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Property & Interiors

Mallorca Property Investment in 2024

Real Estate agency window.  Photo Credit - Nemesio - stock.adobe.com
BY CLAIRE MILLER

Photo Credit - Nemesio - stock.adobe.com

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With its stunning landscapes, rich cultural heritage, vibrant lifestyle and year-round sunshine, it’s no wonder Mallorca continues to captivate real estate investors. So how does the real estate market look in 2024?  Let’s delve into the current landscape to find out more. 

One of the defining characteristics of Mallorca's real estate market is it’s international appeal. Over recent years, the island has witnessed a significant influx of foreign buyers, drawn to its Mediterranean charm and investment potential. Foreign buyers constituted over 30% of property transactions on the island in 2023, with notable interest from European countries such as Germany, the United Kingdom, and Scandinavia, as well as increasing attention from non-European markets like the United States. 

Garden of luxury Villa

Foreign Investment

For those considering property investment in Mallorca, it is essential to conduct thorough research and seek expert advice to identify properties that work with your goals and budget. Although amongst the most expensive on the island, prime areas such as Palma, Port d’Andratx and Portals do offer predictable investment, stability and premium returns in terms of resale, rental and for your own enjoyment of living in these stunning & vibrant areas.

 

The North of the island also holds some great opportunities for investment, at comparatively more mid-range prices (for Mallorca). The stunning coastal areas of Pollença, Port de Pollença & Alcudia offer both mountain and coast, and some fantastic investment opportunities due to their increasing popularity with tourists from all over the globe. A 4-bed Finca with pool, grounds and the all important tourist license (allowing short-term tourist rentals) could stand to net you upwards of 100,000€ per annum from holidaymakers.

 

And if you’re up for more of a project or longer term investment, exploring up-and-coming areas that are more off the beaten track can yield lucrative prospects. Mallorca’s popularity with tourists is increasing further still - an estimated record high of 12 million people visited in 2023, and property values continue to rise island wide. Investing now and sitting on the property longer term or renovating and flipping the property, could generate extremely impressive yields. 

The average cost per square metre of property in Mallorca is still on the rise! As of January this year (2024) the average house price was €4,083 /m2, an increase from 2023 where it stood at €3,706 /m2.  The cost of property in Mallorca varies wildly depending on factors such as location, property type, and amenities.

 

Prime coastal areas with luxury properties and high tourist demand such as Port d’Andratx and Deià can cost as much as €8.687 /m2 - over twice the island average, and a whopping 4 times the national average house price in Spain.  Bargains can still be found however when you invest in more rural locations or venture more inland to areas which attract less tourists such as the lovely town of Sa Pobla where the average price is € 1,897 per m2 or Felanitx where your money goes even further at €1.406 /m2. 

View of Deia in Mallorca

Cost Variations

Location, Location, Location

Deià, Mallorca

View of Pollensa Bay, Puerto de Pollensa / Port de Pollença, Mallorca

Mallorca's real estate market continues to evolve, driven by a dynamic mix of local demand and increasing international interest.  With its diverse range of properties, stunning natural beauty and strong investment fundamentals, the island remains a prime destination for those seeking to own a slice of paradise. Whether you're drawn to the cosmopolitan allure of Palma or the tranquil charm of Mallorca's North coast, there's no shortage of opportunities to find your perfect piece of property in this enchanting island paradise.

Port de Pollença, North Mallorca

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