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By Johanna Gardener •
Published: 05 Nov 2024 • 14:41
• 3 minutes read
Mallorca, a jewel in the Mediterranean, has become a prime destination for luxury real estate investment with its stunning landscapes and vibrant culture and continues to attract discerning buyers seeking exclusive properties in a competitive market.
The development of luxury housing properties has taken Spain by storm in recent years, as the growing demand for exclusive properties continues to follow an exponential trend. In some of the most coveted areas of the country, investment in high-end property means that since 2019, Spain boasts a healthy range of homes worth more than €3 million. In fact, real estate cushioned within this price bracket now constitutes 37% more of overall property in Spain than five years ago. This data, taken from Grupo Tecnitasa reflects the promising dynamic of property investment in 2024, with the average value of luxury properties rising by 4.5% from 3.8 million in 2019 to almost €5.4 million in 2024.
Mallorca has a competitive market when it comes to luxury property
Mallorca is no different. A competitive hub for real estate investment, it offers everything that one could possibly look for when buying property.
Except if you’re looking for a luxury pad at a steal!
The Balearics maintain their prime position as the region with the highest prices in the luxury property market. Tecnitasa reported that last year, Mallorca flaunted one of the top-valued properties: a spectacular €39 million villa in Pollensa. It comes as no surprise that the price tag is jaw-dropping. Yet, not so much when you consider that the region continues to be a glowing hotspot with enviable purchasing power, especially from foreign investors. In the region, more than 15% of luxury homes carry a hefty price tag of over €10 million.
Mallorca s luxury property investors source energy efficiency and sustainability
Of course, in today’s evolving world of hybrid cars and sustainable energy, property is no slower in catching on to the latest trends. New factors are determining what makes the prices of luxury homes so exorbitant. And its not just location. The savviest property investors of today are rifling through a brand new set of criteria: personalisation, sustainability and energy efficiency. Instead of pomp and grandeur, a proportion of the latest generation of investors are looking for quiet luxury, where the environment, calm and sustainable quality are at the forefront of buying priorities.
Same-sector enclaves are a budding trend in Mallorca s real estate
Investors are increasingly exploring a new phenomena: sourcing properties in enclaves where individuals within the same industry collaborate and operate.. These mini resorts are quickly becoming the hottest trend as they offer shared goals, business opportunities and a niche form of community living.
Real estate experts: Mallorca s property boom will not last forever
But when should I invest? Currently, investment in Mallorca is at an all-time peak, although estate agencies specialising in the luxury market predict that across the Balearics, this boom period will need to plateau or decline at some point. Just like everything in life, the good times don’t last forever! This is down to several factors including an unprecedented investment boom during the post-covid pandemic years and the customary normalising and stabilising of a market which has undergone an acute incline for the last few years. Real estate experts are also noting a striking preference for the serene charm of rural regions. This shift highlights a newfound inclination towards wide-open spaces and picturesque landscapes.
Does Mallorca have what it takes to invest?
What remains clear is that as the luxury housing market continues to grow and expand, properties will continue to evolve with factors including sustainability, personalisation and exclusive sector-based communities driving real estate towards a new paradigm. Luxury and what “luxury” actually represents, is continually being redefined as society and priorities evolve. Price will begin to reflect, not only material value but the lifestyle package that comes with real estate investment. For now, Mallorca has it all: climate, outstanding education, exceptional healthcare, transport and technology.
And the good news? It has the perfect property to complete the outfit. Who knows whether you might just find yourself mingling with some famous faces who have taken the same path!
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Written by
Johanna Gardener
Originally from Manchester, UK and with a degree in English with Modern Foreign Languages, she has been a permanent resident in Spain for the past 12 years. Many of these years, she has spent working as a secondary school teacher, as well as in journalism, editing and marketing. She currently lives in the historic centre of Malaga, where she enjoys writing, walking and animals.
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