Balearic Property Prices Edge Closer to London

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Luxury real estate agent, Balearics Sotheby's International Realty, has observed property prices in Mallorca and Ibiza nudging London levels.

6250 Villa Talamanca 2point85m euros Ibiza Sothebys International Realty

Prices could also rise by up to 50% - then London’s “golden postcodes” will really have some competition on their hands.

The average price per square metre of property sold by Mallorca and Ibiza Sotheby’s International Realty this year is 9,000 euros – a cool 7,600 pounds. This puts the Spanish islands into the same price bracket as certain parts of England’s capital.

According to September research from Savills, prime ‘second hand’ property in southwest London is valued between 510 and 990 pounds per square foot (5,490 and 10,656 pounds per square metre) and for the east of the City between 500 and 790 pounds per square foot (5,382 and 8,503 pounds per square metre). High prices in London are being blamed on strong overseas demand – it’s no different in the Balearics.

Daniel Chavarria Waschke, Managing Director of Balearics Sotheby’s International Realty, says, “Due to ease of access from most northern European cities, more than 80% of our buyers are not Spanish. Looking at the year to date, half of all our enquiries are from Brits and Germans, 34% and 21% respectively for Mallorca and 40% and 10% for Ibiza, and they are placing high value on location alongside quality of construction, a considered layout and a superior level of decor. Tastes are more refined and budgets seemingly limitless, but supply is relatively low – hence the surprisingly high property values we’re now experiencing on the Islands.”

“Whilst the assumption may be that it’s Russian or Middle Eastern buyers who have been spending an average of 9,000 euros a square metre on property with us this year, that’s not the case,” continues Daniel, “In fact, two thirds of our purchasers have been British, with German, Swedish and the occasional Far Eastern buyer making up the minority third. Brits certainly feature very strongly in 2013. Whether the balance will switch further afield to China, Hong Kong and Russia when Spain’s new Golden Visa legislation takes affect remains to be seen.”

Balearics Sotheby’s International Realty has also observed that all homes they’ve sold in 2013 have been under construction, recently completed or freshly refurbished. Those that require modernisation have tended to ‘stick’ on the market a little longer. The effects of the ‘crisis’ are no longer being felt in the Balearic property market, people are no longer hesitating or negotiating, and the trend is for bigger, better and more expensive villas.

To adapt to this trend, the high-end real estate agent has raised the minimum price of apartments listed within its portfolio to one million euros and villas to two million euros. The aim is to match supply to demand and accommodate the tastes and preferences of its exclusive clientele. Indeed, Balearics Sotheby’s International Realty now lists 22 properties priced in excess of ten million euros on its website, with a further ten marketed in a more discreet manner. This number is set to double in the next three years and prices could also rise by up to 50% - then London’s “golden postcodes” will really have some competition on their hands.    

Contact Mallorca Sotheby’s International Realty on phone: (+34) 971 674 807, email mallorca(at)mallorcasir(dot)com or visit http://www.mallorca-sothebysrealty.com. Contact Ibiza Sotheby’s International Realty on phone: (+34) 971 310 799, email ibiza(at)ibizasir(dot)com or visit http://www.ibiza-sothebysrealty.com.

On the Market in Mallorca:
Ref 5798, Villa, Port Andratx

Set right on the edge of the Mediterranean, this luxurious elegant villa is in the coveted La Mola area of Port Andratx with panoramic views of the marina, island of Dragonera and the open sea. The main home has a large living and dining area, modern ‘Boffi’ kitchen, a wine cellar and three en suite bedrooms. A further two separate en suite bedrooms are ideal for guests or staff. Outside the plot is flat, beautifully landscaped and offers absolute privacy. Sunset views from the many terraces and heated infinity pool are incredible.

Six bedrooms, Six bathrooms
Built area 600m², Plot size 2,200m²
Price 15 million euros (approx 12.6 million pounds)
Contact Mallorca Sotheby’s International Realty on phone: (+34) 971 674 807, email mallorca(at)mallorcasir(dot)com or visit http://www.mallorca-sothebysrealty.com.

On the Market in Ibiza:
Ref 6250, Villa, Talamanca

This newly built modern villa is set in the exclusive area of Cap Martinet, a few minutes from Talamanca beach and the same from chic Marina Botafoch with its designer shops, restaurants and the famous Cappuccino Grand Café, Lio club-cabaret-restaurant and Blue Marlin Marina. Comprising a grand living-dining area, large kitchen with laundry and storage room, home cinema and four en suite bedrooms, the master with a dressing room, hammam and teak terrace, the home is full of charm and has gorgeous sea views. Outside, the infinity swimming pool is surrounded by teak decking and lush vegetation – the perfect spot for admiring the Mediterranean.    

Four bedrooms, Four bathrooms
Built area 500m², Plot size 1,100m²
Price 2.85 million euros (approx 2.4 million pounds)
Contact Ibiza Sotheby’s International Realty on phone: (+34) 971 310 799, email ibiza(at)ibizasir(dot)com or visit http://www.ibiza-sothebysrealty.com.

For further press information or photography please contact Sarah Drane on sarah(at)purplecakefactory(dot)com or call 00 34 607 564 726.

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