Engel & Volkers reports a record year with unprecedented multi million Euro sales
Engel & Volkers Mallorca, with 16 offices throughout Mallorca, is reporting a record year (the best since 2008) with sales up by an average of 30%. However in the South West, where 40% of all property sales on the island were made last year, E&V sales were up by 70% over 2012. In addition, unprecedented multi-million Euro sales were made with a top sale of 10M Euros and an average sales value of 1.36M Euros. In south west Mallorca, Engel & Volkers has 50% market share of the premium market for properties of 7M Euros and above.
Last year demonstrated that buyers are now prepared to invest money once again in holiday homes since the crisis began and the average spend this year, outside of the southwest region, has been in the region of 750,000 Euros. All the offices report that buyers (mainly German speaking, British, Scandinavian and Russian) are making offers faster in fear of losing the deal and that more completed deals are closing near to the asking price with average negotiation between 5%-14% off the asking price.
Spain’s real estate sector is showing the first positive signs of recovery. According to data from the *Spanish National Statistics Institute, the first small prices increases since 2010 of 0.7% have been registered with a 2% increase in the Balearic Islands as the top region for price recovery in Spain.
Furthermore, sales to foreigners in the Balearic Islands have helped fuel the market and according to figures released by the Spanish National Notary Association in Spain*, property sales to foreigners have doubled in The Balearic Islands since 2008 from 1,642 properties sold in that year to 3,571 in 2012. German speaking buyers account for 1 in 3 property purchases followed by Scandinavians, British and Russians. (*Source: El Mundo, December 11th, 2013).
A major trend is the increased demand for cutting edge modern architecture and, at the top end, for bespoke villas in prime locations where the architecture and views are the main focus and the price tag becomes secondary (see examples at end of this press release).
The combination of a protected territory (40% of Mallorca’s territory is protected) together with local authorities enforcing strict building regulations, pushes new plot prices up to a premium. In recent years, investors have been buying up existing properties, particularly on prime seafront positions, only to tear them down and start again.
Says David Scheffler, Director General, Engel & Volkers Spain; “Our sales figures for Mallorca confirm that of the national statistics and provide a good indicator that Spain’s real estate sector is moving upwards. In 2013 Engel & Volkers Mallorca sold more properties at the top end than in any other year of our 12 years of operations in this area. This year we believe that good plots in prime locations will become increasingly difficult to obtain and prices will increase for top end property in the most desirable 3A locations with views/privacy/land”.
For more information, visit engelvoelkers.es.
