Mallorca Property Market Update 2008

Demand for property from throughout Europewithout the tourism that coastal locations tend to
continued throughout 2007, and most propertyattract. Fincas and village houses in these areas carry
professionals on the island reported steady interesta certain premium as the locations are in high demand
and sales, with increased activity at the upper end offrom both the foreign and domestic markets.
the market especially. Prices continue to rise, althoughNORTH WEST COAST AND THE NORTH
at a reduced pace, as sellers are being more realisticBuyers in search of a more rural and traditional side
in their asking prices.of Mallorca with the most dramatic landscape often
Improving marina facilities throughout the island,gravitate to the North West and north of the island.
continual restoration projects in the countryside toDominated by the Tramuntana mountain range
maintain historic buildings and walls make Mallorca onestretching from Andratx in the south to Pollensa in
of the Mediterranean's most sought after places tothe north, the villages of Deia, Valldemossa, Soller,
own property. Mallorca's foreign community - one ofPuerto Soller and Fornalutx will come high on the list
the largest in Spain - continues to thrive. Tourism isof interesting locations to consider.
the mainstay of the island along with property and isThe protected area of the Tramuntana Mountains
continuing to become more diverse and upmarket,ensures that new properties are rare and demand
attracting visitors from all over the world. There arefor existing fincas and village houses are constantly
now many more five star hotels and with 24 UK andhigh at Shortcuts Property Search. The most notable
21 German airports providing flights to Palma, thechange in the North West is evident in Puerto Soller,
island's convenient location and popularity lookswhich has undergone a face lift as a new tunnel has
unlikely to diminish in the foreseeable future.re-routed traffic away from the harbour, so now the
PALMApromenade is open only to pedestrians and a few
The island's political and cultural capital is where 40%local cars. New hotels and restaurants have begun to
of Mallorca's population lives and enjoys an averagespearhead the port's renaissance and two and three
daily temperature of 21.4 degrees and 7 hours ofbedroomed village and edge of village properties are
sunshine per day throughout the year. It is thecommanding prices of EUR550,000 plus. Traditional
largest medieval old town in Europe with numerousstone faced fincas can be found for EUR700,000
famous buildings, fashionable shops, narrow streets,whilst renovated fincas with sea views are on the
tapas bars and enough restaurants to satisfymarket for anything upwards of EUR1.4m.
everyone's palate. It is dominated by the GaudiContinuing up along the west coast are
influenced Cathedral and an eclectic mix of artPollença, Puerto PollenÂa, Formentor and
galleries from the contemporary Es Baluard to theAlcudia. The property market in this area is dynamic
historic Palau March.and has long been popular with the British market.
Open plazas and avenidas give way to waterfrontVillage houses, modern apartments and fincas are all
marinas lined with super yachts. There are two yachtin high demand and the extension of the motorway
clubs, including the largest and most prestigious onfrom Palma, which now by-passes Inca, has
the island, which hosts the Copa d'el Rei each year.significantly shortened drive times from the airport
The Spanish Royal family holiday each August on theand Palma.
island at their summer palace on the outskirts of theThe town of PollenÂa with its famous Monte
city and regularly compete in several regattas.Calvario steps is a much-desired location now the
A new look to Palma's sea front has begun, with arefurbished village square is cut off from traffic. The
new convention centre taking centre stage of atown boasts a number of musical and art festivals
EUR40+ million regeneration project at the easternduring the year and its growing number of
end of the Paseo Maritimo, close to the fashionablerestaurants and galleries give it an artistic
marina of Portixol and opposite Palma's main beach. Itatmosphere. It is a lovely place to relax and watch
will become a major business destination, offering anlife pass by.
auditorium, conference halls as well as a new fiveIn the Pollensa area there are a number of fincas
star hotel, cafes, gym, restaurants and bars.with land of twenty hectares or more. The valleys of
Shortcuts Property Search report property demandVall d'en March, Vall de Colonia and Vall de Can
in Palma is primarily for older refurbished buildings,Aixartell are sought after for their idyllic locations and
particularly around the Cathedral area of Calatravamountain views - yet within a few minutes of
and the areas of La Llonja and Santa Catalina. Manybeaches and the town. A new luxury villa
of the city's old palaces and villas are currently beingdevelopment overlooks the Pollensa golf course.
totally renovated with the addition of lifts andAnother area of interest is the villa urbanisation of La
modern facilities. The faded areas of Portixol andFont, close to PollenÂa. It sits on a hill and the
Terreno are also being rediscovered and gentrified -beaches of Cala San Vicente and Puerto Pollensa are
Portixiol is now a very fashionable and chic area.just minutes away. Apartments tend to be
Foreign buyers in particular are looking for propertyconcentrated on Puerto Pollensa and vary
which offers good outside living in the form of lofts,considerably. New apartments are from around
penthouses and courtyards and these inevitablyEUR450,000 with communal gardens and pool.
command premium prices.The second phase of the Puerto Pollensa ring road is
Santa Catalinascheduled to open in the summer of 2008. This new
This old fisherman's neighbourhood has become aroad will divert traffic heading for Alcudia away from
lively restaurant area with its popular market at itsthe sea front to the east of the marina. This will
centre. It is a district that borders the contemporaryreduce the congestion in the main town centre and
art museum of Es Baluard and the waterfront of thealong the promenade.
Paseo Maritimo. Prices range from EUR2,000 toAlcudia has a number of popular urbanisations,
EUR3,500 per m2.including the recently modernised Bon Aire, Mal Pas
Calatravaand Baccares overlooking Pollensa Bay. The small
The historical heart of Palma surrounds the Cathedralyacht haven of Puerto Cocodrillo is interesting near
and includes the notable churches of Santa Eulalia andthe golf course with views over the sea in Aucanada.
San Francisco. Calatrava consists of quiet narrowFinally, the exclusive Formentor area retains its
streets of historical buildings with restricted accessexclusivity with very few properties ever on the
and parking. Prices range from EUR4,000 toopen market. The natural landscape with white sandy
EUR9,000 per m2.beaches gives this spectacular peninsular a great deal
La Llonjaof charm.
This quarter borders the Born on its eastern side andOTHER COASTAL AREAS
the Paseo Maritimo and up to Es Baluard, theShortcuts Property Search predicts the North East
contemporary art museum. It is also a lively area withand eastern coastline will see the most change in the
restaurants and bars particularly around Plaçaforeseeable future as improved infrastructure has
La Llonja itself. A number of small and exclusivemeant they are more accessible and new
boutique hotels have opened in this area attracting adevelopment in the South West slows. There are
fashionable following. Prices range from EUR3,500m2.several good new developments offering quality
Portixol/ Es Molinaraffordable homes close to the sea and within easy
Portixol has a small marina, beach and a wide seawalking distance to restaurants and shops.
front promenade and has become an expensive andThe improved Palma to Manacor road will make the
chic area. Slightly further along the coast Es Molinarvillages of Arta and Capdepera and the residential
and Cuidad Jardin offer a less expensive alternative.areas of Costa de Canyamel and Costa de los Pinos,
The planned redevelopment of the sea front at thelocated between beautiful mountains and beaches in
eastern end of the Paseo Maritimo where the accessthe north east, easier to get to and therefore more
road to Portixol and Es Molinar is located will ensurepopular.
the area will maintain prices of EUR3,000 m2 andPrices are more reasonable and if you appreciate
upwards.open spaces, stunning scenery and sandy beaches
Son Vidaand are happy to be an hour from the airport, then
Palma's most exclusive residential area has twothis area is a good place to explore.
superb golf courses and two five star hotels. It hasThose wishing to experience Mallorca away from
spectacular views of Palma and the bay and offersmass tourism will quickly feel at home in this part of
its residents privacy and security, which gives Sonthe island. The main towns of Manacor, Felanitx,
Vida an imposing air. Easy access to Palma and theSantanyi and Campos all offer shopping, culture and
airport make it a perfect location for many buyers.many good restaurants. The Vall D'or golf course and
There is strong demand for both existing and newmarinas of Cala D'or, Porto Petro, Porto Colom and
build property here with property starting atPorto Cristo also have a variety of leisure activities.
EUR1.5million.The surrounding areas of Vall D'or, Cas Concos,
SOUTH WEST MALLORCACalonge, S'Horta, Es Caritxo and S'Alqueria Blanca
As you leave Palma heading west towards Andratx,offer many quality-reformed fincas. The best
you pass the village of Genova with its numerouslocations offer proximity to golf, sea views and
restaurants and approach the areas of Bendinat,natural peace and quiet and attract high spending
Costa D'en Blanes and Portals Nous with its livelyclients seeking privacy and seclusion. Property prices
marina of Puerto Portals and some of Mallorca's mostrange from EUR250,000 to over EUR4 million. Land is
exclusive eating and shopping.increasingly difficult to find and areas north east of
Real estate here is of a high standard with severalthese villages are taking over.
urbanisations developed around the Bendinat golfINLAND AREAS
course and Shortcuts Property Search reportVillages within a twenty minute drive of Palma form a
constant interest in this area. The tunnel link ofsort of rustic belt that surrounds the cities outskirts.
Bendinat to the main Palma/Andratx motorway hasBuyers here want a more rural country feel but easy
made Palma only 10 minutes away and furtheraccess to Palma, golf and of course the sea.
served to emphasise this area as a prime location forEstablishments, Puigpunyent, Santa Maria, Alaro,
both permanent and holiday residence.Bunyola and Binissalem are poular village locations, as
Apartment prices can go beyond EUR4,500 per m2,are Sencelles and Santa Eugenia. Llucmajor to the
but these are well constructed and managed, andeast of Palma is now by-passed by the improved
have top quality finishes. Old Bendinat has a numberPM602 and is beginning to see property prices rise.
of exclusive frontline residences with direct seaHeading north, the extended Inca motorway is
access which change hands for well overputting the villages of Campanet, Buger, Sa Pobla and
EUR6,000,000.Muro more firmly on the property buyers' map as
The marina of Puerto Portals with its renownedjourney times are reduced.
restaurants, bars and exclusive shops attracts anShortcuts Property Search notes that prices for older
international group of people all year round. Theproperties in need of renovation in these areas -
proximity of several golf courses, excellent sailing andwhich had been neglected for years - are being
a wealth of sports activities make this a very soughtdriven up as availability reduces.
after location. There are many apartments thatLOOKING FORWARD INTO 2008
overlook the marina that vary considerably in price,Mallorca is one of the most popular hubs for super
and can represent good investment withyachts in the Mediterranean. The island is planning to
refurbishment potential. Overlooking Portals Nous andexpand eight of its thirty two harbours and marinas
Puerto Portals is the urbanisation of Costa d'en Blanesand this is spearheaded by the EUR40million++
where sea view villas command upwards of EUR1.3mexpansion of Port Adriano near Santa Ponsa and Sol
million.de Mallorca and the planned redevelopment of
Moving further west along the coast, Santa Ponsa isPalma's seafront at its eastern end. Moorings around
set in beautiful coastal countryside and surrounded bythe island will increase by 25% and in 2009 Palma will
three golf courses. The large urbanisation of Novabegin work to equip the port to accept 'mega' cruise
Santa Ponsa has been carefully planned to avoid highships, further increasing its popularity as an important
density building with surrounding green areas andcruise ship destination point.
protected green zones. Port Adriano just along theThe old and ugly power station in Alcudia is to be
coast is an interesting area to watch - work hasconverted into an arts and science museum - a
started on the improvement of the marina to createmajor boost for the area. Also the bay of Can Pastilla
berths for super yachts. The expansion design iswill be undergoing a massive regeneration and
being led by Phillipe Starck. This will undoubtedly meanupgrading, property here will definitely benefit as a
more restaurants, facilities and of course, higherresult.
property prices.A new five star hotel is being developed near
Beyond Santa Ponsa is Camp de Mar, with a golfLlucmajor by the Hilton group, another boost to an
course and five star hotel, along with a number ofarea growing in popularity with the British.
quality developments. This is an area whichSea view and frontline properties will remain excellent
complements Andratx and Puerto Andratx, justinvestments in Shortcuts Property Search opinion as
around the bay. In fact, Puerto Andratx must rank asthe authorities tighten up already stringent building
one of the most popular locations in the South Westregulations. Plots for construction particularly in the
and consequently is one of the highest priced regions.South West are in even shorter supply and there are
The slopes of the hills surrounding Puerto Andratxfewer developments in construction than in previous
are home to many exclusive villas, mansions andyears - reducing the choice of off-plan purchase.
apartments, many with spectacular views to the sea,Unlike other parts of Spain, where speculative building
marina and mountains.has led to over supply, the market here is more
A popular yachting port, Puerto Andratx is a workingrobust and in certain sectors there continues to be a
harbour with a flourishing fishing fleet, which addsshortage of good quality property available.
great charm and character. There are a number ofWhilst the market will perhaps not enjoy the high
locations around Andratx, including La Mola, Montport,level growth and demand of the last few years, it is
Cala Marmacen and Cala Llamp. There are alsoexpected that it will remain steady with prices
exclusive apartment developments with cliff top seapredicted to increase 7-10% in quality locations. As
views where prices currently range from EUR4,500the slow down in construction deepens on the
to EUR6,000 m2 depending on location and outlook.mainland, the building moratorium on the island is also
Sea view villas start at around the EUR1.8m mark.predicted to slow construction down here over the
Building land is rapidly becoming hard to find and asnext 12 months.
building slows down in the future, supply will beFinally, this year the areas Shortcuts Property Search
further reduced.recommend to watch and invest in are Palma old
Moving inland the villages of Es Capdella and Calviatown, the east around Porto Colom and the north
enjoy the proximity of the coast and Palma, buteast in general.