Hotspot Brochure - West

Hotspot Mallorca Balearic Islands · Spain

EDITORIAL

Dear Reader

The Island of Mallorca is the largest of the Balearic Islands in the Mediterranean Sea of the east coast of Spain, Europe. It is the top destination for second homes offering a wonderful climate, beautiful landscape, and coastline – perfect to enjoy the outdoor lifestyle. The island has a modern infrastructure with top sports facilities, hospitals, and international schools. There are direct flights to Europe’s main cities, and now to New York from Palma’s International Airport.

Mallorca has established itself as the prime location for luxury residences and investment properties in the Mediterranean. It attracts a discerning international clientele which finds in Mallorca the ideal place for a privileged lifestyle. A property in Mallorca is considered a safe investment in the future, which is why some properties are bought primarily as an investment. An increasing number of buyers plan to spend more time in Mallorca in future, work from their remote office at their dream property or even move their main residence to the island.

Engel & Völkers celebrates over 30 years in Mallorca, supported by over 170 professionals in 19 property shops with local know-how and international reach.

The Private Office department has been offering an exclusive first-class service to particularly wealthy international private clients since 2007.

Eddy Barrera Managing Director Engel & Völkers Mallorca West

Contents

Introduction 1

Mallorca as a gateway to Europe 5

Mallorca facts 6 Hollywood discovering Mallorca 7 Palma de Mallorca 11

Local produce & gastronomy 15

Sustainable Mallorca 18 Safety & schools 21 Sports paradise 22 10 reasons to invest 24

Engel & Völkers Highlights 26

Mallorca's property market 28

Contact & imprint 32

Ibiza 0:40 h Paris 2:00 h Madrid 1:30 h London 2:30 h New York 9:15 h

Chicago Paris

New York

London Madrid

Los Ange les Pal ma

Mallorca as a gateway to Europe

Mallorca’s greatest advantages include its excellent accessibility thanks to many different airlines with direct connections into Palma Airport from all of Europe's main cities that make it a destination like no other. For many US Americans, Mallorca is considered the gateway to Europe and since June 2022 there is even a direct flight connection to the island. United Airlines takes you from New York to the Balearics three times a week from spring to fall. Flights between New York and Palma have been fully booked in the first months and have been the most profitable flights of the airline. Due to the high demand, the frequency of flights will probably increase in the coming year and there is another direct flight planned, namely from Miami. Also the private jet terminal MallorcAir experiences more and more trans-atlantic flights, a considerable number of the private jets that land in Palma come from the US.

Mallorca can be reached from the US not only by air, but also by water. With "Wonder of the Seas" of the US-American shipping company Royal Caribbean International it is possible to travel comfortably from Orlando, Florida, via the Spanish mainland to Mallorca. The Wonder of the Seas was completed by the end of January 2022 in France and, with a length of 362 meters, is the largest cruise ship in the world. The "Explorer of the Seas" of the same shipping company takes you from Miami to the island. Numerous mega yachts of various US billionaires also regularly dock in the port of Palma which soon will be one of the most prestigious harbors in the Mediterranean.

Hollywood discovering Mallorca

Since the 1950’s Mallorca has been under the radar with many famous celebrities and film stars attracted to the island’s beauty, peace and security and its authentic Mediterranean atmosphere. In 1956 Hollywood superstar, Ava Gardner, sought refuge in Mallorca escaping her disastrous marriage with singer, Frank Sinatra. Many famous names have been drawn to the Formentor peninsula at the northernmost tip of Mallorca, including Grace Kelly and Prince Rainier of Monaco who spent their honeymoon on their yacht in the Bay of Formentor in 1956. Over the years, the Hotel Formentor has welcomed such esteemed guests as Sir Winston Churchill and cinema stars including Charlie Chaplain, Elizabeth Taylor and Audrey Hepburn.

The exclusive residential area of Son Vida with the iconic Castillo Son Vida Hotel is located just outside of Palma and also known as the “Beverly Hills of Mallorca”. Over the years the hotel has hosted many famous stars including Anthony Quinn, Zsa Zsa Gabor, Bridget Bardot, Julio Iglesias, Sting and Jennifer Lopez.

Mallorca remains a haven of peace and security for Hollywood stars such as Michael Douglas and Catherine Zeta Jones who have spent their summer vacation on their estate in Valldemossa on the west coast of the island where they have hosted many top billing names including Tom Cruise, Nicole Kidman, Michelle Pfeiffer and Jack Nicholson.

Because of its ideal weather and light conditions all year round, Mallorca has established as a worldwide top location for film productions such as the series "The Night Manager" and the Netflix production

“The Crown”, as well as the American films “The Hustle” with Anne Hathaway and Rebel Wilson and “Me Before You”, produced by New Line Cinema and MGM.

There is no other summer destination which can be reached from almost all cities in Europe like Palma.

Palma de Mallorca Mediterranean metropolis with history

The cosmopolitan city of Palma de Mallorca impresses both international visitors and its resi dents with a diverse range of cultural facilities and historic buildings. Palma’s lively nautical area with several marinas has a Mediterranean ambience and an array of first-class dining options the whole year through. There are numerous modern and tra ditional boutiques and shops in the winding streets of the historic center. The city’s beach, Can Pere Antoni, is located just a few meters away from the Gothic Cathedral of La Seu whose history dates back to the 13th century.

In May 2020, extensive renovation work started at Club de Mar yacht club and marina - this is the lar gest maritime project in the Balearics, and construc

tion work is progressing quickly. Palma is set to have one of the most modern and sustainable marinas in the entire Mediterranean. There are plans to build a dock for four boats of between 136 and 170 meters in length and with a beam of up to 24 meters. It will be the largest wharf in Spain. Around 60 million euros have been invested in integrating the marina into the city’s waterfront boulevard, the Paseo Marítimo.

In the capital of the Balearics, great emphasis is placed on a high quality of life and making sustainable investments in consistently improving infrastructure.

The new technology center in Palma’s Nou Levant dis trict is currently being developed with the Balearic Islands University and is part of a project to create a high-tech quarter based on the Silicon Valley model in California. In future, topics such as digitalisation and renewable energies will be researched here. In addi tion, the emerging new area of Nou Llevant will be characterized by several new development projects, which also aim to attract international workers and investors.

guests in 2021. Just outside of Palma and only 20 minutes from the airport you can find the exclusive five-star Hotel Hospes Maricel & Spa Mallorca with a Palacio inspired by architectural styles from the 16th and 17th centuries. Islandwide renowned luxury hotels are catering a discerning international clientele.

There is also continuous development in the tourism sector in Palma de Mallorca: several luxurious hotels, such as the Palma Riad, Concepció by Nobis, and Nivia Born Boutique Hotel, welcomed their first

Palma de Mallorca is coming under the radar of many foody visitors as one of the most dynamic Mediterra nean capitals for gastronomy at all levels. Restau rants, cafes, and markets all celebrate the island’s local culture while offering a great variety of cuisine featuring local fresh produce and innovative rewor king of traditional island recipes.

Michelin-starred restaurants in Mallorca

Zaranda - 1 star

High-end, multi-course meals with global inspiration served in a classy restaurant.

DINS Santi Taura - 1 star

Sophisticated, adults-only restaurant offering locally sourced, seasonal fare & a robust wine list.

Adrián Quetglas - 1 star

Sophisticated Mediterranean dining room with creative tasting menus & wine pairing.

Marc Fosh - 1 star

Tasting menus of adventurous Mediterraneaninspired cuisine, plus wine pairing, in a sleek space.

Maca de Castro - 1 star

Elegantly presented Majorcan cuisine served in a sophisticated restaurant with a garden terrace.

Béns d’Avall - 1 star

Refined Balearic dishes, including bouillabaisse, at this decades-old venue with a sea-view terrace.

Es Fum - 1 star

Fusion restaurant - diverse menu is filled with delicious specialities.

VORO - 2 stars

High-quality regional and seasonal products. Surprises with exquisite, innovative dishes.

Andreu Genestra - 1 star

Sophisticated restaurant is dedicated to traditional Mallorcan cuisine.

A feast of local produce & gastronomy in Mallorca

It is no secret that Mallorca has become one of the European hotspots for international culinary connoisseurs who visit the island to discover the unique flavors of Mediterranean cuisine. The capital city of Palma offers a wide selection for all culinary tastes, from the typically rustic menu del día to contemporary Asian fusion and ritzy fine-dining experiences with intricate tasting menus prepared by Michelin-starred chefs. Whether hidden down the atmospheric streets of the Old Town, showcased on sunny waterfront terraces, or resplendent under palm trees on grand palacio courtyards, we are spoiled for choice by the city’s extensive selection of restaurants.

When package tourism first started in Mallorca in the late 1950’s, restaurants focused on international cuisine to give visitors “home from home” food. However, over the last decade the increased popularity for the island’s rural tourism, combined with a new generation of visitors that want to experience authentic food of the

destination, has created a shift to developing more homegrown local produce. Many restaurant concepts are now celebrating the popularity of Mediterranean gastronomy and have gone back to their Mallorcan roots serving updated traditional dishes with fresh local produce wherever possible.

Mallorca now has over 90 bodegas producing award winning wine which is becoming recognized at an international level. The production of local olive oil is another success story, packaging the oil in attractive bottles and containers. This approach has extended to the island’s sea salt, honey, distinctive sobrasada (spicy pork sausage), jams and home-made ice cream, all being sold on the traditional weekly markets islandwide.

The island is increasingly becoming the No. 1 destination for a second home in Europe.

Pure nature Sustainable Mallorca

Mallorca is characterized by its untouched nature and impressive varied coastline. Kilometers of beaches, stunning bays with crystal clear waters, in combination with the impressive rural landscapes make the largest of the Balearic Islands an attractive location for nature lovers. Mallorca is a wonderland for walkers and hikers and home to the Serra de Tramuntana, one of the most spectacular mountain ranges in the whole of Spain. Stretching around 90 kilometers from Andratx in the southwest to Cap Formentor in the very northeast, the Tramuntana

mountains are a UNESCO World Heritage site, and once you’ve been there, you easily understand why. A visual feast of dramatic peaks, breathtaking geographical curves and resplendent nature, it is no surprise that the Tramuntana mountains are beloved by cyclists, hikers and outdoor enthusiasts.

To preserve this unspoilt nature sustainability is a pure necessity, especially for future tourism development since the Balearic Islands have become one of Spain’s most successful tourist regions.

The Balearics have led the way in environmental protection in the Mediterranean for over 50 years with the mission of making the tourism industry environmentally friendly and to create a sustainable and regenerative tourism model.

Step by step, the island of Mallorca is on the path to becoming a sustainable travel destination. Since March 2021, single-use plastic products have been banned and there are several community initiatives which support positive development across the island, such as filtered drinking water from public water dispensers. Measures connected to traffic calming as well as the reduction of air and noise pollution are systematically enforced by the government. In Palma’s center, there are increasing numbers of restricted traffic zones, which have either been turned into green spaces or are completely car-free zones.

In Mallorca there are an increasing number of companies and initiatives aware of the need to work to ensure a sustainable future both for the island and for tourism that remains the island's most important source of income.

The island of Mallorca is considered a pioneer for nature conservation in the Mediterranean region.

A safe haven for families Safety & Schools

One of the most important criteria for an international clientele is the region’s high level of safety. The island situation stands for itself, as it is comparatively easy to ensure the monitoring of border security. Also the Spanish royal family trusts in the safety level of Mallorca and has spent all summer in their island residence since the seventies.

It doesn’t surprise that many families select Mallorca as their primary residence. Another main factor for them is the selection of 17 renowned international schools. From preschool to primary, A Level and the International Baccalaureate for students of up to 18 years right through to university kids can enjoy excellent education in multiple languages. Growing up children in a secure international environment and under privileged circumstances is a gift many families appreciate.

The fact that the royal family has spent its summer here for decades speaks for itself.

Sports paradise Mallorca

Mallorca has established itself as a top location for both sports enthusiasts and professionals since the island offers the best conditions for sports on land as well as on water – all year round. The spectacular Tramuntana mountains, the wide landscape, the amazing coastline and the sea are ideal settings for many sports activities such as golf, hiking, cycling, tennis, sailing and many more. Due to the ideal climate, the good sports facilities and, last but not least, the easy accessibility, many international sports competitions take place in Mallorca.

The ATP Mallorca Championships put the island in the international spotlight attracting the best tennis players such as Novak Djokovic, Daniil Medvedev and Dominic Thiem among many others. This year, the tournament has once again attracted tennis players and fans from all over the world.

Young tennis stars find their place in the Rafa Nadal Academy of Spanish tennis player Rafael Nadal who finished five seasons as world number one. Since its opening in 2016, the academy has already become one of the reference sports centers in the world. It offers top facilities and infrastructure - and all this in the heart of the beautiful island of Mallorca.

With 23 varied as well as challenging golf courses all over the island, Mallorca is also an absolute place to be for passionate golf players and professionals who appreciate the excellent facilities and spectacular views of the Tramuntana mountains and the Mediterranean Sea.

Once a year Mallorca holds “The Mallorca Golf Open” which is part of the DP World Tour tournament, one of the leading professional golf tournament series in Europe. It is an incredible event in a spectacular setting which attracts many visitors and the best players in the world.

In June 2021 we celebrated the first edition of the ATP 250 Mallorca Championships in the Mallorca Country Club, the new home of lawn tennis in southern Europe which was founded in collaboration with Wimbledon and combines traditional lawn tennis with a modern lifestyle.

Last but not least, horse riding is also a part of Mallorca. With several horse breeding farms, riding stables and equestrian hotels, the island is a popular destination for horse lovers.

Why Mallorca? 10 reasons to invest

1. Good accessibility

The international airport of Palma de Mallorca is one of Europe’s leading airports, with hundreds of routes to destinations across the globe. Direct flights to all major European cities ensure that journeys are kept short, therefore, those interested in buying properties can easily commute between their home and the Mediterranean island of Mallorca.

2. Perfect climate

With an average of 300 days of sunshine a year, Mallorca has warm summers and mild winters, during which the temperatures rarely fall below 12 degrees. It is the perfect climate to enjoy outdoor activities and life outdoors the whole year through. The pandemic has resulted in many owners of holiday homes spending longer periods of time on the island.

3. Infrastructure

Mallorca has a highly developed and fast motorway network, and even the places located furthest away from the capital of Palma can be reached by car within 90 minutes. Thanks to the modern fibre optic network, almost all households can be provided with fast Internet connection, which makes the decision to work from home on the island even easier.

4. Capital of Palma

As a travel destination in its own right, Palma de Mallorca offers a combination of architecture, culture, individual boutiques and shops, as well as a year round restaurant scene. Many of the historic buildings have been renovated and the cosmopolitan city boasts numerous new openings as well as diverse social and cultural activities.

5. Healthcare

Mallorca provides professional healthcare management in all parts of the healthcare system. This encompasses multi-lingual services in first-class doctors’ surgeries and hospitals. The island is therefore able to ensure medical care for millions of visitors.

6. Sport activites

The island has strengthened its position as a leading sports destination internationally: not only for those who practise sports in their spare time, but also for professionals preparing for their athletic season with training sessions on the island. Many international sports events take place in Mallorca, such as the ATP Mallorca Tennis Championship, the Road to Mallorca, the Mallorca Challenge (Triathlon), and the UCI Track Cycling World Championships. Whether you are interested in hiking, sailing, cycling, or playing golf, the island has something to offer for everyone.

8. Diverse landscapes

Mallorca’s attractiveness is based on its diverse and varied landscapes. The Serra de Tramuntana mountain range spreads over an area of 92 kilometres, from the southwest to the northern tip of the island. The impressive interplay between mountains and sea appeals to the island’s visitors and residents alike.

9. Education

In Mallorca, there are 17 international schools which provide a good standard of education for native and foreign residents, from pre-school right through to university. Children can be taught in their native language and learn Spanish at the same time. The University of the Balearic Islands offers a diverse range of academic programmes.

10. Culture and society

7. Safety

Security organisations including the police and Guardia Civil have decades of experience in keeping the island safe for numerous visitors. Due to the few possible points of entry, it is comparably easy to monitor the island’s border security.

The island’s social and cultural agenda includes a broad spectrum of concerts, food and wine festivals, sports tournaments, and the popular traditional island fiestas the whole year through. Additionally, the exclusive marinas in Puerto Portals and Port Adriano organise popular events, such as the Classic Car Rally, the Aftersun Market, and the Christmas Market.

Balearic Islands: Engel & Völkers Highlights

Nº1

Engel & Völkers is the market leader for properties in Mallorca based on our annual turnover, market share, the number of real estate shops, employees and real estate advisors, as well as the number of properties on the market.

568

With a total of 568 real estate trans-actions in 2021, Engel & Völkers achieved a new record in the Balearics (compared to the previous year: +95%). The unprecedented demand for properties in the Balearics has led to a market in which properties are selling faster than ever before. This is clear proof that investors regard the islands Mallorca, Ibiza, and Menorca as first-class property locations.

There are 23 Engel & Völkers real estate shops in the Balearics: 19 in Mallorca, 2 in Ibiza, and 2 in Menorca. We place our confidence in the Balearic Islands’ property market. This is reflected in our latest investments, such as the opening of a real estate shop in Alaró, and the first Engel & Völkers business office in Mallorca, which is located in the innovative office and service centre “The Circle” in the Mallorca Design District in Santa Ponsa.

A property in the Balearics is a crisis-proof and a profitable investment. This is demonstrated by the fact that the properties sold by Engel & Völkers in the Balearics since 2012 have increased in value by approximately 9% annually. The islands have proven their status as a safe haven for investors.

€ 1 B

In 2021, Engel & Völkers’ transaction volume reached almost a billion euros in the Balearics, achieving figures higher than ever before (compared to the prior year: +113%). The Balearic Islands’ entire market was able to significantly exceed the figures of the previous years to achieve new records of around 6.6 billion euros (compared to the prior year: +81%).

Engel & Völkers surpassed the performance of the entire market.

2,500

Engel & Völkers markets properties in Mallorca, Ibiza, and Menorca, and more than 2,500 properties in various price categories are currently on the market. These include villas, fincas, town houses, and apartments. Properties with views of the sea or those located in the first sea line are particularly sought-after. There are also attractive options in the countryside and in the mountains.

64 %

The strong demand for high-quality properties is reflected in the total number of Internet enquiries

Engel & Völkers received in 2021. Compared to the previous year, 64% more property enquiries were registered on Engel & Völkers Mallorca’s website (in comparison to the pre-pandemic year of 2019, there were 123% more enquiries).

30 Years

Engel & Völkers opened its first overseas office in Palma de Mallorca in 1990. Today, with more than 30 years of market knowledge we are the leading contact partner for premium properties. Engel & Völkers is currently present in more than 30 countries across 5 continents. More than 15,000 people work under the brand name Engel & Völkers.

The Engel & Völkers team on the Balearics has grown significantly over the past few years as a result of its successful turnover. After starting with a small team in Palma de Mallorca, more than 200 employees and real estate advisors now work at the various locations around the islands. The experienced teams work in numerous languages in order to communicate effectively with their international clients.

Mallorca’s property market in overview

Mallorca is not only characterised by its stunning landscapes. It is also attributed with a highly attractive real estate market underpinned by its outstanding infrastructure. Starting with accessibility: there is no other summer destination which can be reached from almost all cities in Europe like Palma Airport. Engel & Völkers has been active in Mallorca’s capital for more than 30 years and has therefore witnessed Palma’s transformation into a thriving capital thanks to the many international influences.

Engel & Völkers looks back on its most successful financial year ever in the Balearics. In 2021 a total value of 1 billion euros of properties were sold by us to new owners. This represented more than 500 property transactions that fulfilled the wishes of our buyers and vendors and for our team, it meant an average of two notary appointments per day. We have observed growing numbers of families making Mallorca their main place of residence. Besides the climate, recreational value, and diverse cultural opportunities, they have access to 17 international schools, and enjoy a high level of safety.

E&V ID: W-02A97J

All of these factors mean that the attention of international buyers has been increasingly drawn to Mallorca since the beginning of the pandemic: the island is increasingly becoming the No. 1 destination for a second home in Europe.

For many years, we have been producing Engel & Völkers’ market report in Mallorca, focusing on the current developments surrounding the real estate market in the Balearics and Mallorca. In this report, you can read about the market trends on the island based on an array of well-researched facts, analyses, and assessments carried out by Engel & Völkers’ real estate agents. The real estate sector makes a huge contribution to the development of the Balearics, especially during times of uncertainty. For example, the sector accounted for around 25% of the Balearic Islands’ gross domestic product in 2020 (2019: 20%).

Due to low interest rates and, at the same time, rising inflation, it has become important for many people to invest their money securely on a long-term basis. Real estate investments are therefore currently seen as stable investments across the globe. Properties in the Balearics have proven to be extremely stable investments, having experienced significant appreciation over the past decade: since 2012, the team at Engel & Völkers has

processed around 3,400 transactions, with an average annual increase in value of around 9%. As a result of the short supply of properties on the market and the consistently high level of demand for high-quality real estate, we predict that prices will continue to rise in Mallorca. The island therefore remains a safe haven for property investors. Whether you are searching for a traditional finca in the tranquil centre of the island, an apartment in Palma, or a luxury villa with a sea view in Son Vida, your satisfaction is our priority. Our portfolio is spread across all types of properties. We are grateful for the trust our clients place in us and are ready to offer you our services as a reliable partner whenever you need us.

The current exchange rate is extremely favorable for US buyers and represents a unique window of opportunity for those looking to purchase a holiday home in the Mediterranean.

Casa Kalos · Mediterranean Modernism

Contact

Eddy Barrera Mobile: +34 607597011 Mail: eddy.barrera@engelvoelkers.com

Publisher

Balearics Property Partners S.L. Licensed Partner of Balearev GmbH Archiduque Luis Salvador, 1 07179 Deià, Spain Phone: + 34 971 63 63 63 www.engelvoelkers.com/mallorca-westcoast

Coordination

Madita Wirth

Layout Karina Ivanova

Photographers: Eduardo Márquez, Karina Ivanova, gettyimages.com, unsplash.com, shutterstock.com

Follow us: @engelvoelkersmallorca

Disclaimer

All information has been compiled with the greatest possible care. We cannot accept any liability for the accuracy and completeness of this information. We shall not be held responsible for damage of any kind whatsoever incurred either directly or indirectly through the use of this information, with the exception of liability for intent or gross negligence. Last update of information and data published: October 2022. Duplication only with written permission and reference to source.

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