The Move in the Mallorca Market

During what was a past year of ever-changing uncertainty every industry has had to adapt and evolve, including luxury developments. Abode2 sat down with Jaime Rios, Director of AEDAS Homes’ Mallorca office, to discuss the change in the market demand he has seen in Mallorca.

The latest Property Registrars report indicates that though there is a natural slowing since the pandemic, the market on Mallorca is extremely resilient and reliable. Has the same been the case for AEDAS Homes?

Obviously the situation that has unfolded across the globe, both from an economic as well as a healthcare standpoint, has generated a certain coolness towards investing in a second home destined for holiday use.  In Mallorca, for example, at AEDAS Homes we have found that there has been a product segment where we have noticed a certain slowdown, specifically in very high-end developments. Customers are still very much interested, but because they cannot visit us, or see the development with their own eyes, this can lead to postponing a purchase.

In contrast, homes that are destined to be primary residence have continued to sell at a healthy pace, although admittedly in Mallorca there is not a very large supply of this type of products (ranging from €250,000 and €450,000) that also meets the expectations and preferences of today’s consumers. At AEDAS Homes we do have this type of more affordable product in two of our developments in Palma: Llull and Vasco de Gama. Mallorca and the other Balearic Islands are a unique place, offer a unique lifestyle.  These islands are renowned not only for their exceptional climate, but also for their infrastructure and safety, and it is these strengths that will once again make Mallorca a desired destination “only for the few”.

Mourelle ,3-bedroom townhouse from €995,000, https://aedashomes-international.com/baleares/mourelle/

People are predicting that with Mallorca experiencing years of significant price increases, now may be a rare opportunity to snare a beautiful property for a more reasonable price. What are your thoughts?

Despite the difficulties brought on by the pandemic, prices in Mallorca have not dropped this year. This is a function of the very limited amount of land available to develop for new-build homes on the island. You can view this as either our greatest handicap or our greatest advantage, but it is the reality of island living and being limited in terms of geography – this insularity is what makes our product scarce and drives up (or maintains) prices levels.

New Folies, 3-bedroom home from €2,015,000, https://www.aedashomes.com/en/new-houses-for-sale-port-d-andratx-new-folies

Reports have shown that the sale of stand-alone houses has been reaching record highs, while apartments were at a minimum. Have you seen this? If so, why do you think this might be?

That's right, luxury single-family homes have not dropped in price – in fact, quite the opposite. This segment of the market, which offers a very high-end product, with exceptional amenities in top tier locations, has suffered the consequences of the covid-induced recession less than other segments.

In recent years, detached or even semi-detached homes, located in a community context, have experienced strong demand. It’s partly because this typology allows maintenance and services to be offered directly by the residents’ community, while still allowing owners to enjoy the experience of a single-family home. In Mallorca we have three single-family developments that offer this lifestyle: Mourelle, in Calviá; New Folies in Puerto de Andratx, and most recently, Eneida in Llucmajor.

In multi-family apartment buildings, how successful sales are depends on the location and amenities, but not only on the home itself, but also the community/urbanisation it belongs to.

In general, AEDAS Homes’ Mallorca branch’s business volumes for the 2020 financial year have been very positive, meaning that we have met our annual targets, despite the adverse economic circumstances.

Mourell,3-bedroom townhouse from €995,000, https://aedashomes-international.com/baleares/mourelle/

A trend that we are seeing in Spain is that new build sales have stood up more than resale home/second-hand homes. Has this been the case for AEDAS’ market in Mallorca?

Yes, Mallorca is no exception. New-build homes on the island are definitely more resilient. In our case, new-build homes from AEDAS come equipped with air conditioning and aeration / purification systems that make our buildings much more efficient and make our homes healthier environments. Additionality, our new-build homes are designed with far more sustainable materials than those built in the past, they are more respectful of the environment, efficient in terms of energy consumption, and have better orientations on their plots, which facilitates better natural ventilation. When buyers are faced with the decision to choose between new-build and second-home, it’s clear that a new-build home offers them clear advantages, and that’s why this segment of the market has been resilient during the pandemic.

Eneida, 4-bedroom home from €615,000, https://www.aedashomes.com/casas-en-venta-obra-nueva-eneida-llucmajor

Have you noticed the profile of overseas buyer changing over the last year?

The preferences of foreign buyers are increasingly focused on having services, such as surveillance, cleaning, etc., being located in fully consolidated environments, and if possible, within relative proximity to urban environments and everything they offer, for example, Palma city, Calviá, Andratx, - this makes air and port connections much more seamless.

At the product level, there is a greater preference for homes with gardens and large terraces.

For more information on the featured properties, visit:

New Folies - https://www.aedashomes.com/en/new-houses-for-sale-port-d-andratx-new-folies

Mourelle - https://aedashomes-international.com/baleares/mourelle/

Eneida - https://www.aedashomes.com/casas-en-venta-obra-nueva-eneida-llucmajor