Real estate agents specialised in the luxury real estate sector in Mallorca

Real estate agents specialised in the luxury real estate sector in Mallorca

22/11/2022

One Mallorca

Real estate in Mallorca: a great investment opportunity


The real estate sector is one of the main economic engines of Mallorca. Recent data and future forecasts point to luxury real estate as the most relevant stimulus to this development. 

Given this reality, and taking into account the current context, it is interesting to invest in a real estate franchise. Would you like to know more about it?


How has the market performed over the last 3 years?


The last three years have been complicated and turbulent in all economic and geographical spheres, both in Spain and abroad. However, the Balearic Islands have traditionally been a highly sought-after real estate destination for the German, British and Scandinavian public. Together with Madrid and Barcelona, they constitute the main Spanish real estate market. Thanks to this, it has enjoyed a certain stability during these years of financial crisis.

In fact, in the financial and real estate crisis from 2008 to 2012, losses in value in Mallorca were lower than in the rest of the country. In the most recent crisis, caused by the coronavirus, the Mallorcan luxury real estate sector also held up better. Although sales slowed down in 2020, prices remained stable. And, in the last quarter of this year, this situation has begun to be left behind. 

The analysis of the Balearic real estate sector in this period reflects revealing data:

  • In the first nine months of 2021, privately financed housing sales increased by 53% compared to 2020. They rose from 7863 to 12 038.
  • According to the Ministry of Transport, the value of these transactions was even higher. The difference reached 84 %. Why? Because the higher priced homes were the most sought after.
  • In December 2021, the revaluation of the average selling price of housing increased by 8.1 % compared to that month in 2020.


As you can see, the results could not be clearer. It is a consolidated real estate sector, stable, reliable and resistant to the most complicated economic situations.

In terms of the origin of homebuyers in Mallorca, Germans have increased considerably since 2021. If the influence of Brexit is taken into account, it is easier to understand why Germans have overtaken the British in market share. Germans account for 10.4 %, compared to 9.9 % for the Anglo-Saxons.


Some additional interesting facts


70% of the holiday properties in the Balearic Islands are located on this island and 50% of them belong to the luxury real estate sector.

In terms of the number of transactions over the last three years, these are the figures:

  • Balearic Islands: 15 581, 11 460 and 16 059 (2019, 2020 and 2021 respectively)
  • Mallorca: 12 306, 9001 and 12 799 (ídem)


And, in terms of transaction value, these are the annual differences for the islands as a whole:

  • 2019: 4148 billons of Euros
  • 2020: 3641 billons of Euros
  • 2021: 5945 billons of Euros


What are the prospects for the luxury real estate market in Mallorca in the coming years?


Obviously, the analysis of the Mallorcan real estate sector during the crisis encourages us to be very optimistic. Any real estate franchise has a great opportunity in front of it. Would you like to take advantage of it?

Just think, for example, that 22.1% of the luxury properties in Spain are located in the Balearic Islands. Consider this fact: out of every three residential properties in Spain valued at over 3 million euros, one is on these islands.

Its public is, logically, of the highest standing, and it is the sector that, in times of crisis and post-crisis, performs best. The Mallorcan coastal areas, moreover, are where the main supply of these luxury homes is concentrated. You can find a price range between 1 and 20 million euros, although the average is between 7 and 10 million euros.

Even within this segment, any real estate franchise sees an even greater opportunity in the ultra-luxury segment: the tourist flow of this type has grown exponentially in Mallorca and Ibiza after the pandemic!


Reasons / advantages to obtain a real estate franchise specialising in the luxury sector in Mallorca


All in all, a quick analysis of the Balearic real estate sector shows the great business opportunities it offers. Entering it with a real estate franchise offers significant advantages:

  • Accelerates the process of implementation, start-up and amortisation of the business.
  • Reduces the investment of time, money and resources required before starting to invoice.
  • It allows you to take advantage of the know-how, visibility, synergies and commercial image of a reference brand.
  • It makes it possible to access an expanding economic market, with a high volume of business and great profit possibilities.


Are you looking for a great investment opportunity?


With a real estate franchise like One Mallorca, the chances of success are absolute. Participate in the luxury real estate sector in Mallorca and get a great return on your money with a high interest rate. The analysis of the current real estate sector could not be more positive.


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