Market Report Luxury Real Estate 2018
Expert interview with Daniel Waschke, Managing Director of Mallorca Gold on the development of luxury real estate of over 2 million EUR in the southwest of Majorca
What are the biggest news in real estate 2018?
Daniel Waschke: Average prices have remained stable and even increased by 30 percent in Santa Ponsa. Port Andratx had the most sales over 2 million euros, and the region is the number one for first buyers.
This information comes from personal sources?
All information in our new Mallorca Gold Market Report is based on personal sources from owners and relates exclusively to luxury properties over 2 million euros in Mallorca's southwest.
The transaction value shrank by 13 percent in the southwest, why?
Even if it sounds banal: This was mainly due to the weather. Due to the unusually nice and long summer in Northern Europe, the demand for Mallorca's holiday properties was significantly lower, which also reduced sales. Sun, pleasant temperatures and the life outside are still the most important criterias for a second home in the south. Overall, the real estate sales in Mallorca only fell by an estimated 10 percent. The 13 percent relates to properties over 2 million euros in the southwest of the island.
What are the key messages from each region in the southwest?
In Son Vida, since 2015, more villas have been sold than building plots for the first time. The sale of land fell by 50 percent, due to the lack of sewerage in the old part of Son Vida, which led to a construction and renovation stop. Since 2018, there is a private investor group working with Palma's authorities to change this. Later this year, new canals will be built and therefor new villas as well in Son Vida.
In Calvía, the construction moratorium was terminated?
Licenses for the construction and modernization of luxury villas have been renewed since November. In Portals there are already new construction projects in the second line with good sea views and these will be renovated villas, which have a high demand in the luxury segment. In Old Bendinat and Golf Bendinat, where the supply of luxury villas is very limited, newly built or renovated sea view villas under 6 million euros were quickly sold out.
In Santa Ponsa and Port Adriano, average prices rose rapidly?
Average prices in Santa Ponsa and Port Adriano increased by about 30 percent in 2017, doubling in the last 4 years. In addition, Nova Santa Ponsa together with Son Vida have the smallest drop in transactions, namely 10 percent. In Cap Adriano, opposite of Port Adriano, 5 villas were sold last year for 9 million euros. The developers delivered exactly what the buyers wanted: High structural quality in combination with a professional interior design concept.
Port Andratx retains its top position?
In Port Andratx, most of the villas were sold for over 2 million euros in 2018, and the region was number 1 for new buyers. Andratx is the only municipality in the southwest that still grants building licenses, and the supply of villas above 8 million euros will therefore rise compared to the recent years. I am confident that Andratx will maintain its leading position in 2019 as well.
Where do you advise investors to buy?
In Port Andratx, e.g. Cala Marmacen (Calle Violi) and Monport. Thanks to its unspoiled nature and the huge view over the sea and the island of Dragonera, these areas are predestined for luxury villas over 15 million euros. Can Borras is also an insider tip for investors: 3 luxury villas for over 5 million euros have already been sold, 4 more villas are under construction and will be ready in 2019.