José Martín Morillo,
Managing Director Pollentia Properties & Associate Partner Equus Mallorca Real Estate
2017 was a good year for the property market in Mallorca, however the outlook for 2018 is even better so if you are thinking of acquiring a property here, now it´s the moment to do so. You never know, prices might rocket again!
At the present time there is a healthy market for both sellers and buyers. Mallorca is still a good place to invest in and is a financial safe haven.
What has surprised me most about this recent period in the housing market in Mallorca is the stability of prices. They haven´t increased to the same extent as before recession a few years back. The market is more stable now, with very little financial intervention by banks and this makes prices more realistic. Prices have increased only very slightly and this increase can easily be absorbed into the market now and in the future. The market in Mallorca is not overpriced in general.
The summer months are obviously when there are more viewings. This is logical and July, August and September are usually good months. However, potential buyers keep an eye on the market throughout the whole year.
The reason behind this is obvious. Possible buyers have more time in the summer months to view properties and this is when it is more feasible to purchase a property. The sun is the best possible estate agent that we have and is our most efficient ally when it comes to emphasizing the charms of our properties.
The cultural identity, the local cuisine and customs are among the key factors that motivate buyers to purchase in Mallorca.
They also value the mild climate which produces positive feelings of well being and the possibility of practising outdoor activities all year round. For example, cycling and bird watching are two of the favourite pastimes of British property owners on the island.
Britains are one of the nationalities that most identify with the Mediterranean, albeit not the only one. Mallorca is also popular with buyers from the North of Europe and other overseas countries. Due to the popularity in the UK of buying a property to renovate, most British buyers have no qualms about doing the same in Mallorca. Of course, local ways of working and project management have to be taken into account.
Prices will remain stable during the whole of 2018
The inland localities of Mallorca will increase in popularity due to the fact that our clients have come to realize that Mallorca is not just sun and beaches.
The rental market is producing very good dividends and some people think that with the new laws owners with properties rented out for many years will be better protected. Some of the regulations proposed by the Balearic government will possibly provide more stability to those owners who make sure their properties are in strict accordance with the Balearic tourist laws.
In conclusion, I would say that prospective buyers have never been in a better position to acquire a property in Mallorca and to be able to subsequently rent it out, making this a very sound investment opportunity.
I wish you all the best for 2018 and hope to meet you as a client in the very near future!
