Mallorca is increasingly closer to becoming the top European destination for second home buyers, with the numbers remaining very high.
This is confirmed by the latest market report published by real estate agency Engel & Völkers Mallorca, which provides a detailed overview of the sector's evolution on the island and highlights recent trends. The analysis of the real estate supply in different regions and sector dynamics is based on data obtained between January 1st and December 31st, 2022, from 591 real estate agents by Casafari LLC, an independent market research firm.
Engel & Völkers studied the total market supply of the island's premium segment, with reference to 34,120 properties (starting from €300,000 for apartments and €700,000 for houses), the majority of which are located in Palma (28%), southwest Mallorca (19%), and central Mallorca (15%). This trend will be confirmed in almost all areas of the island: real estate demand is increasing, while real estate supply is decreasing.
At Engel & Völkers Mallorca, for example, more properties (56%) have been sold or withdrawn from the market than combined (44%).
The same report points out that "while the high demand for properties is one of the causes of price increases in the Balearic Islands, it is also affected by a scarcity of supply resulting from complex circumstances, including a clear shortage of developable land."
In Mallorca, "the limited number of homes and the interest of foreign buyers have caused prices to rise more than in other parts of Spain." However, this problem is not exclusive to Mallorca, as it is worth comparing the price trends on the island since 2015 with Madrid (+58%) and Catalonia (+53%).
Comments