The luxury real-estate market didn't really falter during the economic crisis, certainly not like the lower ends of the market did, and with improved economic circumstances it's doing better than ever. Demand, principally from overseas, is leading to price rises of up to 50% in some parts of Majorca, such as Andratx and Calvia. The real-estate agency Engel & Völkers was involved in transactions worth just under 220 million euros in the first half of the year. This was almost 80% higher than last year and was the highest increase in the country: the national average growth has been 45%.
The most expensive property sold so far this year by Engel & Völkers was one for 7.8 million euros in Puerto Andratx. This led to the office in the area having the second best results of all its offices in the world.
It isn't only better economic times that are driving the market. The agency says that there has always been high demand from the British, German and Scandinavian markets for quality properties in exclusive locations. In Palma and Son Vida, the prices have gone up by 10% since last year.
This demand resulted in an average price between January and June of 1.3 million euros, more than double the Spanish average of slightly over 600,000 euros.
A further factor is that despite Brexit and the volatility of the pound, the British market is still interested. Indeed, in some areas of the island requests for information from potential British buyers have trebled. Florian Hofer, director of Engel & Völkers Balears, concludes that this is a clear sign that buyers are seeking a stable and safe market in which to invest.