Menorca, Spain (PRWEB) April 25, 2009
Menorca, the second largest of the Balearic Islands, has long enjoyed a reputation of providing a tranquil and exclusive holiday residence location. Prices here have boomed in the past five years and in spite of the global financial crisis affecting property markets worldwide, Menorca's second home residential market is holding steady and looks set to enjoy further growth over the next few years.
In 2009 Engel & Völkers re-launched its presence in Menorca with the opening of its office in the island's capital of Mahón. The potential of Menorca's second home residential market can not be underestimated as the island remains relatively under-developed with an authentic atmosphere. It is widely regarded as the premier place to own a holiday home by owners who enjoy the natural beauty of the island and a quieter pace of life.
Prospective clients perceive Menorca as a premier location with a relaxed atmosphere and good infrastructure. Furthermore, new development is strictly regulated by local government to maintain the island's natural beauty and sustain its long term growth. In March of this year the Spanish Airports Authority, AENA, announced substantial million euro investment to further extend the island's airport which has already broken Easter records this year with an increase of 19% in passenger movements.
The island is also easily accessible via ferry from the Mainland which is why is has long been a popular choice of discerning clientele from the Spanish Mainland.
Says Christian Czarnetzki, Engel & Völkers Licence Partner for Menorca:
"The island's boom in property prices started to slow down at the beginning of 2008 and prices have now adjusted by an average of 15% over the last 12 months from their peak of 2006/7. Our re launch on the island at this time underlines our confidence in the market here, as Menorca represents an exclusive bolthole in the Mediterranean's second home residential market and is widely regarded as a secure, safe, long term investment for potential clients."
Currently, demand for Menorca property is focused on villas, apartments and town-houses with an average cost of €1.6 million plus for Menorca villas with a view, €400,000 for town-houses and approximately €335,000 for Menorca apartments in the best locations with views. Coastal areas are the most requested, especially in the south east with easy access to the island's capital of Mahón together with the residential areas around the other major port of Ciutadella.
Inland prices are generally lower and, because you are never far from the coast on the island, such areas are attractive for prospective buyers. In addition, the north of Menorca is still less developed than the south and could be an interesting area for secluded country fincas.
Over the past year there has been increased demand for rental property and this can provide buyers with an excellent way of earning a steady return of between 3% - 5% (depending on facilities and location) on their investment.
The main buyers here are Spanish (55%) followed by British (20%), German (10%) with increased interest from Swiss, Irish and Italians. Over 50% of buyers are aged 40-50 and around 30% are 50 plus. Most buyers are looking for a holiday home.
General Background to Menorca
Menorca is much smaller than the capital island of Mallorca, with 216 kilometres of coastline featuring over 100 beautiful bays and some wonderful beaches. This is the second largest island of the Balearics and only a half hour plane ride from Mainland Spain which is why it has always been popular as a holiday hideaway for the Spanish.
In 1993 UNESCO declared the whole island a Biosphere Reserve due to the island's historical and environmental importance in the Mediterranean. There are some really remarkable archaeological sites and settlements called "Talaiots" from pre historic times. Although a popular island for tourists the local government has taken great care to develop its tourism industry in a sustainable way which means that many first time visitors are pleasantly surprised that tourism has not spoilt the island.
About Engel & Völkers Menorca
Engel & Völkers are professional real estate experts in this region where the company started on the neighbouring island of Mallorca 10 years ago. The company's success in the quality second home market stems from its extensive international network of 400 offices in 37 countries on five continents. This network is actively cross-selling opportunities within the Group ensuring that even a small office in Mahón, Menorca can draw on client leads and contacts from all over Europe and beyond.
The new Engel & Völkers office offers a range of property on the island from seafront apartments to luxury villas and countryside fincas. Currently they offer a selection of just over 75 properties and prices vary, depending on property type and location, from just over €200,000 to €3.5 million plus.
For additional information about Engel & Völkers in Menorca and the Spanish Balearic Islands, contact Sandra Sofio or visit the website http://www.menorcaestates.com
Marketing / PR Director
ENGEL & VÖLKERS, North of Mallorca & Menorca
C/Juan XXIII 11, 07470 Puerto Pollensa, Mallorca, Baleares, Spain
Phone: +34 971 86 84 00
Fax: +34 971 86 84 01
Mobile: +34 619 087 815