Playa de Palma in Mallorca is undergoing a transformation into a prime city beach, according to agents, and the property market is expected to benefit.
The hotspot on Mallorca’s Mediterranean coast has long been a popular destination for holidaymakers, but consistent demand from property buyers and the area’s sophisticated infrastructure are turning Playa de Palma into an upmarket residential address.
In an effort by the Palma Beach Consortium to enhance quality tourism on the island, the 5km stretch of coastline is now being rejuvenated with millions of euros being invested in the upgrading of hotels, restaurants, cafes and shops. 10 minutes from the centre of the city and the island’s new Congress Palace, Palma Beach is quickly evolving into an area with premium residential properties with beside the sea with four-star and five-star hotels and excellent sports facilities including a golf course and two marinas.
“Playa de Palma is currently undergoing transformation into a quality city beach area on a par with urban beach regions such as Miami South Beach,” says Terence Panton, Managing Partner of Engel & Völkers Palma Beach, which has just opened in the area. “It’s great for this particular region of the island to experience such a renaissance.”
The office will be brokering prime residential property between the resorts of Can Pastilla and El Arenal.
Engel & Völkers estimates that this period of revitalisation is set to continue over the next five to ten years, forecasting a “real boom” on the property market.
“We forecast that prices will rise significantly over the next three years. With this in mind, now is a good time to invest in property here.” adds Panton.
“Playa de Palma is one of the few areas of coastline on Mallorca where property prices remain moderate, in spite of the close proximity to the sea, the international airport and the capital.”
Prices for freehold apartments in need of renovation currently start at around 1,500 euros per square metre. Premium apartments with sea views are fetching up to 5,000 euros per square metre. Villas currently cost upwards of 500,000 euros, depending on their location, state, size and amenities.
German buyers go back to Spain8th May 2017
German buyers are going back to Spain’s property market at an increasing rate.
Total sales to German buyers jumped 40 per cent in 2016, compared to the previous year, according to Taylor Wimpey España. The rise in demand was primarily fuelled by the Balearic Isle of Mallorca, which accounted for 93 per cent of transactions. With Mallorca enjoying 300 days of sunshine every year, the appeal of the coastline, which is protected from overdevelopment and a marked change from Northern Europe’s climate, the Spanish housebuilder says it is no wonder that Germans are rushing to buy a holiday home.
“We definitely experienced a significant increase in enquiries and indeed sales from German buyers in 2016. Mallorca has always been a popular holiday destination with German tourists and as the island’s property market expands in order to accommodate the growing demand from prospective holiday home owners, it is German buyers who are leading the sales,” says Marc Pritchard, Sales and Marketing Director at Taylor Wimpey España.
In response to the rising demand, Taylor Wimpey España has now launched a new free helpline for those residing in Germany. Prospective buyers will be able to call 0800 511 1551 to discuss the property options available to them.
Palma Airport set for expansion as tourist traffic grows
17th March 2017
Palma Airport is set for an expansion in the coming years, as tourist traffic to the island continues to climb.
The Balearic island is one of the most popular parts of Spain for holidaymakers seeking sea, sand and sunshine – and that number is only set to increase.
AENA have estimated Son Sant Joan will receive 28.5 million passengers in 2021. While Palma’s Son Sant Joan is already the third largest airport in Spain, behind Madrid and Barcelona, though, it will need to expand to accommodate the growing number of passengers. In the next four years, therefore, Spain’s air navigation management company will invest almost €297 million in extending the airport.
Marc Pritchard, Sales and Marketing Director for Taylor Wimpey España, is excited about what opportunities the AENA investment could bring to the island and is looking forward to welcoming a growing number of visitors to Mallorca. He comments: “We have certainly experienced a growing interest in property on Mallorca as it becomes a prominent must-visit destination for travelers from across the globe. And it’s fantastic that Mallorca is enjoying such a boom in its reputation as a filming location.”
Indeed, BBC drama The Night Manager was filmed around Palma, Llucmajor, Cala Deia and Port de Sóller, attracting over 6 million UK viewers last spring and earning six Emmy nominations in 2016. This month, the BBC announced that the show will return for a second season, which means Mallorca’s beauty could once again be showcased on the small screen.
“The fantastic weather and range of stunning locations provide an ideal environment for shooting everything from adverts to films and the island is fast becoming one of the entertainment industry’s favourite locales, which in turn increases it’s attraction as a holiday home destination,” adds Pritchard.
“As popularity for the island continues to grow we are determined to provide an array of high quality properties in locations that reflect the best of Mallorca’s culture as well as its coastline.”
The homebuilder has just launched Cala Vinyes Hills, a residential complex a short 20-minute drive from the airport.
Mallorca property sales surge as Brits brush off Brexit
12th July 2016
When it comes to Spanish property, British buyers appear to be brushing off Brexit concerns, with sales of property in Mallorca surging.
Engel & Völkers Mallorca has seen sales volume rise 79 per cent in the first half of 2016, from €122,477,000 in 2015 to €218,972,000.
Engel & Völker Master Licence Managing Director, Florian Hofer says: “In the aftermath of Brexit our internet requests for property have increased, in some shops, requests have even tripled (including requests from the UK). We take this to be a clear sign that buyers are looking to invest their money in a property market that is stable and secure, offering a superb lifestyle in the sun.”
Indeed, Mallorca’s stability as a tourist destination remains clear to see, with the island’s hoteliers reporting 95 per cent occupancy and Palma International Airport expecting to process a record 4 million passenger movements this month alone.
The agency forecasts momentum to continue in the island’s property market, with a good mix of overseas buyers, including some British buyers, regardless of the current volatility of sterling.
Historically, the North of Mallorca has been popular with British buyers, notes the firm, although it is not yet clear how the market will perform post-Brexit.
In the South West, though, demand is so strong that it is outstripping supply. British buyers have always been “very active” in the area, particularly at the top end of the market, and since Brexit, the area has received more online enquiries from the UK.
In Palma, the typical buyer profile is changing to younger investors with families that commute to their country of origin. In Son Vida, meanwhile, sales have doubled over this time last year, with a higher average sales price of €1.9 million to €2.5 million. Son Vida attracts younger, family investors (aged 45 to 55) and mainly cash buyers.
The figures follow a record year for the agency in 2015.
Photo: Villa overlooking Puerto Andratx, Engel & Völkers
Mallorcan property sales surge 25pc
9th December 2015
Mallorcan property sales have risen by roughly one-quarter in the past year, according to Engel & Völkers.
The estate agency, which has 16 offices around the island, has reported a “record year”, with real estate deals totalling €300 million, up 25 per cent compared to 2014.
A further surge of sales is also expected over the festive period as potential buyers return to seal the deal on a property they saw this summer.
“Prices are starting to creep up for top locations by 10-15 per cent and foreign buyers are fuelling the market in Mallorca to the tune of 921 Million Euros,” notes the agency.
Hot spots have been either coastal locations, such as Puerto Andratx, Son Vida, the exclusive residential estate (where E&V has doubled sales this year).
A boom in the island’s capital along the Paseo Marítimo, the bohemian market area of Santa Catalina, Old Town Palma and the old fishing port of Portixol, has led to an increase in square metre values by approximately 10 per cent, especially for property with outside space and views.
Inland, in Mallorca’s rural areas, sales have increased by 50 per cent in 2015 and some of the most expensive properties sold on the island have been in this region.
“Buyers are looking for luxury estates with lots of land that offer privacy and space with views across the Sierra Tramuntana Mountains,” comments the agency.
Foreign buyers are mostly German speaking, or from the UK and Scandinavia.
Hans Lenz, spokesperson for Engel & Völkers Mallorca, comments: “As a group Engel & Völkers Mallorca envisages continued interest for property from overseas in 2016 fuelled by strong currencies outside of the Euro, the increasing appeal of the island and the desire to own a place in the sun that is safe, secure and easily accessible.”Google+