Luxury property market in the Balearics "in decline"

This is the view of estate agencies that specialise in the luxury market. Sales in 2024 are the lowest since the pandemic, there having been growth in the years prior to Covid. Because of this growth, the sector had been predicting that a slowdown would come at some point.

Even so, the cause of this apparent decline is unclear. Hans Lenz of Engels & Völkers and the president of the ABINI association that comprises agencies at the luxury end of the market says: "We would like to know the reason. We believe that it is due to different factors." One, he notes, is that prices have risen for this market as they have for others.

Related news

“Luxury house hunting” is the new tourist pastime in Mallorca

More related news

"There is a significant trend towards a slowdown. The market is moving much less than before." Lenz anticipates that this will probably lead to a drop in prices, and it would be good for the market situation "to normalise" following a boom during which there has been a move from the coasts - the traditional location for luxury properties - to the rural interiors.

An indication of prices comes from the Idealista website. The two most expensive houses in Spain are both in Mallorca - one in El Toro for 41 million euros, the other in Pollensa for 39 million. Almost fifty of the website's properties are priced at 20 million euros or more. It's a case of super-luxury rather than just luxury.

The president of the COAAT College of Surveyors and Technical Architects (COAAT), Luis Alfonso de León, says that "luxury" prices have come to characterise the regular market. "All the products that are coming onto the market, whether houses or apartments, are luxury products."