Buying property in Menorca - Current market developments

2023 was a remarkable year for the real estate market in Menorca. Some of the reasons for the rediscovery of this little Balearic island as a perfect holiday and residential destination, and the increasing interest in local houses, villas, fincas, and apartments, include the mild Mediterranean climate promising more than 300 days of sunshine, easy access combined with increased flight and ferry connections, untouched natural beauty, the active preservation of the island and last but not least, the excellent gastronomy and cultural offerings of the island.

The return to normalcy after the restrictions of the COVID-19 pandemic has also contributed to the increased demand for properties in Menorca, according to the latest Engel & Völkers market report. The majority of buyers coming from mainland Spain and other European countries.

Market report confirms high demand for properties in Menorca

Following a record year in 2022, the demand for houses, villas, and apartments in 2023 on the Balearic island experienced a soft landing, with a transaction value of 5.7 billion euros, last year's revenue was 28% above the 10-year average. Our Engel & Völkers real estate agents in Menorca have observed increased interest in second homes and vacation properties, and to meet this demand, the range of properties for sale has been expanded. The market dynamics remained constant in 2023, and the average prices for houses and apartments on the island increased by 7.5%.

Menorca appeals not only to domestic buyers but also to international clients. In the past year, 51% of buyers were from Spain, particularly Barcelona and Madrid, while 16% were French, 15%  British and 8% Americans. The majority of potential buyers are searching for a holiday home or a second residence as a retreat, to escape the hustle and bustle of their primary residence during vacations.

2023 Property Prices in Mahon, the centre of the island and Ciutadella

One of the most sought-after residential areas in Menorca is the capital, Mahon. Here, the average price for an apartment last year was 333,728 euros, while house prices stood at 1,060,604 euros.

In the centre of the island, which includes Ferreries, Es Mercadal, Es Migjorn Gran, and Alaior, house prices showed a stable to declining trend, while the average asking prices for apartments have risen. Those looking to buy a historic country house with a large plot or a charming apartment in Es Mercadal should expect average prices of 1,094,612 and 399,898 euros respectively.

Ciutadella, the second-largest city in Menorca, has also become more popular in recent years and is now of great importance to the regional real estate market. The asking prices for houses here currently average 1,218,279 euros, while apartment buyers can expect average prices of 360,199 euros.

Real Estate Market Development in Menorca · Forecast for Future trends

Real estate agent Engel & Völkers Menorca predicts that the demand for properties as well as purchase prices will remain stable, and that the improved accessibility to the island from 70 national and international destinations beyond the summer season will contribute to further development of the local real estate market. 

Thanks to numerous qualities such as the preservation of local resources, the protection of the natural environment, and the relaxed island atmosphere, Menorca will remain a sought-after residential destination in the future.

Because the supply of properties in premium locations by the sea is very limited, prices are expected to continue to rise. Another forecast is that the moratorium imposed by the Menorcan government on issuing new holiday rental licenses (ETV) will lead to an increase in value of 15-20% for properties that already have a tourist license.

Menorca is a Mediterranean paradise with numerous leisure opportunities, excellent gastronomy, and a popular holiday destination for tourists and property seekers from Spain and around the world. If you are looking to purchase a house, villa, finca, or apartment in the Balearic Islands, Menorca is an excellent option.