As I constantly say (sorry for being boring and labouring the point!!) the Mallorca property market has defensive qualities ie some very important inherent qualities that protect it when the going get’s tough and push it forwards when we move into better times. On the demand side we have the strong “Mallorca brand” and a broad and diverse source of international demand, amongst other things, but what about the supply side; what dynamics are operating here to support Mallorca residential real estate as a sound long term investment?

• At the heart is the very simple fact that it’s an Island and they don’t “make it any more!!” This is true of Mallorca as a whole but also some of the key sub locations:
  • Front line to sea – few if any plots still remain to develop and with ever stricter planning rules, don’t expect this to change
  • Second – third line etc with sea views – ditto! Obviously the supply is greater, and hence prices are cheaper, but with the strict planning situation it is hard to see any significant increase in supply save from building out the last few plots and refurbishing / redeveloping existing stock
  • Rural including the Tramontana Mountains – Within the best area, including the UNESCO World Heritage Site Tramontana Mountains, again very few new development plots remain and as each year goes by the amount of land needed to develop becomes higher, further limiting supply. Furthermore the idea that one could build semi legally or downright “illegally” and then sit back and enjoy your investment is very much something of the past. Much more stringent measures are in place to control building work and heavy fines and demolition orders are increasingly common and are becoming, thank goodness, the order of the day!
  • Palma Old Town and other historic village / town houses etc – yes ditto again! The supply is restricted for the most obvious of reasons!
• Planning controls – probably said enough already to cover this point. In summary all the political parties are in general agreement that new development must be limited and controls on illegal construction similarly clamped down upon. With a coalition of left leaning – green political parties in control, their position seemingly strengthening, along with solid support from the electorate for their proposals, I expect this tendency to consolidate

• Security – While no where is immune from either local or international security concerns, as an Island the security back drop is better than most. At a local level, crime is relatively low and when looking at the international picture, and concerns such as terrorism, one only has to look at the record tourist numbers arriving in Mallorca this year to see that this is an important factor for visitors. Clearly this can be translated into the mind set of any potential investor / buyer, whether they are looking for a straight investment or a second home / relocation. These concerns, unfortunately, I fully expect to remain and probably increase in, at the very least, the short – medium term.

The only conclusion I can reach is that Mallorca Real Estate is and will remain a very sound choice. If worries (mainly economic) return to the international markets I expect Mallorca property to be one of the “safe havens” sought by investors while, if things generally remain stable or slowly improve, I fully expect strong demand as an increasing number of investors look for both a safe home for their money and their families.

If you are interested in purchasing a home in Mallorca, be it a development or refurbishment project or a key ready property to move into and “enjoy” I would be delighted to help you. As a Chartered Surveyor and experienced valuer and Property Finder here in Mallorca I am best placed to find the right property and guide you throughout the process, taking the strain and stress away from you as buyers.

Our Novi Property Mallorca web site showcase a very small number of the properties available on the market at any moment in time, and that we can offer, but for a full property search do contact us and we would be delighted to identify buying opportunities throughout the market.