Do property prices in Mallorca have further to fall?

A brief update on the market here. Inevitably we are frequently asked "what's the market doing?", "do property prices in Mallorca have further to fall?".

No doubt the global financial crisis is not over yet. And it is important to remind ourselves that it is a global crisis and that it is not confined to just the Euozone. Having said this Spain is very much at the forefront with many predicting it will soon require a sovereign bailout.

The main reason Spain is in quite such a precarious position is the collapse of its property sector. New homes are not selling and construction has all but stopped. Resales have also slowed dramatically.

The knock-on effect into other areas of commerce and industry have been equally dramatic, putting the Spanish banks, as the main lenders to the property sector, in a precarious position.

One inevitable result of this is that Mallorca property prices have fallen, anywhere from 20% to 30% or more depending on which report you are reading, since the outset of the crisis.

This and the pressure on some owners to sell quickly have created property buying opportunities that have just about kept the market moving, the prizes going to the more entrepreneurial buyers who see this as a good opportunity.

Ironically, the market has also been supported to some extent buy wealthy people looking for a safe investment and seeing Mallorca as a quality location that offers just this - provided they buy at a competitive level, which they invariably do.

This summer however there has been an apparent change in that people are once again buying simply to own a holiday home in Mallorca. Of course, they are concerned they will have a solid investment and, therefore, that they buy sensibly. But they are buying a second home and the motivation for this is primarily to improve their lifestyle.

This is not a large scale change. In part it is driven by the seasonal factor - the summer months being a time when lifestyle purchasers combine property hunting with annual holidays. But there is a definite increase in property buying activity compared to the same periods in recent years.

Why this is happening in the face of an intensifying Euro crisis is not clear. Our view is that people are coming to accept crisis as the new "norm", at least for the next few years. They can see the continual bungling of Eurocrat politicians is having little effect and simply want to get on with their lives.

Furthermore, Mallorca is still clearly a highly desirable place in which to own property. Something we agree with provided you are buying in a location that is well established with international buyers.

Going back to the original question, are prices likely to fall further? Our answer is:

Overall, yes. The domestic (non international) and lower price package tour resorts face structural issues that are likely to take years to resolve.

However, the mid and upper price levels within the international sector, specifically in the prime locations in Mallorca, are different. While many properties are still relatively overpriced at pre-recession levels, other properties for sale have been adjusted to sensible prices and new listings are tending to come to market at more realistic asking amounts.

This is the beginning of the process of prices leveling out. In any property market anywhere in the world, desirable properties in the best locations will fall by less overall and will find their price floor earlier than less desirable properties.

The reason is simple - supply and demand. The stock of truly high quality properties in Mallorca is relatively small. Coupled with this, the underlying demand is strong, an equation which supports prices.

This is not to say the market for prime properties in Mallorca has turned against the buyer. The "leveling out" process will take years and within this there are good opportunities for investors and lifestyle purchasers alike.

The key thing, as in any property market, is to understand the market and buy well, something we at Mallorca Property Partners can help with.

To read more about how we can help your Mallorca property search, see our website mallorcapropertypartners.com.

MPP Mallorca Property Newsletter 12th December 2010

Here is our latest update on some of the more interesting property opportunities currently available in Mallorca. This selection includes two country houses in the Soller Valley on the NW coast; the olivar in Fornalutx in particular is exceptional if you are looking for a peaceful but accessible retreat with stunning views and real character.

The townhouse in Cala Murada is a great opportunity for someone looking for a holiday home / rental investment right on the sea front. The traditional townhouses in Andratx and Puigpunyent could be either permanent homes or holiday homes for someone looking for a more "authentic" Mallorcan environment. I have also included a selection of sea view apartments on the southwest coast, all priced between 300,000 and 400,000 Euros.



Country house with pool and mountain views, Soller

Country houses with pools are not so common in Soller, particularly at this price level. This one has room for improvement but is structurally in good order and has a good location with mountain views. Competitively priced at 660,000 Euros. see details



Idyllic 3 bedroom "olivar" for sale, Fornalutx, Near Soller

Olivars are old mountainside cottages, originally used by farmers tending the olive terraces. There are few of this size or quality. Asking price: 675,000 Euros. see details



Price reduction: 3-bed townhouse for sale in sea front community, Cala Murada - exceptionally low price

An ideal holiday home in a sea front development in SE Mallorca. Private garden and sea views from the upper floor. Reduced from an original 420,000 Euros to 315,000 in order to sell quickly. see details



Price reduction: recently built traditionally styled townhouse for sale, Puigpunyent, Mallorca

These townhouses are ideal as permanent homes or for people looking for a lock-up-and-leave holiday home in an authentic Mallorca small town within easy reach of Palma. An excellent opportunity now priced at 320,000 Euros. see details



Price reduction: spacious 3 bedroom townhouse in Andratx

A spacious townhouse property for sale in Andratx, a prime location on the SW coast. Reduced from 580,000 to 499,000 Euros. see details



2 bed sea view apartment for sale, Son Caliu - direct access to the sea

Apartment in a sea front community in Son Caliu on the SW Coast. Needs modernising and this is taken into account in the asking price. An interesting holiday home / investment opportunity. Asking price: 335,000 Euros. see details



Price reduction: 2-bed sea view apartment, Santa Ponsa

This apartment has 3 beds and a large sea view roof terrace for sunbathing and BBQs. Great potential for a family holiday home. Price reduced to sell, from 425,000 to 368,000 Euros. see details



Frontline 3-bed apartment for sale, Santa Ponsa

Front line sea view apartment for sale in Santa Ponsa. Low asking price for a 3-bed frontline property: 395,000 Euros. see details



2-bed ground floor sea view apartment for sale, Puerto Andratx

It is unusual to get a ground floor apartment with such good sea views. This one has 2 beds, is in a recently built quality development and is reasonably priced for Puerto Andratx. Asking price: 395,000 Euros. see details


The next update will be in four weeks time after the Christmas break. I will still be here though so please get in touch if you have questions on these properties or are planning to visit for viewings. Have a good weekend and, if I don't hear before, a very Happy Christmas too.

Kind regards
Mallorca Property Partners

Mallorca property newsletter: 24th October 2010

Here is our latest update on some of the more interesting property opportunities currently available in Mallorca. This selection includes two country houses in the Soller Valley on the NW coast; the olivar in Fornalutx in particular is exceptional if you are looking for a peaceful but accessible retreat with stunning views and real character.

The townhouse in Cala Murada is a great opportunity for someone looking for a holiday home / rental investment right on the sea front. The traditional townhouses in Andratx and Puigpunyent could be either permanent homes or holiday homes for someone looking for a more "authentic" Mallorcan environment. I have also included a selection of sea view apartments on the southwest coast, all priced between 300,000 and 400,000 Euros.



Country house with pool and mountain views, Soller

Country houses with pools are not so common in Soller, particularly at this price level. This one has room for improvement but is structurally in good order and has a good location with mountain views. Competitively priced at 660,000 Euros. see details



Idyllic 3 bedroom "olivar" for sale, Fornalutx, Near Soller

Olivars are old mountainside cottages, originally used by farmers tending the olive terraces. There are few of this size or quality. Asking price: 675,000 Euros. see details

Price reduction: 3-bed townhouse for sale in sea front community, Cala Murada - exceptionally low price

An ideal holiday home in a sea front development in SE Mallorca. Private garden and sea views from the upper floor. Reduced from an original 420,000 Euros to 315,000 in order to sell quickly. see details



Price reduction: recently built traditionally styled townhouse for sale, Puigpunyent, Mallorca

These townhouses are ideal as permanent homes or for people looking for a lock-up-and-leave holiday home in an authentic Mallorca small town within easy reach of Palma. An excellent opportunity now priced at 320,000 Euros

see details



Price reduction: spacious 3 bedroom townhouse in Andratx

A spacious townhouse property for sale in Andratx, a prime location on the SW coast. Reduced from 580,000 to 499,000 Euros. see details



2 bed sea view apartment for sale, Son Caliu - direct access to the sea

Apartment in a sea front community in Son Caliu on the SW Coast. Needs modernising and this is taken into account in the asking price. An interesting holiday home / investment opportunity. Asking price: 335,000 Euros. see details



Price reduction: 2-bed sea view apartment, Santa Ponsa

This apartment has 3 beds and a large sea view roof terrace for sunbathing and BBQs. Great potential for a family holiday home. Price reduced to sell, from 425,000 to 368,000 Euros. see details



Frontline 3-bed apartment for sale, Santa Ponsa

Front line sea view apartment for sale in Santa Ponsa. Low asking price for a 3-bed frontline property: 395,000 Euros. see details



2-bed ground floor sea view apartment for sale, Puerto Andratx

It is unusual to get a ground floor apartment with such good sea views. This one has 2 beds, is in a recently built quality development and is reasonably priced for Puerto Andratx. Asking price: 395,000 Euros. see details


The next update will be in four weeks time after the Christmas break. I will still be here though so please get in touch if you have questions on these properties or are planning to visit for viewings. Have a good weekend and, if I don't hear before, a very Happy Christmas too.

Kind regards
Mallorca Property Partners

Mallorca property newsletter: 33d October 2010

The focus this week is on some attractive price reductions. There are quite a few to report; all on good quality properties in good locations. My view is that some owners who were holding out for prices to start increasing again are now recognising this might still be a way off, so they are adjusting their prices to more competitive levels in order to sell.

I have also included a few that have not been reduced, but have come onto the market more recently at realistic and competitive price levels. The selection starts at 250,000 Euros for a 2 bed, 2 bath penthouse apartment in Puerto Pollensa and ranges to 1.3 million for a luxury contemporary country house in Pollensa.

Price reduction, 2 bed penthouse apartment, Puerto Pollensa

This is a good top floor apartment with three south-facing balconies and views to the mountains. Price reduced from 295,000 to 250,000 Euros. see details

Price reduction, 2-bed apartment, walking distance of Puerto Andratx harbour front

This penthouse apartment is situated in a well maintained residence in a quiet area a short stroll from the harbour front of Puerto Andratx. Now 295,000 Euros. see details

3-bed apartment for sale, Paguera, Southwest Mallorca - spectacular sea views

Spacious top floor apartment with a large terrace and fantastic sea views. Set in a good community with two pools; a good value-for-money proposition at an asking price of 386,000 Euros. see details

2 bed sea view apartment for sale, Puerto Portals, Southwest Mallorca - direct access to the beach

This apartment is in a prime location in Puerto Portals, close to the marina and within easy reach of the beach. Asking price: 391,000 Euros. see details

Price reduction on 2-bed sea view apartment, Puerto Andratx, Southwest Mallorca

This apartment has excellent sea views. With a significant reduction from 595,000 to 500,000 Euros, the property is now a very low price for this prime Southwest Coast location. see details

Price reduction, 2 bed sea view apartment in Puerto Andratx

This small residential complex, built in 2002, is within easy walking distance of the harbour front of Puerto Andratx, one of the most sought-after locations in Mallorca. Reduced from 575,000 to 530,000 Euros. see details

Large 5 bed country house, Crestatx, near Pollensa

Comfortable, easy-to-maintain family holiday homes tend to be over a million Euros in the Pollensa area. This one has 5 beds, a great pool and lovely garden and is priced at 960,000. see details

Substantial reduction on 4 bed country house, Pollensa

A notable reduction brings this country house property down from 1,380,000 to 980,000 Euros. A genuine bargain in a good location. see details

Luxury contemporary country house for sale, near Pollensa

This villa-style country house was built recently to a very high standard and occupies one of the best plots in S'Ubach, which is close to Pollensa Old Town. Priced to sell at 1,300,000 Euros. see details

Finally, a reminder of the property featured in our special alert last week; a recently built country house near Pollensa. This property was originally 600,000 Euros and was recently reduced to 510,000 Euros which is lower than comparable properties. Now it is 480,000 Euros and likely to sell quickly at this level. You can see the details here: Final reduction on country villa for sale, Pollensa.

Please get in touch if you would like any more information on these properties; my contact details are below. I look forward to hearing from you, have a good weekend.

Kind regards

Mallorca Property Partners

MPP newsletter 22nd August, now online

The latest Mallorca Property Partners newsletter is now online. Our newsletter is published every two weeks with the latest and most interesting buying opportunities plus insights into the market and how to go about finding and buying the best properties.

MPP newsletter 22nd August, now online

MPP Mallorca Property Newsletter 8th Aug 2010

Here is our early August update which I hope is of interest to you.

Repossessions have been receiving a lot of publicity of late. I was asked recently why we do not feature them as surely they are the best deals!

However, this is often not the case. The bulk of repossessions are neither in strong locations, nor are they they type of property for which there is a strong international demand. Whether such properties are good investments at this time is highly questionable.

Furthermore, not all the repossessions are at genuinely "good deal" prices. Where properties had originally been bought at 90, 100 or 110% loan-to-value, the banks have to "write down" (lose) a considerable percentage of the outstanding loan in order to bring the property in line with current prices. They are understandably reluctant to do this.

When a good quality repossession is on offer, in a good area at a good price, it is likely to sell very quickly. MPP works with agents appointed by the banks to sell repossessed properties, so when searching for a property on your behalf we take them into account alongside other available properties. Quite often non-repossession properties win out as the best opportunity.

This weeks selection includes several outstanding opportunities ranging from 199,500 Euros for an apartment in Palma's Santa Catalina, to 3.9 million for a country estate in Escorca in the Traumantana mountains.

Apartment in Santa Catalina, Palma, recently renovated to high standard

A great little two bed apartment in Santa Catalina, one of the best locations in Palma. Renovated to a high standard and nicely furnished. Reduced from 289,000 to 199,500 Euros to sell. Comparable properties are currently around 250,000+. see details

Penthouse apartment close to the Pinewalk, Puerto Pollensa

This 3 bed penthouse apartment is excellent value having been reduced from Euro 600,000 to 480,000. see details

3-bed traditional townhouse in Andratx Village

A traditional townhouse with plenty of space for a family or guests. Located in Andratx Village a few minutes drive from Puerto Andratx. 395,000 Euros. see details

Spacious 3-bed apartment with views over Port Adriano

A front line sea view apartment directly overlooking Port Adriano marina, one of the prime investment locations in Mallorca. 455,000 Euros. see details

3-bed villa for sale, Costa de La Calma

A 3-bed detached villa with pool, located in Costa de la Calma close to Santa Ponsa on the southwest coast. An outstanding property at this price level. 515,000 Euros. see details

Luxury 4-bed new-build villas, close to Pollensa Old Town

Two newly built villas, both 4-bed luxury properties with infinity pools, elevated positions and great views. Priced to sell at 950,000 and 1,050,000 Euros respectively. Ideal easy-maintenance luxury holiday homes and/or rental investments. see details

4 bedroom country house with mountain views, close to Pollensa Old Town

A traditional country house with mountain views and in walking distance of the old town of Pollensa in the north of Mallorca. Asking price 1,380,000 Euros. see details

13th century country estate in the mountains of Escorca, North Mallorca

One of the prime country estates in North Mallorca. A unique and historic property nestling in the Traumantana mountains and with the potential to be one of the most noteworthy homes on the island. Price 3,900,000 Euros. see details


Please get in touch if you want more information on these properties or have any questions regarding buying in Mallorca. I look forward to hearing, have a good weekend.

Kind regards

Mallorca Property Partners


To view previous issues and to sign up toour newsletter please click here: MPP newsletter archive.

Is spring bringing renewed growth to the Mallorca property market?

MPP 2nd qtr market update

After an unsettled start to the year it’s turning out to be a glorious spring in Mallorca. Is the finer weather bringing renewed growth to the island’s property market too?

The 2nd quarter 2010 Mallorca Property Partners market report is now online. The report updates on current market conditions and gives further advice on how to go about finding and securing the best property opportunities.

Click here to read the full report. Is spring bringing renewed growth to the Mallorca property market?

MPP newsletter and property update: 25th February 2010

Here is our latest update from Mallorca. It is still the quiet season but the property market is busier than it was at this time last year. While people remain sceptical that any significant economic recovery is under way, the positive in this for buyers is that there are still some good opportunities. Our advice continues to be to focus on getting a good investment and not to judge opportunities solely on the size of the “discount”. Our Feb/Mar update talks more about this and is worth a read if you have not already seen it (Mallorca property market update - Feb/Mar 2010).

It is also worth re-iterating that asking prices can be misleading. As the recession has progressed more owners have set competitive prices which means the purchaser could be getting a good deal even if the final negotiated price is not much lower. Equally, some owners are sticking by relatively high (pre-recession) asking prices and will only negotiate when a solid offer is on the table. The only way to judge where the best opportunities lie is to visit and get actively into the market. Our role is to help you do this and make it as productive as possible for you.

New listings

Here are a few new opportunities recently posted on our blog.

* Country villa, Pollensa. Recently built country house in a particularly good position in S’Ubach, a short drive from Pollensa Old Town. It has been reduced from 600,000 to 560,000 Euros.

* Garden apartment, Nova Santa Ponsa. This apartment is located in a prime community close to Port Adriano on the southwest coast. Euro 469,000.

* Country house, S’Arraco Andratx. Country house currently undergoing refurbishment. S’Arraco is a village just outside of Andratx, one of the most sought-after locations. Priced at 990,000 Euros.

* 4 bedroom villa, Puerto Pollensa. Villa is for sale in Gotmar, Puerto Pollensa. The town is within easy reach as is the beach. Villas of this specification are usually over 1m Euros. Price: 975,000 Euros.

* New build 2 bed apartments, Cala d’Or. These are the final units for sale and have been reduced to Euro 209,000. The properties have a recent bank valuation of 275,000.

This article might also be useful - Are bank valuations relevant to the real value of properties in Mallorca?

I hope this is of interest. If you are coming out to look at properties get in touch and we will start looking into the most interesting options for you.

Kind regards,

Mallorca Property Partners

Mallorca Property Partners newsletter : 11th February 2010

Here is the latest on the Mallorca property market. The buying environment continues to evolve and if you are thinking of buying it is worth reading our latest market report. This one focuses on the wisdom of seeking out opportunities with “prime” properties rather than being tempted by those showing the biggest reductions.

≈ Mallorca property market update - Feb/Mar 2010


And here are a few properties that might fit the bill in this respect.

≈ CAD1932: garden apartment property for sale in Cala door, Southeast Mallorca

Cala d’Or has been hit more badly by the recession than some other coastal areas but still sits as one of the more established locations and popular holiday resorts. Now is a good time to pick up a good 2 or 3 bed holiday apartment / rental investment. This one stands out and has been reduced from 265,000 to 230,000 Euros.

≈ 3/4 bedroom apartment close to Port Adriano, Nova Santa Ponsa

Front-line communities in Nova Santa Ponsa and close to Port Adriano are certainly in the prime category. This one is towards the upper end of the market. Price: 1,000,000 Euros.

≈ 2 bed sea view apartment in Nova Santa Ponsa

And this one is more affordable at 450,000 Euros

≈ Ground floor apartment for sale, 2 bedrooms, harbour views, Puerto Andratx

A ground floor apartment which, unusually, has views over the harbour, the most desirable feature of apartments in Puerto Andratx. Price 750,000 Euros.

That’s all for this update; the next one will be in a couple of weeks and there are more properties being added daily to the blog. You can either bookmark the link below or subscribe to an RSS feed to receive them more regularly. If you are planning on a viewing visit get in touch and we’ll look into a selection specifically matching your requirements.

Until next time, kind regards,

Mallorca Property Partners

POL5470: Country house property for sale, Pollensa, Mallorca

This country house property is for sale in a prime location in Pollensa in the North of Mallorca. The property is a two story stone house typical of such properties in the area. On the ground floor there is a county-style kitchen and separate laundry, large comfortable lounge with open fireplace and dining room opening to a large covered terrace overlooking the gardens.

Ref: POL5470
Location: Pollensa, North Mallorca
Type of property: Country house
Bedrooms: 5
Bathrooms: 5
Plot Size: 23.000
Constructed: 400
Price: 4.000.000 Euros

For further information please see : Beautiful country house property for sale in Mallorca – prime Pollensa location

October 2009 Mallorca property market update – where, when and how to buy.

“The latest property market statistics and a depressed Spanish economy continue to cast a gloom over the Spanish property market. Mallorca is escaping this to some degree but prices are still under pressure even in this prime location. A good time to buy? … yes, if you are smart and buy the right property in the right place!”

The latest Mallorca property Partners update is online. This month’s update tries to help with some practical “when, what, where and how” guidelines to investing well and getting the right property. You can read the full article here: October 2009 Mallorca property market update – where, when and how to buy.