Else Beekman
Mallorca has become a prime target for American luxury home buyers, according to a report by Mansion Global. The island’s appeal includes its natural beauty, favourable climate, and attractive property prices compared to the US. In 2023, Americans accounted for nearly 12% of luxury property purchases on the island.
This was highlighted by real estate agent Engel & Völkers Baleares in Xataka.com. The surge in interest from American buyers is not entirely new, but recent statistics highlight a significant trend. Mansion Global’s report indicates that US buyers are becoming a major force in Mallorca’s luxury real estate market. Florian Hofer, director general of Engel & Völkers Balearics, noted that American buyers have established a growing presence.
Impact on property prices
This increased demand has driven property prices up significantly. In Palma de Mallorca, property prices rose by 9.5% in the past year. The average price for luxury homes sold by Engel & Völkers in 2023 was €1.88 million. In high-end areas like Son Vida, prices for luxury villas can reach up to €7 million. However, this upward trend makes the local market increasingly unaffordable for residents.
Influencing factors
Several factors contribute to this trend. Mallorca’s natural beauty, excellent climate, and high quality of life make it an attractive destination. Additionally, the use of English and the large foreign population in the Balearic Islands make it easier for American buyers to integrate. Property prices in Mallorca, while rising, are still seen as favourable compared to high-demand areas in the US.
Enhanced connectivity
Improved direct flight connections have also played a significant role. The introduction of non-stop flights between Palma and Newark by United Airlines has made the island more accessible to American buyers, further driving the trend. Claus von Benz noted that these direct flights have facilitated American investment in Mallorca’s property market.
Broader implications
The growing interest from American buyers, along with rising property prices, has significant implications for the local market. While it boosts the real estate sector, it also raises concerns about affordability for local residents. The trend reflects a broader shift in the global real estate market, where high-net-worth individuals seek desirable locations worldwide.
Also read: Record-number of homes in Spain bought by Americans