Land in Mallorca for Sale
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Land Plots in Mallorca - Key Considerations for Buyers
Mallorca is a luxurious European resort destination, enticing numerous Central European residents, mainly from Germany, to contemplate property acquisition following their visits. The real estate market in Mallorca is renowned for its premium pricing, with the average cost per square meter reaching €3,400. Over the past five years, this market has exhibited significant growth, tallying up to 28.7%. Forecasts further suggest an acceleration in this growth trend.
To delve deeper into the evolving dynamics of the property market, you can explore our comprehensive report on 'Property Prices in Mallorca - Current Market Trends.'
Contents:
The island's burgeoning real estate demand has piqued the interest of investors, particularly those representing construction firms. Investing in land plots on the island is regarded as one of the foremost methods for capital deployment.
Purposes for Acquiring Land in Mallorca
Land in Mallorca serves many purposes, making it a versatile investment choice. Some of the ordinary purposes for which land is acquired on the island include:
- Buy a plot of land in Mallorca for housing
- Buy a garden in Mallorca
- Buy a recreational plot in Mallorca
- Buy land for raising livestock or growing agro-crops
- Buy forest in Mallorca
- Buy a plot of land in Mallorca with a sea view to build a luxury villa
- Land in Mallorca as an investment
Mallorca, spanning an area of 3,640 km2, has limited land available for sale due to various factors. Geographical constraints play a role, as does the imposition of construction restrictions in specific island areas.
Partial restrictions typically dictate that no building can occupy more than a certain percentage of the land area, typically between 10% and 30%. These restrictions vary by town hall (Ayuntamiento) and are more permissive in the north and southwest, where up to 30% of the plot can be built. In central Mallorca and the southern and eastern regions, municipalities often allow only up to 10% of land area to be developed, and sometimes even less. This is due to the nature reserve status of land in Mallorca's southern and eastern parts.
The Ayuntamiento enforces Complete building restrictions when the land is situated within a designated nature reserve. In such cases, the land is frequently used for agriculture, including grape cultivation, olive and orange production, or leased to local farmers or held for potential resale."
Demand for Land in Mallorca
Land in Mallorca is becoming increasingly sought-after, driven by its scarcity and unique geographical characteristics. The limited availability of plots on the island and other influencing factors contribute to this growing demand.
Buyers predominantly seek plots in Mallorca with existing building permits, as they offer significant time and effort savings in the construction process. While these plots may command a premium of 50% to 100%, their appeal is undeniable. The southwest region of Mallorca is notably the most accessible area for acquiring such pre-approved plots.
There is also a strong demand for Mallorca plots without immediate planning permission, yet with the potential to obtain it. These plots offer an attractive opportunity at prices ranging from 95,000 to 450,000 euros.
For accurate information regarding the feasibility of securing planning permission for a chosen plot, we advise consulting a professional architect or civil engineer.
In the heart of Mallorca, the acquisition of gardens and forested land remains highly popular. This trend is particularly prominent among German citizens, who often utilize these plots as weekend getaways to immerse themselves in the natural surroundings with their families.
Cost of Land in Mallorca
In Mallorca, the cost of land varies depending on its intended use. Here are the key pricing factors:
- Land for Building:
- The average cost for building land in Mallorca is approximately €820 per square meter. These plots usually exceed 2,000 square meters in size.
- Pricing can fluctuate based on location. For instance:
- In the prestigious Cala Vinyes area in the southwest, a 1287 m2 plot with sea views is available for €998,000.
- Santa Ponsa offers a 1200 m2 plot in the southwest for €743,000.
- In Costa d'en Blanes, also in the southwest, a 1340 m2 plot with a completed building project is priced at €650,000.
- In Palma's San Agustin district, a building plot with sea views and a finished project can be acquired for €690,000 (Ref. SU-1358).
- For those interested in building a finca in the southeastern part of the island, a 15,000 m2 plot with a completed project in Felanitx is priced at €398,000 (Ref. FE-0816).
- Land for Commercial Use:
- Commercial land on Mallorca typically offers larger areas, often up to 120,000 square meters. The average cost per square meter is lower, approximately €75.
- Examples include:
- In Sant Joan, in the central part of the island, a 42,738 m2 plot is available for €850,000 (Ref. YC-1819).
- In the Pueblos Sa Pobla region in the north of Mallorca, a 117,000 m2 plot can be purchased for €880,000 (Ref. SB-1337).
The most affordable land option in Mallorca, priced at €95,000, is located in the north and is suitable for agricultural use, such as cultivating oranges, grapes, or olives. This plot spans 7,600 m2 and is not intended for building.
The lowest-priced option for those seeking a building plot starts at €235,000. This plot, located in the southwest of Pueblo Son Ferrer, covers an area of 322 m2 and comes with an approved project and building permit.
The most expensive building land in Mallorca costs 3,000,000 euros. It is located in the luxury location of Port d'Andratx. It is a plot with a sea view in Mallorca and a building permit. The plot area is 2,964 m2.
Factors Impacting Property Values in Mallorca:
|
Building land |
Increases the costs |
|
Plot with sea view |
Increases the costs |
|
Lack of communication |
Reduces costs |
|
Building permit and project |
Increases the costs |
|
Property in a prestigious location |
Increases the costs |
With advancements in technology and the construction industry, plots of land with uneven terrain or hillside locations have gained increased value and price. Landscape designers have honed their skills in creating optimal projects, particularly in areas with varied land contours. Therefore, when considering the purchase of land in Mallorca, it is advisable to seek guidance from an experienced architect who can comprehensively assess the property's strengths and weaknesses.
Building a Home in Mallorca: What Are the Costs?
Various factors influence the decision to build a house rather than purchase one, each unique to individual preferences. Some individuals never find their ideal home on the market, while others seek cost-efficiency, recognizing that constructing a house can be more economical than buying a ready-made property. Investors often embark on home construction projects in Mallorca as a lucrative venture. For some, it's the fulfilment of a lifelong dream to create a custom-built home on this picturesque island.
Guide to Building a House in Mallorca: Step-by-Step
Embarking on a house construction project in Mallorca involves well-planned steps. Here's a comprehensive guide:
1. Selecting and Purchasing Land: Consult with a seasoned Mallorca property seller to identify optimal land-buying options, ensuring cost-effectiveness and efficiency.
2. Architect Selection: Meet with multiple architects to find the one who best aligns with your vision, as this partnership may span 1-2 years.
3. Documentation from Ayuntamiento: Your chosen architect will procure essential documents from Ayuntamiento outlining legal prerequisites and potential restrictions.
4. Project Plan Approval: Review and approve the project plan presented by the architect, making any necessary adjustments.
5. Building Permit: The architect will initiate the application for a building permit from Ayuntamiento, with the approved project as its foundation. The timeframe for securing this permit typically ranges from 3 to 12 months.
6. Contracting a Construction Company: Carefully assess the competence of construction companies, review past projects, and visit their offices before selecting.
7. Construction Completion: Following the construction's conclusion, the architect will prepare the "Final de Obra" (final declaration), prompting a municipal inspection known as "Final de Obra."
8. Land Registry Amendment: Detailed descriptions of the construction are recorded in the "Obra Nueva" declaration. To make the necessary adjustments, visit a notary.
The minimum construction cost for a Mallorca home is €1,000 per square meter, exclusive of architect fees, approval documents, government levies, and notary services. Additionally, allocating a 30% buffer for unforeseen expenses and the cost of the land is prudent when budgeting for your project.
Sample Cost Estimation for Constructing a House in Mallorca
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Cost item |
Total |
|---|---|
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Building land (incl. additional purchase costs) |
300,000 euros |
|
Construction costs of 180 m2 (1000 €/m )2 |
180,000 euros |
|
Additional costs for architects and government fees (30%) |
54,000 euros |
|
Additional costs for architects and government fees (30%) |
18,000 euros |
|
Total costs: |
552,000 euros |
|
Total price for 1 m2: |
3006 euros |
The Price of €3,006 per m² for New House Construction in Mallorca: A Smart Investment
At €3,006 per square meter, constructing a new house in Mallorca presents an exceptionally reasonable opportunity. This becomes evident when the current per-square-meter cost for new builds on the island ranges between €5,000 and €7,500. By acquiring a building plot, you can realize substantial savings, typically ranging from 25% to 50% on house construction costs, regardless of whether you have a background in construction.
Occasionally, homeowners with existing properties opt to expand their living space by adding an extension. It's essential to note that the process for building an extension in Mallorca mirrors that of constructing a new house on a vacant plot. Costs are calculated based on the extension's area.
For instance, for a 100 m² extension:
- Construction cost: €1,000 per m²
- Additional expenses for architects and permits (30%): €30,000
Total: €130,000
A 200 m² extension would amount to €260,000, while a 300 m² extension would total €390,000.
Applying this approach, constructing a 100 m² house would amount to €140,000, excluding the cost of the land plot. Typically, land plots for such construction would be priced at no more than €150,000. In total, a 100 m² house would cost around €290,000.
In contrast, a finished new house in Mallorca typically starts at €550,000. This calculation highlights potential savings of up to €260,000 when opting for new construction.
How to buy a property in Mallorca
The rising popularity of this resort destination has led to increased construction on the island, resulting in higher plot prices. For smart investors looking to protect their investments, buying land in Mallorca for future resale is a wise choice.
The key difference between purchasing land and ready-made properties is the potential savings, which can be as high as 50%, when you build a house on a plot. However, this option comes with a construction timeline of 1-2 years.
It's essential to be aware that local authorities often have specific maintenance requirements for vacant properties in Mallorca. This includes maintaining visible areas, such as regular grass and tree trimming and ensuring no debris or waste accumulates on the property.
Explore our extensive directory at Yes! Mallorca Property, which features 40 available plots on Mallorca. We update our listings regularly, bringing you fresh opportunities daily. Our portfolio includes plots from private owners and those intended for commercial purposes.
As a valued client of Yes! Mallorca Property, you'll have access to exclusive distressed property sale offerings in the Mallorca real estate market. Join us today, and let our expert team guide you to the most promising opportunities.