K ENS I N G TO N M A R K ET R EP ORT B A L E A R IC IS L A N DS 2 0 1 9 /2 0 2 0
2
KENSINGTON | Market Report Balearic Islands 2019/2020
I N T RODU CT I ON The KENSINGTON research team provides you here with the report on the development of the Balearic Islands’ property market in 2019/2020. This report is intended to help you better assess the current and future market situation in this Mediterranean destination, which is particularly popular for first and second homes. Our analyses are based on two pillars: firstly, empirical data collected by Spanish authorities, statistical offices, valuation companies and real estate portals have been taken into account. Secondly, we have drawn on the expertise of the KENSINGTON franchisees in the archipelago, in particular to provide a qualified and up-to-date assessment of developments in the Balearic Islands‘ micro and sub-markets. As a first step, we place the situation of the Balearic holiday property market in the context of current economic, political and tourism developments. We then examine a total of ten sub-markets - in addition to Ibiza/Formentera and Menorca, there are eight areas on Mallorca, the largest Balearic island.
KENSINGTON | Market Report Balearic Islands 2019/2020
3
4
KENSINGTON | Market Report Balearic Islands 2019/2020
CON T E N T In tro d u ctio n 03
KENSINGTON | Market Report Balearic Islands 2019/2020
B a lea ric Isla n d s
06
Resid en tia l rea l esta te m a rk et Ma llo rca Th e so u th w est o f Ma llo rca Pa lm a & su rro u n d in g s Th e w est co a st o f Ma llo rca Th e n o r th o f Ma llo rca Th e cen tre o f Ma llo rca Th e n o r th ea st o f Ma llo rca Th e so u th ea st o f Ma llo rca Th e so u th o f Ma llo rca
14 16 18 20 22 24 26 28
Resid en tia l rea l esta te m a rk et Ib iz a
32
Resid en tia l rea l esta te m a rk et Men o rca
34 5
BA LEA R I C ISL AN D S 6
KENSINGTON | Market Report Balearic Islands 2019/2020
In 2019, the Balearic Islands will continue to be one of the leading economic regions in Spain. In this popular holiday destination, there is not only a high standard of living, but also a high price level for holiday homes. Since 2014, the prices for land, houses, fincas and apartments have risen every year. However, the Balearic real estate sector had to assert itself in 2019 within a more difficult overall situation. The cooling of the economy in Europe plays a particularly important role here - growth forecasts for gross domestic product have been revised downwards in many countries. Spain itself still achieved a 2 % increase in GDP at the end of 2019 - and was thus above the EU average. The euro zone grew by 1.2 %. The EU Commission is forecasting growth of 1.5 % for Spain in 2020 and 1.4 % in 2021. There is still particular uncertainty about Brexit. Among foreign buyers on the Balearic Islands, the British have so far been the second largest group with a share of around 15 % (2018 figure). The Germans have been in the lead for years, accounting for just under 38 % of purchases by foreigners. Overall, 28.17 % of buyers currently come from abroad. This makes the Balearic Islands the Spanish region with the highest share of foreigners purchasing property. Another unknown factor for the real estate market are future policies concerning property sales and leases by the government of Prime Minister Pedro Sรกnchez, elected in January 2020. After all, he leads the first left-wing coalition since the Spanish Civil War. KENSINGTON | Market Report Balearic Islands 2019/2020
7
KE Y DATA ON T HE BA L EA RIC IS L ANDS’ PROPERT Y M ARK E T 2019 Property prices (Annual comparison 2018/2019)
+5,5 %
Property transactions (Annual comparison 2018/2019)
– 9,1 %
Average plot prices (Annual comparison 2018/2019)
+15,6 %
Average plot price 2019 Average Rental prices 2019 Rentals (Annual comparison) Proportion of foreign buyers
298,9 €/m
The bankruptcy of the Thomas Cook travel company in September 2019 appears to be less dramatic for the Balearic economy than initially feared. With 13.68 million tourists in 2019, the Balearic Islands remain Spain‘s second most important holiday destination after Catalonia. However, the archipelago recorded a 1.23% decline in visitor numbers compared to 2018. Future effects due to the Corona virus cannot yet be predicted. Temporarily, the 2019 property market has been affected by the entry into force of a new mortgage law in June. Last summer, hardly any real estate loans were taken out, with corresponding consequences for transactions. As far as „mortgage lending“ is concerned, things have been back to normal since September. Germans also generally buy their property on the Balearic Islands with their own money.
2
12,6 €/m2 +2 %
28,17 %
TH E TO P T E N LO CATI O N S OF T HE B A L EA R I C I S L A N D S (January 2020, average offer prices per m2)
MENORCA
❷❺ ❸ ❼
(Source for prices: www. idealista.com, own research)
MALLORCA
8
IBIZA
❽ ❿ ❾ ❶❹ ❻
❶ Es Cubells/Sant Josep ❸ ❹ ❺ ❻
FORMENTERA
Ibiza Mallorca Costa d’en Blanes/Calvià Mallorca Marina Botafoc –Talamanca/Eivissa Ibiza Son Vida/Palma Mallorca Dalt Vila – La Marina/Eivissa Ibiza Portals – Bendinat/Calvià Mallorca San Joan de Labritija Ibiza Jesús/Santa Eulària Ibiza Calas Vedella, Tarida, Conta/Sant Josep Ibiza
❷ Port d’Andratx/Andratx
❼ ❽ ❾ ❿
9.712 6.346 6.153 6.010 6.000 5.823 5.751 5.644 5.527 5.272
€ € € € € € € € € €
KENSINGTON | Market Report Balearic Islands 2019/2020
Against this backdrop, it must be noted that the number of real estate transactions declined on all the islands in 2019 (–9,1 % as an annual comparison for freely financed properties). In the first three quarters, the transaction volume totalled EUR 2.72 billion. In comparison, in the period mentioned above, the figure was around EUR 2.97 billion in 2018 and around EUR 3.08 billion in 2017. This has also had an impact on turnover in the property sector in 2019. KENSINGTON recorded declines of 7.9% in Mallorca and 6.82% in Ibiza compared to 2018. The high level of property prices plays a certain role in the slight decline in the willingness to buy. And currently, prices are still rising slightly: as an annual comparison (3rd quarter 2019) they rose by 5.5 to 6% (depending on the source). Rents have tended to stabilize. In 2019, they rose by only about two percent on the Balearic Islands.
AVE R A G E P R I CES PE R S Q UAR E M E T R E
❻ ❽
in places with more than 25,000 inhabitants
MENORCA
❿ ❸ ❺❹
❾
❼
MALLORCA
IBIZA
❶
❶ Santa Eulària del Rio ❷ Eivissa ❸ Calvià
❷ (Source: Ministry of Transport)
❹ Marratxi ❺ Palma ❻ Ciutadella ❼ Llucmayor
FORMENTERA
KENSINGTON | Market Report Balearic Islands 2019/2020
❽ Mahón ❾ Manacor ❿ Inca
2018
2019
3.188 3.318 2.869 2.024 1.924 1.804 1.852 1.362 1.352 1.321
3.603 3.505 3.052 2.303 2.104 2.011 1.988 1.506 1.450 1.372
€ € € € € € € € € €
€ € € € € € € € € €
+ 13 +5,6 + 6,4 + 13,8 + 9,4 + 11,5 +7,3 + 10, 6 +7,2 +3,9
% % % % % % % % % % 9
MA L LO RC A
10
KENSINGTON | Market Report Balearic Islands 2019/2020
KENSINGTON | Market Report Balearic Islands 2019/2020
11
S OUTH W EST
T
he south west is Mallorca‘s most popular region for holiday homes. It has the largest offer outside Palma and the most exclusive properties. The zone of Port d‘ Andratx has the highest prices in Mallorca. The south west is attractive because of its breathtaking landscape with beautiful bays and the proximity to the capital. Not only are many holiday resorts located here, but also the most renowned marinas like Port d‘ Andratx, Port Adriano and Puerto Portals. The latter is currently being further developed. Among the current new construction projects, Mourelle in Cala Vinyes (20 units from €865,000) and the Green
Currently, offer prices are often negotiable by up to about 10 percent.
2250
2139 1922 1724
1641
1500 1250 1000 2016 2017 2018 2019
12
Source: Ministerio de Transportes 11.03.2020
2500
1750
In the south west, prices stabilised at a high level in 2019. In the top locations of Port d‘ Andratx, villas cost EUR 6 to 12 million. In Santa Ponça, around 4 to 6 million euros will be needed for the most expensive properties. In the Portals area, apartments in good locations cost around EUR 1 million, while top-location apartments in Port d‘ Andratx can cost up to EUR 3 million. Transactions and demand have fallen compared to 2017 and 2018 respectively. German buyers continue to dominate the entire south west, while among the sellers there are now many British.
NUMBER OF REAL ESTATE TRANSACTIONS 2016-2019
2000
Elements apartment project (26 units using sustainable construction) in Nova Santa Ponça above Port Adriano deserve special mention.
KENSINGTON | Market Report Balearic Islands 2019/2020
Andratx Calvià Puerto de Andratx Portals Santa Ponsa
K E N S I N G TON
AVE R AG E P R IC E S F OR V I LL A S
2018
2019
Top location/trophy properties 6.000.000
6.000.000
➠
Very good location
3.500.000
3.500.000
➠
Good location
2.200.000
2.200.000
➠
SOUTH WEST
AVE R AG E P R IC E S F OR A PA RTMENTS
2018 2019
Top location/trophy properties 1.500.000
1.500.000
➠
Very good location
900.000
900.000
➠
Good location
500.000
500.000
➠
all prices in Euro
Raimond Osojnik Franchisee Puerto de Andratx, Santa Ponsa, Portals Nous
SHOWROOMS Puerto de Andratx Calle Antoni Calafat Nº 7 07157 Puerto de Andratx Tel. +34 971 698 924 | Fax. +34 971 698 945 andratx@kensington-international.com Santa Ponsa Avda. Rey Jaume I Nº 109, Local 2 07180 Santa Ponsa Tel. +34 971 690 421 | Fax. +34 971 571 079 santaponsa@kensington-international.com Portals Carretera Palma-Andratx 32 Local 2 07181 Portals Nous Tel. +34 971 680 476 | Fax. +34 971 677 513 portals@kensington-international.com
KENSINGTON | Market Report Balearic Islands 2019/2020
13
PALMA & SURR0 U N DI N G S
T
he metropolis of the Balearic Islands is not only one of the most liveable cities in the world, but also a magnet for property buyers. Palma presents itself most exclusively in the western Son Vida: stately villas, luxury hotels and golf courses attract a well-todo clientèle. There are also villas here that cost well over 20 million euros. Due to the strong demand in recent years, many districts of Palma have been greatly upgraded, and some are now even among Mallorca‘s prime locations such as Portixol/Molinar, the old town and Santa Catalina.
NUMBER OF REAL ESTATE TRANSACTIONS 2016-2019
6072
6250 6000
5628
5750 5500 5250
5101
5000 4750 4500 2016 2017 2018 2019
14
Source: Ministerio de Transportes 11.03.2020
6256
6500
However, in 2019 there was a trend for buyers in Palma to invest in the „good location“ category or move to areas that had previously attracted little interest from buyers. The gentrification of new districts is in the offing. This could include the mule culture district of Pere Garau, known throughout the island for its market halls. Work is also underway to improve the image of Playa de Palma. In January 2020, further measures against the excesses of booze tourism were decided upon to improve the quality of tourism. At Playa de Palma, it is still possible to enter the market at comparatively low prices, with an average offer price of € 2,727/m2. In 2019 the prices for villas in Palma and the surrounding area will rise. For apartments, they are stagnating in the upper price segments, while cheaper locations continue to become more expensive. Overall, prices have risen by around 5.5 % in 2019. Top penthouses in Palma are between 2 and 4 million euros. A real city palace in the old town even reaches around 13 million euros. Sea view villas in the Génova/Cala Mayor area are sold at between 1 and 3 million euros. However, the number of transactions in 2019 has fallen by around 16%. Nevertheless, Palma remains the Balearic Islands location where by far the most properties are brokered. All nationalities and age groups are interested in buying.
KENSINGTON | Market Report Balearic Islands 2019/2020
Son Vida Palma
K E N S I N G TON
AVE R AG E P R IC E S F OR V I LL A S
2018
2019
Top location/trophy properties 4.100.000
4.400.000
➠
Very good location
1.900.000
2.050.000
➠
Good location
1.200.000
1.300.000
➠
PALMA & SURROUNDINGS
AVE R AG E P R IC E S F OR A PA RTMENTS
2018 2019
Top location/trophy properties 1.250.000
1.250.000
➠
Very good location
880.000
880.000
➠
Good location
550.000
580.000
➠
all prices in Euro
Sven Binnewies Franchisee Palma & surroundings
SHOWROOM PALMA & SON VIDA Calle Conquistador N° 8 bajo 07001 Palma de Mallorca Tel. +34 971 674 306 palma@kensington-international.com
KENSINGTON | Market Report Balearic Islands 2019/2020
15
WEST COAST
T
he central area of the Tramuntana mountains on the west coast is dominated by authentic island properties and picturesque towns. There are estates of the Mallorcan nobility, ancient stone houses, terraced gardens, old villages and the large valley of Sóller with its many orange and olive trees. Many places attract tourists, Deià is also a refuge for artists of painting and music. Traditionally there are only a few objects for sale in the west. About half of the sales were concentrated in Sóller/Port de Sóller. Deià and its surroundings are considered to be absolutely top locations - in the generally high-priced area. Overall, the number of transactions declined in 2019. But the
prices are rising. There is a tendency towards a sellers‘ market here. At least some offer prices have shot up in 2019 - meaningful figures are only available for Sóller with +22.1 % and Valdemossa (+9.2 %). In the other places the number of offers is too small for a serious evaluation. Top country estates and coastal villas now cost up to 4.2 million euros in the area. For first-class apartments in Port de Sóller, one pays 400,000 to 1.2 million euros. A good townhouse in Deià is - with few current offers - between 1 and 3.5 million euros.
NUMBER OF REAL ESTATE TRANSACTIONS 2016-2019
350
337 312
312
300 250
230
200 2016 2017 2018 2019
16
Source: Ministerio de Transportes 11.03.2020
400
KENSINGTON | Market Report Balearic Islands 2019/2020
Port de Soller
Soller
Banyalbufar Valdemossa
K E N S I N G TON
AVE R AG E P R IC E S F OR V I LL A S
2018
2019
Top location/trophy properties 3.400.000
3.500.000
➠
Very good location
2.600.000
2.650.000
➠
Good location
2.000.000
2.000.000
➠
WEST
AVE R AG E P R IC E S F OR A PA RTMENTS
2018 2019
Top location/trophy properties 500.000
520.000 ➠
Very good location
450.000
460.000
➠
Good location
350.000
360.000
➠
all prices in Euro
Daniela Gawert Franchisee Valldemossa
SHOWROOM VALLDEMOSSA Calle de la Venerable Sor Aina N°1 Local 3 07170 Valldemossa Tel. +34 971 616 025 valldemossa@kensington-international.com
KENSINGTON | Market Report Balearic Islands 2019/2020
17
T HE NORTH
T
he property market in the northern municipalities between Pollensa and Santa Margalida has very different facets. The bay of Alcudia is a conurbation with a lot of tourism and a kilometre long beach. Pollensa offers high-priced villas, large fincas and estates. The town of Pollensa also has a reputation as an artist town. In the most important municipalities for the real estate market (Alcudia and Pollensa), transactions declined in 2019. Nevertheless, Pollensa and Puerto de Pollensa, the Bonaire and Sa Pobla areas remain particularly popular. Apartments in Puerto de Pollensa are the permanent hit, with prices
ranging from around 220,000 to over 1.5 million euros. Land plots are rare but sought after. The few offers on fincas in the north are usually between 1.2 and 5 million euros. Top villas reach prices of up to 5 million euros. The prices of villas, fincas and apartments have increased in 2019, although the offers are negotiable. Germans aged around 40 to 50 years dominate as buyers. Demand from Spaniards has also increased - they have outstripped the British in 2019. And there are also interesting new developments: Some high-quality village houses that are currently being built in Pollensa will come onto the market in 2020.
NUMBER OF REAL ESTATE TRANSACTIONS 2016-2019
1337 1300 1100 1100 900
1082 888
700 2016 2017 2018 2019
18
Source: Ministerio de Transportes 11.03.2020
1500
KENSINGTON | Market Report Balearic Islands 2019/2020
Puerto de Pollensa Pollensa Alcudia
Can Picafort
K E N S I N G TON
AVE R AG E P R IC E S F OR V I LL A S
2018
2019
Top location/trophy properties 2.500.000
3.000.000
➠
Very good location
980.000
1.100.000
➠
Good location
450.000
530.000
➠
NORTH
AVE R AG E P R IC E S F OR A PA RTMENTS
2018 2019
Top location/trophy properties 420.000
450.000 ➠
Very good location
350.000
350.000
➠
Good location
250.000
320.000
➠ Susanne Rodemann Franchisee Pollensa
AVE R AG E P R IC E S F OR COUNTRY HOUS ES
2018 2019
Top location/trophy properties 5.500.000 ➠ Very good location Good location
2.200.000
➠
900.000
➠
SHOWROOM POLLENSA Via Pollentia 9, 07460 Pollensa Tel. +34 971 533 323 pollensa@kensington-international.com
all prices in Euro
KENSINGTON | Market Report Balearic Islands 2019/2020
19
C ENTRE OF THE I S L A N D
M
allorca‘s island centre is basically a plain from which there is a view to the Sierra de Tramuntana. The mountains protect from the cold north winds in winter. Especially fincas and typical Mallorcan village houses are in demand. The proximity to Palma is also in demand - places like Santa María and Alaró are especially in focus. With an average of around 2,300 to 2,600 €/m2, these two places currently achieve the highest price level in the island centre. However, fincas are not available here for less than €700,000, top properties are at least around €3 million. Apart from that, the area is rather known for the fact
that here, one finds the cheapest apartments and village houses of Mallorca. The market is spread over 20 municipalities. Overall, sales figures have been relatively stable over the last three years, with annual sales of between 1,048 and 1,119 freely financed properties. The centre of the island is a buyer‘s market overall, although prices hardly moved at all in 2019. Mainly Germans and Englishmen of young or middle age bought in this area in 2019.
1200
1119
1100
1048
1056
1000 900 800
762
700 2016 2017 2018 2019
20
Source: Ministerio de Transportes 11.03.2020
NUMBER OF REAL ESTATE TRANSACTIONS 2016-2019
KENSINGTON | Market Report Balearic Islands 2019/2020
Inca
Santa Maria
Petra
K E N S I N G TON
AVE R AG E P R IC E S F OR V I LL A S
2018
2019
Top location/trophy properties 2.000.000
2.000.000
➠
Very good location
1.600.000
1.600.000
➠
Good location
1.300.000
1.300.000
➠
CENTRE OF THE ISLAND
AVE R AG E P R IC E S F OR A PA RTMENTS
2018 2019
Top location/trophy properties 350.000
350.000 ➠
Very good location
310.000
310.000
➠
Good location
260.000
260.000
➠ Daniel Malek Franchisee Santa Maria
AVE R AG E P R IC E S F OR COUNTRY HOUS ES
2018 2019
Top location/trophy properties 4.500.000 ➠ Very good location Good location
2.400.000
➠
1.000.000
➠
all prices in Euro
KENSINGTON | Market Report Balearic Islands 2019/2020
SHOWROOM SANTA MARIA Carrer Bernat de Santa Eugenia, 23 07320 Santa Maria del Cami Tel. +34 871 716 887 santamaria@kensington-international.com
21
N ORTH EAST
M
ajorca‘s north east is characterised by a wide variety of properties. Four golf courses and Rafael Nadal‘s Tennis Academy in Manacor are sporting attractions. Large estates and fincas are located in the interior of the country. Costa de los Pinos and Canyamel are coastal resorts with many villas, which cost up to 4.5 million euros here. Especially Artà is popular with buyers of Mallorcan townhouses. Renovated they are available for between 320,000 and 400,000 euros. Top properties can also cost 900,000 euros. And on the coast - in addition to the stock in well-known holiday resorts such as Cala Millor, Cala Ratjada or Sa Coma –
1452
1500 1400
1424
1353 1307
1300 1200 1100 1000 2016 2017 2018 2019
22
Source: Ministerio de Transportes 11.03.2020
NUMBER OF REAL ESTATE TRANSACTIONS 2016-2019
there is also a significant supply of holiday properties in residential complexes or urbanisations. For apartments, properties up to 350,000 euros are particularly sought after. In new building projects near the sea, however, prices are often even higher. The demand for fincas and apartments in this area was particularly high in 2019. There is also good interest in land, while villas are less sought after. Fincas are particularly in demand around Artà, where they are usually between 700,000 and 2 million euros. But also up to 4 million are possible. The nationality of the buyers is mostly German in the age group between 45 and 65. 2019 sales in the five municipal areas were different compared to previous years. While the numbers in Capdepera and Son Servera increased, they remained stable in Artà. On the other hand, Manacor and Sant Llorenç recorded significant decreases. Nevertheless, the entire east coast, with a few exceptions, remains more of a sellers‘ market.
KENSINGTON | Market Report Balearic Islands 2019/2020
Arta
Cala Ratjada
Cala Millor Manacor
K E N S I N G TON
AVE R AG E P R IC E S F OR V I LL A S
2018
2019
Top location/trophy properties 1.800.000
1.900.000
➠
Very good location
1.500.000
1.600.000
➠
Good location
1.200.000
1.200.000
➠
NORTH EAST
AVE R AG E P R IC E S F OR A PA RTMENTS
2018 2019
Top location/trophy properties 380.000
380.000 ➠
Very good location
340.000
350.000
➠
Good location
300.000
300.000
➠ Bree & Walter Corn Franchisees Arta
AVE R AG E P R IC E S F OR COUNTRY HOUS ES
2018 2019
Top location/trophy properties 2.500.000 ➠ Very good location Good location
1.500.000
➠
850.000
➠
all prices in Euro
KENSINGTON | Market Report Balearic Islands 2019/2020
SHOWROOM ARTA Carrer Monserrat Blanes 21 Placa del Conqueridor, 07570 Arta Tel. +34 602 576 483 | Mobil: +34 602 576 483 eastcoast@kensington-international.com
23
S OUTH EAST
T
he areas of Santanyí, Felanitx and Ses Salines are known for their beautiful calas and authentic coastal villages, which are not crowded by tourists. The way is short also to the miles long dream beach Es Trenc . Away from the coast you will find peace with old villages and a lot of rural charm. Fincas and mansions are very much in demand in this area, whereby the largest properties currently on offer cost between 3.5 and 8 million euros. Otherwise, good fincas are hardly available for less than 700,000 euros. The new building projects in the south east are interesting. Among them are modern finca properties (from 2.3 to 3
900
700 600
828
750
800
622 546
500 400 2016 2017 2018 2019
24
Source: Ministerio de Transportes 11.03.2020
NUMBER OF REAL ESTATE TRANSACTIONS 2016-2019
million) that combine traditional materials with modern design and the latest technology. Furthermore there are Mediterranean designed townhouses with pool (approx. 850.000 Euro). Especially in Porto Colom and Santanyí you can still find townhouses at top prices of 1.5 to 2.5 million euros. Near the beach there are high-quality apartment complexes for 300.000 - 600.000 Euros, the best is to look around in Colònia Sant Jordi, Cala Figuera, Cala d‘Or, Porto Colom or Porto Petro. Also building plots are desired. In rural areas they are mostly between 14,000 and 50,000 square metres and then cost about 250,000 to 850,000 euros. But also up to 1.5 million euros are possible for plots of land of more than 100,000 square metres that have an approved building project. The area around Santanyí is particularly in demand. German buyers dominate. In contrast to many other zones of Mallorca, sales figures in the south east will rise in 2019 compared to 2018. Prices have also risen slightly compared to 2018. They are also hardly negotiable.
KENSINGTON | Market Report Balearic Islands 2019/2020
Campos
Cala d‘Or Santanyi
K E N S I N G TON
AVE R AG E P R IC E S F OR V I LL A S
2018
2019
Top location/trophy properties 1.600.000
1.900.000
➠
Very good location
1.400.000
1.600.000
➠
Good location
1.200.000 1.300.000 ➠
SOUTH EAST
AVE R AG E P R IC E S F OR A PA RTMENTS
2018 2019
Top location/trophy properties 820.000
870.000 ➠
Very good location
700.000
745.000
➠
Good location
500.000
520.000
➠ Bree & Walter Corn Franchisees Santanyi
AVE R AG E P R IC E S F OR COUNTRY HOUS ES
2018 2019
Top location/trophy properties 4.500.000 ➠ Very good location Good location
2.500.000
➠
1.000.000
➠
all prices in Euro
KENSINGTON | Market Report Balearic Islands 2019/2020
SHOWROOM SANTANYI Carrer Palma 28, 07650 Santanyi Tel. +34 602 576 483 Mobil: +34 602 576 483 eastcoast@kensington-international.com
25
S OUTH
T
he municipality of Llucmajor has different faces outside the town centre: inland there are fincas with large agricultural areas. The municipality includes the tourist zone of S‘Arenal. Along the coast, between Son Veri and Cala Pi/ Vallgonera, there are also attractive urbanisations with holiday properties. This quiet area offers views over the sea and/or the Bay of Palma, as well as the fast connection to the capital. Further east, Sa Ràpita (municipality of Campos) with its summer houses and fish restaurants and its location near the Es Trenc beach is in demand.
1100
1006
1000
926 878
900 800 700
667
600 500 2016 2017 2018 2019
26
The average price per square metre for offers in Llucmajor rose by 5.5% in 2019 – to 3,061 €/m2. Germans and British are especially interested in the area. The south is more of a buyers‘ market with a wide range of offers: In S‘Arenal, apartments usually cost €100,000 to €250,000. But penthouses are also offered for 700,000 euros. Country houses are available from 250,000 euros to 4.5 million euros. Penthouses in the very good coastal locations are between 300,000 and 1.3 million euros.
Source: Ministerio de Transportes 11.03.2020
NUMBER OF REAL ESTATE TRANSACTIONS 2016-2019
KENSINGTON is very pleased with the development in the South – 2018/2019 brought the best results to date for the company in this region. And this even against the trend of a general decline in transactions (see graphic).
KENSINGTON | Market Report Balearic Islands 2019/2020
Llucmajor
K E N S I N G TON
AVE R AG E P R IC E S F OR V I LL A S
2018
2019
Top location/trophy properties 2.000.000
2.100.000
➠
Very good location
1.500.000
1.550.000
➠
Good location
1.400.000 1.450.000 ➠
SOUTH
AVE R AG E P R IC E S F OR A PA RTMENTS
2018 2019
Top location/trophy properties 450.000
480.000 ➠
Very good location
340.000
350.000
➠
Good location
300.000
310.000
➠
all prices in Euro
Sven Binnewies Franchisee Llucmajor
SHOWROOM LLUCMAJOR Ronda Migjorn N° 76 07620 Llucmajor Tel. +34 971 660 731 llucmajor@kensington-international.com
KENSINGTON | Market Report Balearic Islands 2019/2020
27
IBIZA
FORMEN T ER A
ME N O RCA 28
KENSINGTON | Market Report Balearic Islands 2019/2020
KENSINGTON | Market Report Balearic Islands 2019/2020
29
IBIZ A
T
he third largest Balearic island is one of the most exclusive locations in Spain. The party scene with the most famous DJ‘s and big clubs is known worldwide. But especially in the north you can still find seclusion, nature and real estate with rustic flair. Nevertheless, Ibiza‘s role as a summer hotspot drives the economy here. It is an international hotspot that also appeals to super-rich, top footballers, film and music stars. The epicentre for the luxury tourism, upmarket boutiques and top restaurants is Eivissa (Ibiza city). Here, and in the south/south west, is where the most is paid per square meter. Ibiza City is currently
NUMBER OF REAL ESTATE TRANSACTIONS 2016-2019
2400 2200
2043
2000 1800 1600
1634 1584
1400 2016 2017 2018 2019
30
Source: Ministerio de Transportes 11.03.2020
2447
2600
the municipality with the highest rents in the whole of Spain, at an average of 18.05 euros/m2 (source: El Pais). The Es Cubells street in Sant Josep is the most expensive location on the Balearic Islands because of its villa prices. In this area, the view of the rock, Es Vedrà, is very popular. The luxury segment dominates the sales offers throughout the island. The south is still the most popular. The most luxurious villas cost over 4 million euros. Good fincas are not available for less than 850,000 euros. The cheapest entry point is the west at Sant Antony, where you can get apartments in reasonable locations from 200,000 euros. However, already in 2018, a general decline in sales figures was noticeable - Brexit was showing its effect. This trend has continued in Ibiza City, Santa Eulària and Sant Antoni in 2019. On the other hand, the declines in Sant Josep and in the very small market of Sant Joan have stopped. Although prices in Ibiza are negotiable, discounts of more than a maximum of 5 to 10% should not be expected. Dutch, Italian, German and Swiss people dominate the market in Ibiza.
KENSINGTON | Market Report Balearic Islands 2019/2020
Sant Joan
Santa Eularia Sant Antoni Sant Josep
Jesus Ibiza
Formentera
K E N S I N G TON
AVE R AG E P R IC E S F OR V I LL A S – S OUTH
2018
2019
Top location/trophy properties 4.800.000
4.800.000
➠
Very good location
2.500.000
2.600.000
➠
Good location
1.500.000
1.500.000
➠
IBIZA
AVE R AG E P R IC E S F OR A PA RTMENTS
2018 2019
Top location/trophy properties 940.000
950.000 ➠
Very good location
525.000
530.000
➠
Good location
400.000
420.000
➠ Noelle Politiek Franchisee Ibiza | Jesus / Santa Eulalia
AVE R AG E P R IC E S F OR V I LL A S – NORTH
2018
2019
Top location/trophy properties 4.000.000
4.000.000
➠
Very good location
2.300.000
2.300.000
➠
Good location
1.200.000
1.200.000
➠
SHOWROOM JESUS SANTA EULALIA Avda Cap Martinet 17 07819 · Jesus (Santa Eulalia) Tel.: +34 971 863 943 ibiza@kensington-international.com
AVE R AG E P R IC E S F OR A PA RTMENTS
2018 2019
Top location/trophy properties 650.000
700.000 ➠
Very good location
450.000
450.000
➠
Good location
220.000
220.000
➠
all prices in Euro
KENSINGTON | Market Report Balearic Islands 2019/2020
31
MENORCA
M
enorca‘s attractions are its unspoilt landscape, tranquil natural harbours and secluded beaches. The island has been a UNESCO biosphere reserve since 1993, and around 43 per cent of its area is protected. Ciutadella and Mahón are the two largest cities with around 29,000 inhabitants each. There are only limited building possibilities, mostly in the tourist zones as well as in Mahón and Ciutadella. For example, the company Quabit is currently planning a residential complex with 50 modern singlefamily homes near the Son Parc golf course at prices starting at 557,000 euros (+ VAT). The renovation of
NUMBER OF REAL ESTATE TRANSACTIONS 2016-2019
1730
1800
1642 1600 1400
1363
1200 2016 2017 2018 2019
32
Source: Ministerio de Transportes 11.03.2020
1861
2000
houses is also important. Around 93% of the real estate business in Menorca in 2019 came from existing properties. There has been a slight drop in demand in Ciutadella. Apart from that, the island will show some stability in transactions in 2019. About two thirds of the buyers are Spanish. The rest are mainly Europeans, with the French dominating. Prices moved relatively little in all municipalities in 2019. In general, the price level is lower than on the neighbouring islands of Mallorca and Ibiza. On average, the most is paid in Ciutadella. At the beginning of 2020, the price per square metre here was 2,386 euros. On average you have to invest about 341,000 euros for a property. Many apartments in Menorca are between 100,000 and 200,000 euros. However, luxury properties in Mahón can cost up to 750,000 euros. In good locations like Cala Blanca or Cala Morell in the west, villas often cost between 350,000 and 900,000 euros. For luxury properties by the sea, however, up to 4 million euros is also possible. Simple country houses are available from 200.000 euros. Country estates are available from 2.2 million euros in the interior of the island - directly on the coast with access to the sea they often cost up to 7.5 million euros.
KENSINGTON | Market Report Balearic Islands 2019/2020
Ciutadella de Menorca
Maó
AVE R AG E P R IC E S F OR V I LL A S
2018
Top location/trophy properties 1.500.000
2019 1.500.000
➠
Very good location
900.000
900.000
➠
Good location
600.000
600.000
➠
AVE R AG E P R IC E S F OR COUNTRY HOUS ES
2018 2019
Coastal location
7.000.000 7.000.000 ➠
Countryside
2.000.000
2.000.000
➠
AVE R AG E P R IC E S F OR A PA RTMENTS
2018
2019
Top location/trophy properties
600.000
630.000
➠
Very good location
500.000
510.000
➠
Good location
350.000 350.000 ➠
all prices in Euro
KENSINGTON | Market Report Balearic Islands 2019/2020
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