Engel & Völkers Licence Partner Mallorca Southwest I Palma SW I Portals I Santa Ponsa I Andratx > Blog > Majorca property market: Stable prices and high season for sustainability

Majorca property market: Stable prices and high season for sustainability

The real estate market on the popular Balearic island is profiting from the financial strength of European buyers and is undergoing a significant boom in demand at the moment. In Q1 2021, Engel & Völkers Majorca recorded a 66 percent increase in online client enquiries compared to the same period last year. “This all-time high in enquiries from prospective buyers reflects the desirability of refined living on Majorca and the security the island brings. The market for luxury property is resilient and the prices remain stable, even in times of challenging economic turmoil,” says Florian Hofer, Managing Director of Engel & Völkers on the Balearic Islands, adding: “The coronavirus has seen the issue of sustainability on the island shift even further towards centre stage. Property clients are increasingly looking for homes for their own private use. They are also becoming more environmentally aware and this factor is increasingly guiding their investment decisions.” 


Engel & Völkers ended the last financial year on a high note, with a transaction volume of 410 million euros. The slight decrease in transactions compared to the previous year (2019: 470 million euros) can be attributed both to travel restrictions and the limited availability of properties on the market. The average price of properties (including new development projects) brokered by Engel & Völkers has risen to 1.6 million euros (2019: 1.5 million euros), demonstrating Majorca’s strength as a premium real estate market and safe haven for private buyers and investors alike.


 Port Andratx
- Average Prices Engel & Völkers Mallorca

Palma de Mallorca: Living in a Mediterranean setting  

The island’s capital is benefiting from major investments in modernisation projects, as well as the realisation of more environmentally friendly mobility concepts. This is enhancing the overall appeal of Palma de Mallorca, especially among those clients looking for a sustainable home in the Mediterranean with long-term potential and a high quality of life. Last year, the average asking price for apartments in the prime location of the Gènova district on Palma’s outskirts even increased to 1 million euros, while average prices in the prime locations of the historic Palma Old Town for comparable properties stayed at a high level of 800,000 euros. In the trendy Portixol district, average prices for apartments range from 700,000 to 800,000 euros. Searching clients have a primary interest in penthouses and apartments with either a terrace or balcony. New builds featuring sustainable construction and the highest quality standards are also in strong demand.

Apartments in Palma de Mallorca

Southwest and Son Vida: Luxury retreats as year-round residences

“The Covid-19 pandemic has triggered a fundamental shift towards sustainability being regarded as a key strategic undertaking and an important competitive factor in a top Mediterranean destination offering a year-round quality lifestyle,” says Hans Lenz, Managing Director of Engel & Völkers Majorca Southwest and President of the Mallorca Preservation Foundation. The most expensive and consistently sought-after locations on the island include Port Andratx, Santa Ponsa, Bendinat, Portals and Son Vida. 

In 2020, villas in the upmarket harbour town of Port Andratx reached average asking prices of 4.3 million euros. In the southwest, luxury properties with sea views that combine modern architecture and Mediterranean elements are particularly sought after. Families and business professionals are increasingly drawn to the island all year round, thanks to a wide range of international schools, excellent modern medical care and communication technology. The trend towards permanent residency in the most exclusive district of Palma is also evident when it comes to clients looking for a home in Son Vida. This luxury villa community with its renowned golf courses draws both affluent families and couples, and recorded average asking prices of 4.7 million euros last year. 

Stable prices for residential and holiday properties in all regions of the island 

“Besides the stable retention and long term appreciation of property values, it is above all the gains to be made in people’s quality of life that makes buying a residential or holiday property on Majorca so appealing,” says Christina Deutsch, Managing Director of Engel & Völkers Majorca Central & South. The most expensive and popular real estate location at the centre of the island is Santa Maria where the average price for houses has risen to 1.85 million euros. 

The pandemic has seen a growing preference for houses and apartments with ample living space and large outdoor areas overlooking the Mediterranean or the Tramuntana Mountains. Buyers with more of an affinity with rural Majorca often look for properties in the traditional coastal resorts and historic villages to the west of the island. Country houses and finca estates in the region of George Sand and Deià commanded average prices of 2.9 million euros in 2020. 

In comparison, the north region of the island offers buyers more property for their money: In the region of Puerto Pollensa and Alcùdia, the average price for houses ranges between 1.5 and 2.5 million euros. In prime locations near Artá and Colònia St. Pere in the northeast, villas and fincas with average prices of 1.7 million euros also offer potential for appreciation in value. In the region around Cala Blava and Son Veri Nou in the south, the average asking price is 1.6 million euros. In the southeast, Santanyí and coastal areas around Cala Llombards and Porto Colom are popular. Fincas on the market in these locations have average asking prices of 1.65 million euros.


Luxury real estate in Mallorca

European clients showing a strong interest and readiness to buy  

Buyers from Northern and Central Europe dominated the market on the island in 2020: The majority of Engel & Völkers clients come from Germany (63 percent), the UK (12 percent) and Scandinavia (6 percent). Spanish buyers make up 8 percent of transactions, with buyers from Switzerland attributing for 3 percent and Austrians 2 percent. “The desire to travel has intensified during the lockdown and we are seeing that buyers are now quicker to make a decision to sign a contract after viewing a property. Travel restrictions have meant that virtual property tours have established themselves as an essential part of the buying process,” says Nils Haase, Managing Director of Engel & Völkers Majorca Southeast. In this part of the island, the transaction volume generated by Engel & Völkers in 2020 rose considerably by 30 percent over the previous year. Engel & Völkers carried out 27,000 virtual 3D tours and 300 live video viewings in total last year.

Outlook: Majorca offers long-term prospects and investment security  

Considering the high number of client inquiries at the start of the year, and with the experience gained from past lockdowns, the experts at Engel & Völkers are confident that Majorca will continue to develop on a positive course. “In 2020, the market for premium properties was particularly buoyant, with sales prices ranging between 8 and 12 million euros. Wealthy clients tended to invest in properties in a price category where trends are separate from the general economic cycle,” says Hans Lenz. “Past recessions have shown us that real estate in Majorca’s prime locations is a sound investment due to its value retention, and the resilience that comes with that”, concludes Florian Hofer. Anyone investing in a property on Majorca, be it as a capital investment or a holiday home, is set to benefit from a good mix of stability in value and the emotional returns of residing in the property oneself. 


You can read the full Engel & Völkers Market Report 2021/2021 for Mallorca here:

 Port Andratx
- Market Report Engel & Völkers Mallorca
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