Mallorca is solidifying its position as one of the world's leading markets for luxury housing. According to a study by the high-end real estate firm Berkshire Hathaway HomeServices, the island remains one of the most sought-after luxury destinations, recording steady growth despite global economic challenges.
Luxury real estate in Mallorca
Specifically, Mallorca is one of the seven locations analysed in the 2024 Global Luxury Landscape Report and the only one outside of North America. The current reference markets for the real estate company include Santa Barbara (California), Nantucket (Massachusetts), St. Louis (Missouri) and Brentwood (Tennessee) in the United States, as well as San Miguel de Allende and Santa Fe in Mexico.
Jorge Forteza, CEO of Berkshire Hathaway HomeServices Nova Mallorca, explains that "it is a market that has grown steadily over the last five years. It experienced spectacular growth in the year following the pandemic and has continued to grow, albeit at a slower pace, particularly because Mallorca is a privileged and highly sought-after location."
Above all, it is an incredibly attractive destination for international buyers, especially from Germany, the United Kingdom, Scandinavia and the United States, who are keen on second homes such as villas, flats with sea views and country estates.
According to Forteza, this demand, combined with a limited supply of properties, is driving up prices in Mallorca, making it not only an exclusive destination but also a secure investment. Among the island's most sought-after areas is Son Vida, Mallorca's most famous and luxurious neighbourhood, often referred to as the "Beverly Hills of Mallorca," where the average price is around €5 million. It is located near Palma, the capital, and several golf courses.
For those seeking more affordable options, Pollensa stands out. This town, located in the north of the island with its narrow streets and 17th- and 18th-century houses, has an average price of around €1.5 million. For those who prefer to be close to the beaches, other notable areas include Bendinat and Portals Nous.
Forteza anticipates "a relatively good year for the luxury property market in Mallorca." Although the year began with moderate activity, property enquiries have recently surged, leading to a rise in transactions. The estate agency currently has more than 1,000 properties in its portfolio, with over 200 units available on idealista alone.
However, prices vary depending on the type of property. A flat can cost around €800,000, while a luxury villa can reach up to €15 million.
Berkshire Hathaway HomeServices also highlights that the residential market in Mallorca has two faces: one centred on impressive villas, flats with sea views and spectacular properties, primarily as second homes, and another driven by a local market seeking first homes at affordable prices, as close as possible to the city centre. "Accessibility for first-time buyers and renters is an issue," Forteza stresses.
Global luxury market trends
The report highlights that the luxury real estate market remains strong, reaching new highs in both prices and sales, driven by key factors such as the lower sensitivity of its buyers to changes in interest rates. Additionally, sustainability, well-being and technology are increasingly prominent in this sector, reflecting evolving lifestyles.
These are some of the main trends observed by the real estate agency in the luxury housing sector:
A refuge from inflation
Despite global economic volatility, the luxury real estate market remains a safe investment. High-end buyers, mostly cash buyers, do not require financing, which helps stabilise this segment of the market.
Holiday market growth
Premium holiday destinations continue to experience sustained demand, attracting buyers seeking both investment opportunities and leisure. This trend persists despite a stricter regulatory environment in certain areas.
New Demands in design, well-being and technology
Wellness and sustainability
Luxury properties are increasingly incorporating wellness and sustainability features, such as saunas, gyms, spa-like bathrooms and designs using eco-friendly materials and landscaping techniques that connect residents with nature.
Advanced technology
Artificial intelligence and home automation are transforming luxury homes into smart residences that maximise comfort and energy efficiency, enhancing the functionality of modern homes and aligning with buyer expectations.
Lifestyle-focused
According to the real estate agency, the demand for luxury homes is increasingly focused on properties that are move-in ready, with locations that align with the buyer’s lifestyle. Whether it's skiing in the mountains, relaxing on the beach, proximity to a golf course, or access to hiking or biking trails in more natural areas, high-end buyers are willing to pay a premium for a prime location.
This convergence of sustainability, smart technology and well-being is redefining luxury real estate by 2024, offering buyers properties that are not only aesthetically stunning but also perfectly aligned with the needs of the modern lifestyle.
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