Mallorca's real estate market is a curiosity thanks to its demand-supply-price index, which is difficult to understand. However, the purchase should almost always be a safe investment.
First things first: prices for residential real estate - no matter where in the world - generally only go in one direction: upwards. Southern European vacation and second home destinations such as the Balearic Islands are no exception.Mallorca has hardly lost any of its attractiveness for real estate investors despite continuing mass tourism, rising prices, the tourist tax on overnight stays, anti-holidaymaker political campaigns, stricter environmental regulations, a slow public transport network and the associated traffic problems, as well as a continuing lack of quality in the area of service. Despite all the prophecies of doom and the negative reports in the German-language media that recur every year.
Of course, one wonders why this is the case. The answer is well known. Hardly any other holiday destination in Europe combines as many advantages as Mallorca. Flying from Hamburg to Palma for 80 euros? Including return flight? Why not! Thanks to countless flight connections to all major German cities and despite constant changes to flight providers, even such low ticket prices can still be booked. The island is accessible all year round - although somewhat more limited in the winter months. And at relatively low prices.Terror attacks, crime, natural disasters or even political unrest? Not reported! Aside from traffic accidents, clawing, jellyfish plagues or autumn downpours, the island has a consistently safe image. So safe, in fact, that even a stray, sick blue shark a few years ago had to be stylized in the media as a bloodthirsty threat.
In addition, there is an infrastructure designed for German-speaking vacationers and second home owners that is unparalleled worldwide. There is hardly a region outside the borders of Germany, Austria and Switzerland where you could feel more at home than on Mallorca. In addition to various retail chains (Lidl, Müller, Aldi, Bauhaus, Tedi, Mediamarkt, etc.), the island is teeming with local German-speaking craftsmen, interior decorators, lawyers, architects, estate agents and other service providers. Or to put it another way: German-speaking visitors who don't know how to communicate on the island due to a lack of or poor knowledge of Spanish will probably also have a problem in their home country.
But back to the real estate market. It also ticks differently than in other parts of Europe.
There are two reasons for this: despite increasing convergence in recent years, the island still distinguishes between the local market and the vacation apartment market, which is focused on foreigners. Or to put it another way: foreign real estate investors attach particular importance to state-of-the-art building technology and equipment as well as exclusive locations, preferably close to the sea. Motto: In many cases, the price only plays a secondary role. Local normal earners, on the other hand - and this is certainly no different on Sylt, in Vienna, Zurich or in Munich - are looking for affordable accommodation with good infrastructural connections.
Be that as it may. Anyone who decides to buy a vacation home or second home on Mallorca will be on the safe side in the future. Due to its geographical limitations, the supply of residential properties on the island will become scarcer in the coming decades, even if demand decreases slightly or stagnates. In other words: the value of a property - unless you have paid a completely overpriced price for it - should continue to point in only one direction: Upwards!
