{"id":25971810,"date":"2024-08-19T09:01:39","date_gmt":"2024-08-19T07:01:39","guid":{"rendered":"https:\/\/isla-travel.de\/?p=25971810"},"modified":"2024-08-19T13:02:13","modified_gmt":"2024-08-19T11:02:13","slug":"luxury-boom-on-mallorca-over-a-third-of-new-builds-cost-more-than-one-million-euros","status":"publish","type":"post","link":"https:\/\/isla-travel.de\/en\/mallorca-magazin\/luxusboom-auf-mallorca-ueber-ein-drittel-der-neubauten-kostet-mehr-als-eine-million-euro\/","title":{"rendered":"Luxury boom on Mallorca: over a third of new builds cost more than one million euros"},"content":{"rendered":"

The real estate market in Mallorca is experiencing a strong increase in the luxury segment, according to a recent study by the consulting firm CBRE<\/strong> shows. More than a third of New buildings on the island<\/strong> now costs over one million euros. This development reflects the increasing demand for high-priced real estate<\/strong>which is being fueled primarily by foreign buyers.<\/p>\n\n\n\n

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Denchik -Unsplash<\/figcaption><\/figure>\n\n\n\n

Prices in the luxury segment: a significant increase<\/h2>\n\n\n\n

The study makes it clear that 20 percent<\/strong> of the new projects in Mallorca cost between one and three million euros, while 15 percent<\/strong> of the new buildings even reached more than three million euros. Especially after the coronavirus pandemic, the Luxury area on Mallorca<\/strong> The market has developed enormously, making it almost impossible for domestic buyers to keep up at this level.<\/p>\n\n\n\n

Even more expensive in Ibiza<\/h2>\n\n\n\n

On the neighboring island Ibiza<\/strong> the situation is even more tense. There the prices for 37 percent of new buildings<\/strong> over one million euros, whereby 16 percent<\/strong> cost between one and three million euros and 21 percent<\/strong> of properties cost more than three million euros. These figures underline the fact that property prices on the Balearic Islands have become unattainable for many locals.<\/p>\n\n\n\n

Exorbitant prices per square meter in the luxury sector<\/h2>\n\n\n\n

Currently there are 74 projects<\/strong> in the luxury sector in the Balearic Islands, which on average 10,800 euros per square meter<\/strong> costs. In some cases, even the mark of 30,000 euros per square meter<\/strong> exceeded. These figures show how strong the demand for luxury properties in Mallorca and Ibiza is.<\/p>\n\n\n\n

Foreign buyers drive the market<\/h2>\n\n\n\n

According to Luis Alfonso de Le\u00f3n, President of the Association of Draughtsmen in Mallorca, this development is mainly due to the Strong demand from abroad<\/strong> fueled. It is often easier to find buyers for more expensive properties than for cheaper ones. Accordingly, the number of Real estate transactions in the luxury segment<\/strong> significantly higher in the Balearic Islands than in the rest of Spain.<\/p>\n\n\n\n

Development of transactions in the luxury segment<\/h2>\n\n\n\n

The proportion of sales of new builds and existing properties with a value of over one million euros rose from 2.6 percent in 2014<\/strong> on 6.2 percent in 2022<\/strong>. Despite a slight decline to 5.3 percent<\/strong> in 2023, this figure remains well above the Spanish average, where only around one percent of transactions are in this price segment.<\/p>\n\n\n\n

High land prices and limited building land<\/h2>\n\n\n\n

One of the main reasons for the high property prices in Mallorca are the high land prices<\/strong> and the limited building land. These factors continue to drive up prices, meaning that many locals can no longer afford to buy property on their home island. Although the new Balearic government has announced measures to promote the creation of more affordable housing, progress has been slow so far.<\/p>\n\n\n\n

Conclusion: the luxury market continues to boom<\/h2>\n\n\n\n

The market for Luxury real estate<\/strong> on Mallorca and Ibiza shows no signs of cooling down. Demand remains high, especially from foreign buyers who are willing to pay high sums for exclusive properties. This continues to drive up prices and makes it almost impossible for many locals to afford real estate on the Balearic Islands. Future developments will depend heavily on how successfully the government's measures to promote affordable housing are implemented.<\/p>\n\n\n\n

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