Mallorca is thriving. And so is its dynamic real estate market. The island’s Mediterranean climate, natural beauty, and easy accessibility continue to attract worldwide buyers and investors, and topping Forbes Magazine’s “Hot Travel Destinations” of 2023 won’t have hurt either. Or the introduction of direct flights between New York and Palma's Son Sant Joan Airport, the most well-connected airport in the Mediterranean.
As the market leader when it comes to selling properties in Mallorca, the experts at Engel & Völkers are forecasting a stable market development on the island for the rest of the year - and that despite global challenges, volatile financial markets and more difficult financing conditions. This is due to a consistent international demand for high-end properties on Mallorca, coupled with a desire for a high quality of life, excellent accessibility, as well as long-term value stability, making this island one of the most sought-after holiday property markets in the world.
Read on to learn more about the latest trends and tips to help you navigate the fast-paced market effectively and take advantage of the best opportunities.
Sustainable Living Takes Centre Stage
Taking action to protect the natural world through more conscious and responsible living is now more than just a hot topic. Sustainability is no longer just a buzzword. Since 2022, there has been a greater demand for eco-consciously designed properties with green features and renewable energy solutions. Clients with a conscience are seeking homes with water treatment systems and sustainable energy supplies, such as solar panels. In the central region of the island, for example, more sustainable construction using local and natural materials is rising in popularity alongside the desire for self-sufficient homes. Local and international buyers are getting on board to help reduce carbon footprint emissions to help preserve the Balearic Islands, and the world, for future generations.
Last year, the government passed a new tourism law to help reduce pollution and create a more sustainable and regenerative model. Now hotels must have more efficient heating systems and solid future plans for a more circular economy. Disposable plastics have been banned throughout the Balearic archipelago. Areas around the island are being transformed to help reduce noise and air pollution, such as the new Club de Mar development on the Paseo Maritimo. Engel & Völkers is so committed to environmental causes that, following each sale, we contribute to the Mallorca Preservation Foundation. This local initiative is helping to preserve and restore the island's natural assets, from marine conservation and organic farming to the advancement of environmental education and the promotion of sustainable development. This year, Engel & Völkers will donate over 50,000 euros.
Evolving Work-Life Balance
Traditional work trends continue to change in a post-pandemic world, where remote working and hybrid models are more popular than ever. And with this flexibility to work from home, or at least out of the office, property owners have more free time to spend in Mallorca all year round. As a result, the summer season is becoming longer, and hotels and restaurants are staying open for extended periods compared with previous years. In Palma last winter, around 80% of the 75 hotels stayed open because their rooms were in demand. Within real estate, people are now seeking homes with offices and in-built technology to accommodate remote work and flexible living arrangements. Clearly, the potential to live and work on this Mediterranean island in a property surrounded by natural landscape is a healthier and happier alternative to working in any big city.
Wellness-Oriented Living on Mallorca
Health is wealth, they say. And following the pandemic, people have really started to prioritise their well-being — both at work and at home. This may explain the increased demand for properties surrounded by nature and fresh air, with interiors that integrate the latest wellness and health-focused amenities like fitness centres with spas, meditation gardens, and nature-inspired spaces. Self-sufficient properties are on the rise, with efficient energy supplies and large outdoor areas where residents can grow their own organic vegetables and wine, for example. And, of course, just being on Mallorca contributes towards a healthier lifestyle. With over 300 days of sunshine a year, some 200 beaches, 400 kilometres of hiking trails, 2000 kilometres of cycle paths, and 23 golf courses, it is easier to be active and more mindful here.
The meaning of “luxury” has also shifted, with the Mallorca real estate market becoming increasingly focused on contemporary properties with sustainable features, smart home technology, and exceptional amenities. Buyers are finding these top-quality homes in areas like Son Vida, Palma’s most exclusive neighbourhood, the southwest, and all around the island. There is also increased demand for exclusive developments offering privacy and bespoke experiences that cater for even the most discerning buyers. Additionally, Mallorca is developing in terms of high-quality tourism, offering a wealth of fine dining restaurants, 10 with a Michelin star, plus extensive arts and cultural activities, and sports. There are also a high number of 5-star hotels and new luxury resorts like Ikos Porto Petro, The Lodge Mallorca near Sa Pobla, and Sir Richard Branson’s Son Bunyola Hotel in Banyalbufar.
Since the pandemic, the real estate market, ourselves included, has moved towards digitisation, with virtual property tours, augmented reality, and digital platforms continuing to flourish and strengthen the market. PropTech has changed the industry, optimising the way we buy, sell, research, and manage properties. In addition, the innovative ability to streamline searches, transitions, and property management is bolstering the already fast-paced real estate market. The rise of the digital world is bringing more convenience and efficiency to buyers and sellers here in Mallorca and around the world.
Emerging Investment Hotspots
Palma and the island as a whole continue to be red-hot in terms of real estate, but some areas are becoming more lucrative in terms of investment. Around Palma, the traditional villages of Esporles, Establiments, and Puigpunyent are becoming increasingly attractive due to their quiet surroundings and proximity to the city and its airport. In the Calvià region, Cala Vinyes and Sol de Mallorca are appealing to buyers who wish to live in Mallorca, close to the sea, throughout the year. The opening of Richard Branson‘s luxury Son Bunyola hotel this summer will boost and revitalise the west‘s international profile and attract a new clientele to neighbouring villages such as Banyalbufar. In the north of the island, The Four Seasons Resort Mallorca at Formentor will surely attract affluent international clientele to the region. And in the heart of the island, the real estate landscape is changing, thanks to sophisticated project developments around Son Gual and in the wine regions of Sencelles and Biniali. And finally, in Llucmajor, in the south of the island, townhouses are becoming increasingly sought after, whether renovated properties or new buildings, for living and renting.
We hope you feel inspired and encouraged by the hottest trends and opportunities in Mallorca’s real estate market. Here at Engel & Völkers, we want to help you capitalise on these trends and make well-informed decisions to navigate and thrive in the dynamic market on our favourite Mediterranean island. For more information or advice on any of these topics, please reach out to our expert team who will guide you on your property journey.