Mallorca is regarded as a safe real estate investment port

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Good news for holidaymakers and property owners on Majorca: The popular Balearic Island will be open to international visitors again from July 1st onwards, without quarantine travel restrictions. Florian Hofer, Managing Director of Engel & Völkers on the Balearic Islands, welcomes the easing of the measures: “The Spanish government’s decision sends out a positive message to the holiday home market. Since 2012, international buyers have accounted for 43 percent, on average, of the total volume of property transactions on the Balearic Islands. The property sector accounts for no less than one fifth of this region’s entire gross domestic product. This makes our industry the second most important driver of the Balearic economy directly after tourism.”

Engel & Völkers Mallorca reports positive business development 

The interest in residential property on Majorca has not receded as a result of the COVID-19 pandemic. Over recent weeks, property transactions have been closed and notarised with the help of authorised and legal representatives. From the beginning of the lockdown on 15 March up until 29 May 2020, Engel & Völkers Mallorca reports a sales transaction volume of 63.3 million euros in total. The average sale price for properties across the island has risen to 1.8 million euros (2019: 1.6 million euros). “We are confident that the property sector will continue to see positive growth with the start of the summer season. There will be a catch-up effect over the coming months, especially in the segments for premium homes and new builds. Since lockdown began, we have signed new option contracts worth a total of 22.3 million euros in the southwest,” says Hans Lenz, Managing Director from Engel & Völkers Majorca Southwest.

Viewing of a villa or a house thanks to innovative technology

The strict contact and travel restrictions in place have given a further boost to the industry’s online offers and services. Very early on, irrespective of the outbreak of the coronavirus, Engel & Völkers begun investing in the development of digital tools and IT products. An investment that has paid off: “During the lockdown, we were able to take our clients on live video viewings and virtual 360-degree tours. The feedback to this from our clients throughout Europe has been very positive indeed,” says Florian Hofer, adding: “We expect to be using digital tools to successfully close property sales in the future.” A large number of prospective buyers from abroad have already scheduled in-person viewing appointments on the island for the month of July.

The desire to own a property in Mallorca is strengthened by COVID-19