Luxury property in Mallorca

The type of pool can make a big difference to the overall value. | Albert Bravo Gil

Andrew EdePalma12/03/2024 09:00
TW
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A study of the luxury holiday real estate market in Mallorca by Germany's Steinbeis-Transfer-Institut points to a 78% price increase in this property segment between 2015 and 2023. The average price last year stood at 10,900 euros per square metre.

A feature that has been pushing prices up in particular is a luxury-style pool. This adds up to 30% to the value.

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Timo Weibel, academic director of the institute's Center for Real Estate Studies, points out that prices moderated "a little" last year after the explosion of the previous two years. However, this doesn't mean that there will be a drop in prices. "Anyone expecting a significant drop in prices, as in Germany, will be disappointed."

Professor Marco Wölfle, director of the study, says that over the past year Mallorca strengthened its position as "one of the most sought-after holiday destinations and real estate locations in Europe." He highlights the relationship between high tourism and real estate demand, which "remains intact".