and romantic cliffs on the west coast, more than 200 beautiful beaches and bays, the walking paradise of the Tramuntana Mountains and the Mediterranean city of Palma as its capital.
From a culinary perspective, the island offers tremendous variety and quality. The current trends include eating out at the market. The market stalls have long since changed from being a secret tip to a popular meeting place for gourmets, all based on the premise that the food is “simple and good”. However, upmarket and award-winning cuisine has also enjoyed a huge increase in popularity. A total of seven restaurants on the island have now been awarded coveted Michelin stars.
Where the international clientele of Majorca are concerned, the medical facilities are playing an increasingly important role. Hospitals such as the Son Espases in Palma, the Palma Clinic and the regional hospitals in Inca and Manacor offer an international medical team and high health standards. In the public system, modern hospitals have been built and have attracted doctors from all over the world, who view it as an interesting place to work.
Any families looking for a luxury home in Mallorca require not just first class medical provisions but also outstanding educational facilities. A dozen or more international schools are just part of the wide range of educational options in Mallorca that comply with international standards. No wonder more and more families are deciding to move to the Mediterranean island.
The largest of the Balearic Islands has been gradually losing its image of sunshine and beach tourism and now offers an unbeatable range of leisure activities in many areas. Sports enthusiasts are flocking to the island in growing numbers, either on the land for hiking and biking or on the water for yachting and sailing. High class sporting events with international stars are now regular fixtures on the island’s calendar. These include the international ladies’ tennis tournament, the Mallorca Open, which premiered in Santa Ponca and even attracted a top ten player. Visitors looking for cultural highlights will also find plenty to enjoy in Mallorca. International classical music stars, celebrity DJs like David Guetta and disco queen Gloria Gaynor will all be performing here in 2016.
The infrastructure has also visibly improved in the last few years. Mallorca‘s cycle paths and road network have been constantly expanded in recent years, making many places much easier to reach. Work is currently in progress on a new connection between the motorway to Inca and the airport motorway. The stretch from Palma to Campos is also being extended, taking it to the famous Es Trenc beach with its Caribbean-style blue water.
Investors who want to play safe should opt for Palma or the surrounding area, or the southwest of the island. Prices there for luxury properties remain at a fairly constant average price of 4,000 to 5,000 euros per m², with the trend rising slightly. It would therefore appear that in 2016 there are still good reasons to invest in property ownership in Mallorca.
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