New research has shown that five of the top 10 most expensive Spanish property hotspots are located in the Balearic Islands.
In addition, Palma has also been revealed as one of the three major cities in Spain where prices increased the most.
Analysis by Tinsa, a specialist property valuation consultancy, put Calvia second in Spain for property values at €2,520 per square metre behind only Sitges at €2,694 per square metre. Following on behind in the top 10 locations in Spain come Andratx (€2,422/m²), Alcudia (€2,410/m²), Soller (€1,984/m²) and Santanyi (€1,972/m²).
Alejandra Vanoli, managing director of Mallorca Sotheby’s International Realty, said: “Believe it or not there are prices per square metre in these locations that far exceed Tinsa’s estimations. It’s not unheard of to reach as high as 30,000 euros per square metre for the most desirable Port Andratx home.
“Demand is strong from some of the wealthiest individuals and families in Europe, the US and beyond. Most need no finance and are prepared to pay whatever it takes for a prime property in a prime sea-view location- whether that’s chichi Puerto Portals in Calvia or coastal seclusion in the UNESCO-protected Tramuntana. With high-end Mallorca, money really is no object.”
Further examination of the findings from Tinsa suggest that the Balearics weathered the storm of the Spanish property market price ‘correction’ more positively than the rest of the country. While the average drop in prices across the whole country stands at 42%, in the Balearic Islands most regions registered less than a 35% decline. Particularly strong performers in this respect were Alcudia (-15%), Calvia and Soller (both -26%).
Palma was also highlighted by Tinsa as property transactions increased by more than 50% in 2014, higher even than the mass-volume markets of Torremolinos and Benalmadena. It said “luxury bricks and mortar” is seen as one of the main drivers behind the strength of the Balearic property market.