Majorca: Property demand at an all-time high

Advancing vaccination programs and a desire to enjoy the Mediterranean lifestyle are all factors reflected in the dynamics of Majorca’s residential real estate market. Having brokered a total transaction volume of approximately 341 million euros in the first six months of the financial year 2021, Engel & Völkers Majorca has reached the end of the first half-year on a high note despite the ongoing pandemic (1 HY 2020: 168 million euros). “The transaction volume for real estate has doubled compared to the same period last year. We are on course for a financial year with the highest turnover in our company’s history,” says Florian Hofer, Managing Director of Engel & Völkers in the Balearics. Driving factors in this development include an increased willingness to buy in the premium segment and a shorter time period to sell properties. Between January and June 2021, the average sale price recorded by Engel & Völkers for residential properties in Majorca was 1.68 million euros (1 HY 2020: 1.63 million euros).

International buyers are boosting the market for luxury real estate

“In some cases the marketing period for properties has halved,” observes Nils Haase, Managing Director of Engel & Völkers Majorca Southeast, taking, for example, prime locations in the southeast of the island into consideration. The events of the past year have led to a very dynamic market development in the premium segment. “Some of our clients have now decided to relocate or even downsize their primary residence to be able to invest in larger holiday apartments and houses in Majorca. The excellent infrastructure for remote working and the existence of international schools mean that professionals and families in particular are tending to spend more time than ever at their second home in Majorca,” Florian Hofer says. The increase in enquiries from prospective buyers also reflects the strong level of interest in real estate on the Balearic Island: In the first half of 2021, the number of online client enquiries received by Engel & Völkers grew by 275 percent over the same period last year.

These positive half-year performance figures give the experts at Engel & Völkers confidence that this positive business trend will continue through to the end of the year. “Once again, the island has proven its status as a haven and a safe place to invest in real estate,” says Florian Hofer, who adds: “Our clients trust in our 30 years of market expertise on the island and are pressing ahead with their property plans. As the travel and tourism industry gradually returns to business as usual, real estate transactions on Majorca are set to remain consistently high.