Mallorca's residential property market grows and breaks records again in 2022
Mallorca is one of the most popular holiday destinations in Europe. The high demand for property, especially during the tourist or Easter season, brings profitable rentals and an annual yield of up to 8% (before deduction of taxes and expenses).
- Boom demand for holidays in Mallorca
- Why is Mallorca popular with foreigners?
- Real estate in Mallorca as an investment tool
- How rising demand to buy property in Mallorca is affecting prices
Mallorca is firmly in the lead amongst the destinations in 2022, popular among citizens from Germany, Austria, Switzerland, the Netherlands and the UK, as the holiday destination for Christmas and summer holidays, and as a place to live while working remotely.
The second factor is the island's location, protecting it from many problems. For example, during the pandemic, the number of people falling ill in Mallorca was much lower than on the Spanish mainland.
Freddy Aspers, German YES! MALLORCA PROPERTY broker
"Speaking to expats living in Mallorca and expats from other countries, I often heard they were happy to have homes here. They felt safer than at home during the period of COVID-19 isolation".
Tourist demand is also fuelling the housing market. The high interest in property in Mallorca is growing, particularly amongst foreigners. According to the General Council of Notaries, it was the foreigners who purchased 56,272 properties in the last ten years.
And while during the COVID-19 pandemic, people bought on the mainland bought less, and the market only began to recover slightly in the second half of 2021, the Balearic Islands and Mallorca have not been affected as significantly.
Mallorca and its neighbouring islands have been favourite property investment markets for many decades.
A flat, second home, finca (country house) or villa for sale in Mallorca have always been regarded as a sound investment not only as a means of financial security but also as an opportunity to significantly improve quality of life. Add to this the large number of regular and low-cost flights from German and European cities and the excellent infrastructure on the island itself for both living and leisure.
The top three countries whose citizens buy homes in Mallorca are the Germans, the British and the French. They were among the first to realise the investment appeal of the island. For the most part, they bought a second home for personal residence or lease.
The property market on the island has been very stable and has been growing steadily for a long time. This is one of the main reasons why real estate in Mallorca is considered a sound investment.
The high demand, however, has a downside. The supply available in the Mallorca property market is not enough to meet it, and it causes prices to rise.
What is happening to the Mallorca property market in 2022 - read our detailed report "Mallorca Property Price Overview".
But while home values are rising, the luxury property market skyrocketed. Experts understand that the demand for luxury properties (luxury villas and fincas) in Mallorca in 2022 will be the highest in the past three years.
As an example of villas that are in demand in this segment is a luxury new villa with panoramic views of the sea and Port Adriano with the cost of € 6. 250 000.
This modern luxury villa offers a prime location above the harbour of Port Adriano, with an unimpeded view of the sea and the coast of Nova Santa Ponsa.
Freddy Aspers, YES! MALLORCA PROPERTY broker
"As you can see, demand is rising for both quality and luxury properties in Mallorca, so if you are planning to buy a property worth €500,000 or more, you should hurry up as prices will continue to rise.
If you have been planning on selling your Mallorca property, now is the time to do so - demand for quality properties is now higher than supply. The market has become very fast, so there is every chance of making a maximum profit on the sale. As for the fade of the hype, highly likely it will not happen this year. We are still seeing the results of pent-up demand due to Covid. And talk of a future recession in Europe due to the events in Ukraine will further spur the conversion of accumulated money into a safe asset - a second home in Mallorca."
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