The upswing in the real estate markets in Mallorca, Ibiza and Menorca continues in 2016. After an increase over 2014 of 18% in sales of properties in the Balearic Islands last year, the Ministereo de Fomento also reported a big plus for the first quarter of 2016.
Between January and March, 3,122 real estate objects changed hands in the Balearic Islands, an increase of 17.8% compared to the previous year. This means that the number of real estate transac- tions in the first quarter is again at the pre-crisis level (2008).
The share of sales transactions per island on the overall market of the Balearic Islands also corresponds to the distribution of the properties on offer. As the Centre for Real Estate Studies found in its market study, two-thirds of the Balearic Islands’ real estate portfolio is concentrated in Mallorca, in line with the sales figures.
Mallorca, the largest of the Balearic islands, registered the highest rate of increase with 2,333 sales and, a long distance behind, follow Ibiza with 440 transactions and Menorca with 349.
Ibiza can not meet demand
“On Ibiza a lot more could be sold now”
says Natascha Sandig of Porta Ibiza. But the offers are not there and only in the high-price segment, from 3 million upwards, are more properties for sale again. For this reason, Natascha Sandig has built up an island-wide network in order to have access to all available objects, independent of real estate agencies.
Since in the island capital the holiday property market coincides with the domestic residential market, in every quarter-year most property sales are in Ibiza-town – in the first quarter of 2016 132 properties changed hands. Second place alternates each year between Santa Eulalia and San José. In the first quarter of 2016, Santa Eulalia won the race for 2nd place with 124 sales, and the municipality in the east of the island is very popular with German-speaking customers. 104 properties – making 3rd place – were sold in the municipality of San José. The region in the south-west, with 80 kms of coastline, is the community on Ibiza with the largest land area.
Menorca is catching up with real estate sales
Whilst in Mallorca about 45% of the real estate transactions take place in the municipality of the capital Palma de Mallorca, Mahón, the capital of Menorca, occupied only 2nd place with 83 sales during the first quarter of 2016. Most of the real estate transactions which took place at the beginning of the year were in the municipality of Ciutadella de Menorca. In the town in the north-west of the island, with almost 30,000 inhabitants, 123 properties changed owners from January to March corresponding to a market share of around one third.
Even if the real estate market in Menorca is around 6 times smaller than the one on Mallorca, like its bigger sister it is clearly starting to recover. With a 25% growth rate Menorca is at the top of the Balearic Islands list in the first quarter of 2016.
“If you are looking for the authentic Mallorca, you will find it in Menorca”,
smiles Yvonne Keller of Porta Menorquina. Traditionally Italian and English are the strongest groups here, but the number of German-speaking residents is growing continuously. The Swiss are also currently discovering the most cost-effective Balearic island, says Keller.