With the lifting of the travel restrictions, the breakthrough finally came. In May 2021, Porta Mallorquina registered a record number of over 700 enquiries per month, and the level in June was also significantly higher than the usual average.
Fincas, houses, and apartments. When it comes to holiday properties, Mallorca is the buyers’ most popular location.
This high demand is also reflected in the positive sales figures. As of 30.06.2021, the subsidiary company of the listed Homes & Holiday AG reported a sales volume of 81.6 million euros including existing option contracts, and so already exceeds the total volume of 2020 after only six months, an amount of 65.2 million euros. A sales turnover of 44.3 million euros was notarized in the first half of the year.
The commission volume also increased significantly to 1.781 million euros as at 30th June. If the option contracts are also included the commission turnover of 3.270 million euros is already around 1 million euros higher than in the whole of 2020 (2.718 million euros).
“At the moment, it looks as if 2021 will surpass our boom year of 2017”,
declares Timo Weibel who is responsible for the real estate business for Porta Mallorquina Real Estate and himself operates two franchise licences in Santanyi and Santa Ponsa.
New building law takes effect
The building law reform, which was passed somewhat surprisingly in 2020, is having a definite effect with regard to increased purchase interest:
“The building of very large fincas and villas is no longer allowed and this, as expected, has resulted in an upturn in demand for already-existing large properties.”
Estate agents are also noticing a change in the time it takes to sell a property:
“Due to the increase in online viewings, many clients are very well prepared and decide very quickly on-site whether to purchase or not.”
German share of sellers increases
The majority of the clientele is still German, although the proportion of British and Scandinavian Porta Mallorquina customers has remained relatively stable. A new situation is the increasing share of German owners. In the past, the owners were predominantly Spaniards:
“Now the share of Spanish and German owners is almost the same,”
says Timo Weibel.
This fact comes as no surprise to him – since 2015, German buyers have predominated in Mallorca and as holiday properties have a faster turnover time than classic residential properties, it is logical that the strongest group of buyers now is also increasingly taking a leading position in the sales area.
In Porta Mallorquina’s opinion prices are largely stable. When the market is lively interested parties may try to outbid each other, but this is not the rule. In the meantime, however, marketing times have shortened again. Particularly properties not in need of major renovation and situated in attractive locations are generally quickly off the market.