Article by the Secret Surveyor.

Knowing whether the price of the average property is going to increase or decrease is key for investors looking at the property market. We are going to lay out some predictions and show a general overview of the trend of property market prices in the Balearics.


  • 3rd most expensive region in Spain with an average price of m2 of 2272 only behind Madrid and Basque Country.
  • 3rd region which has grown the most since 2015
  • At one of the highest points it has ever been

Only real case of growth since 2004

When analysing the price of property in the Balearics it is interesting to note that official valuations are much higher than they were at the pre-recession phase. As opposed to the rest of Spain, the Balearics average price of $/m2 is 23% higher than what it was in 2004. This is the only real case of significant price growth in a large region in Spain. The only other regions which shows a similar trend are Galicia, Extremadura and Cataluña all with growth under 10%.    

It is in fact in one of the highest points it has ever been. Current price of property is only behind years 2007 and 2008.

There is growth but it is slowing down.

The Balearics show strong growth in the last 3 years. Price’s have gone up significantly: since 2015 they have risen by 13% making it the 3rd region with biggest growth in that space of time.

However, in 2018 there is a significant change: in comparison to 2017 there is only a 3% increase. Opposite to the 2015-2018 period, during this year growth is below the average in Spain. In the last quarter of 2018 change was of only 0,4%, significantly below the average in Spain and one of the lowest quarterly growths in recent years.

Why Balearics has been so strong

Inland Spain was significantly more affected by the property crash than the Balearics:

  • Foreign Investment. Balearics wasn’t as dependent on local market and hence demand for property didn’t fall as much as in other regions.
  • Luxury market: known to be much more stable in recessions, the Balearics has one of the biggest luxury markets in Spain.

Will prices keep going up?

Balearics have historically been a very strong growing market yet growth seems to be slowing down. In fact what makes the Balearics a strong market is in fact slowing down the growth.

The Balearics are a strong stable market as mentioned due to the size of the luxury market and due to foreign investment.

Two key exogenous factors have caused these pillars to cause stagnation:

a) Macroeconomic tensions: Brexit, yellow vests, Trump, Putin… 2018 has been a year full of uncertainty and political tension. 2019’s prediction is uncertain for everyone. Brexit exemplifies how this affects the property market. British citizens (historically one of the strongest buyers in the market) do not know whether there will be any changes in tax payments, regulation or even their rights as EU citizens if they buy a property in Spain. This undoubtedly has caused, and will cause, property markets to stagnate.

b) Local legislation uncertainty. The Balearic government, and specially the Palma Town hall, has created and changed laws regarding property during their whole legislation. The mayor of Palma is in fact being taken to court regarding a controversial law regarding property rentals. As with foreign buyers, uncertainty is causing many buyers to not buy in Palma and the Balearics.

Will prices keep going up? The market is stagnated. There are however positive signs: Brexit deal looms and there are going to be regional elections at the beginning of 2019 in the Balearics. It would be impossible to give a realistic prediction yet the mere fact that part of the uncertainty will be taken out of the equation will most definitely help the property market.

All data is taken from the official Ministerio de Fomento 2019 document. Find the methodology in:

Keyro 2018 annual property summary and 2019 predictions

The Balearics is shown as having the best growth, reaching 90% of the pre-crash values.

Strong price growth in the last 12 months has been seen in Catalonia (9.1%), the Balearics (7%), La Rioja (6.7%), Cantabria (5.7%) and Castile Y León (5.7%).

Keyro expects to see a continuation of the current trend for growth in mainland regions with easy access to the coast. They consider the islands and coasts to be expensive.

Full article link below.–8lFzheI-9S2a7IMW842_VjdqoNIW5AeQYERW0TqXvNQuLS1XqcZuYpKBrwEexJhwLQBksTcRnEOp4WrJPTHbnGQcPiw&utm_content=68692203&utm_source=hs_email&hsCtaTracking=a484f630-1fb7-49be-982f-8d87a047f602%7C4a77fb3c-09a6-461a-8d61-d56c01e7332a

Italians outnumber Brit Purchasers for the first time in 2018

Foreign investment in the Baleares continues to increase according to the “Consejo general de Notariado“. Average sale prices has risen to 2,790€ pm2 compared to the national average of 1,687€ pm2.

The latest figures show the Italian market is now stronger that British.

For the first 6 months of 2018, Germans continue to lead, amounting to 23% of all foreign purchases. The second strongest was Italian with 15%, closely follwed by the British, Swedish, French and Swiss.

Interestingly, it appears the majority of purchases appears to have been made by Italian businessmen/women who chose to reside on the islands.

Improved air links with Italy have helped to boost Italian residency, along with poor economic opportunities at home.

Property Works quoted in regarding surprise drop in registered sales in the Balearics

SPI article by Mark Stucklin





Home sales in the Balearics fell by an annualised 27% in May and 18% in June, whilst most other local market popular with foreign buyers continued to grow, according to recent figures from the National Institute of Statistics (INE). How to explain the Balearic decline in sales? Is it just a blip, or the start of a trend? I asked some property professionals on the front line of the Balearic property market for their view of the market today.

It helps to know that the housing market in the Balearics has been growing strongly since bottoming out in 2013 (chart above), and has been one of the hottest markets in recent years both in terms of sales and house price growth, after suffering a far milder crisis than most other parts of Spain. Homes sales in the Balearics have increased steadily since bottoming out in 2013 at just below 8,000 per year, to finish 2017 at 15,516, so an almost 100% increase in four years – one of the biggest increases in all of Spain (exceeded only by the small province of Alava in the Basque Region, up 120% in the same period). Of all the regions relevant to foreign buyers, and especially upmarket buyers, the Balearics have enjoyed the longest and strongest recovery in property sales since the market turned around, and obviously that trend can’t continue for ever. It was inevitable that at some point home sales in the Balearics would start to cool down, especially considering the housing supply restrictions that affect islands with a shortage of building land.

If you look at the year-on-year change in monthly sales over the last 12 months (next chart) you can see that Balearic home sales have increased by more than 10% in seven of the last twelve months, and only fallen in four of them, though you could argue the negative months look a bit like the first signs of a new trend. That said, the decline in March was in part due to Easter falling in March this year, which reduced the number of working days that month. I would not attach much importance to the decline in December or March, but that still doesn’t help explain a 27% decline in May, and the 18% decline in June.

Industry Insiders comment from the front line

Alastair Kinloch, RICS surveyor and head of Property Works in Mallorca
“The word on the ground is that the only premium properties that are shifting easily at the moment are those I would class as “development opportunities”. Buyers still want value, even if they are paying millions. Prices seem high, and perhaps too much inflation in asking prices has occurred in the last couple of years, with vendors getting greedy. An example: During a recent valuation in Bendinat, Calvia, I argued the value was around 4m€. The owner thought 5m€ was closer. I reminded him he paid 2.5m€ in 2012. Even at 4m€, there was a significant profit. Lots of properties have not sold. Competitive pricing seems to be the only way to sell (unless you get lucky!). Fingers crossed it is blip and nothing more.”

Marc Pritchard, Sales & Marketing Director of Taylor Wimpey “While recent figures for the Balearic Islands show a decrease in sales, this isn’t reflective of the full picture when it comes to the islands’ property market. Much of the declining sales rate is actually attributable to a significant shortage of available properties at affordable prices on the islands. Demand is still strong, with Taylor Wimpey España’s Mallorca reservations up by 25% year to date compared to 2017, in stark contrast to the reported drop in sales. Those building in the Balearics right now are seeing the full picture of the property market ‘on the ground.’ Buyers are seeking high quality homes at decent prices – and they’re looking to new build properties to deliver what they otherwise can’t find for sale in their chosen locations. The decline in sales therefore doesn’t so much reflect a lack of confidence in the market, merely a lack of supply.”

Lone Schaefer, Kelosa Selected Properties in Ibiza “I am surprised by the figures showing a decline in sale. It is probably more about the apartments market. People sometimes bought several apartments at once to rent them out to tourists. Since the authorities have taken action against illegal letting – and apartments are generally not granted a license, this market has declined. But in our market for large villas and country estates I have not noticed any decline. So personally I think it’s probably a blend of factors including a shortage of home that people want or can afford, the holiday-rental restrictions turning off some buyers, with some segments completely unaffected.”

Balearic government aims to phase out Green house emissions by 2050

A bold move by the Balearic islands’ government to phase out greenhouse gas emissions by 2050 is being considered in a new green manifesto, which includes banning diesel cars and changing all street lighting to LEDs.

Other plans include

  • buildings with roof spans of more than 1,000 square metres – car parks, hospitals, supermarkets and sports stadiums will host electricity generating solar panels.
  • Coal plants will be phased out by 2035,
  • All car hire fleets on the islands will be electrified.

Francina Armengol, the president of the Balearics’ socialist-green government, said  “It has to be this way if the law is to be more than a mere statement of intent.”

Joan Groizard, the islands’ director-general for climate change said the move put them on a path to confrontation with Madrid, and his government was studying the legal implications very carefully. There is a live debate about what regions can and can’t do, and this requires careful consideration.

He states “We can’t ratify the Paris agreement on our own but we can take a decision to adhere to it. Climate change is already having a big impact on our islands and hopefully our actions can have a knock-on effect elsewhere.”

The Balearics government says that if its climate plan is blocked, it will refuse to upgrade its Alcúdia coal plant in Majorca in time to meet a 2020 deadline for new EU emissions limits.

“If we sit on our hands and do nothing then on 1 January 2020, the plant will not be able to work, because it will be in breach of the EU legislation,” he said. “We are hoping it won’t go that far. But we do have pockets of sovereignty – or power – that we’re planning to use if we need to.”

Your own flatpack house for 30,000€ built in 6-7 hours?


New homeowners are looking for inexpensive, unique, greener, and smarter homes that are durable and energy-efficient at the same time. Prefabricated homes are one solution.

Architect Renato Vidal from Italy has designed a miniature home which he claims can be built in 6-7 hours. It is built in a factory, doesn’t need concrete foundations and can also be upgraded to run off grid.  It is claimed to earthquake resistant

The foldable design was created by Italian architect, Renato Vidal   All basic models include a fitted bathroom, kitchen connections and technical installations

The best bit is that the homes can be folded up and transported when you get bored with the location.

Too good to be true? Perhaps, as the 30,000€ quoted is for just 27m2, below the minimum permitted size of a habitable property in Spain.  The larger 2/3 bed models are much more practical and appear to be priced at about 60,000€.  Land costs, site purchase and fees would have to be added to the equation.

Prefab homes are the homes of the future. The exceptional convenience, cutting-edge architecture and eco-efficiency are everything that a homeowner would love to invest in, especially in these changing times.



Palma town council to ban holiday rentals in apartment blocks

We understand Palma town council is close to banning holiday rentals in apartment blocks.

Long term rentals will not be affected, nor detached or semi-detached dwellings and always when a specific tourist rental licence is granted.

The Gobern Balear, will also empower other local authorities across the islands to prohibit apartment rentals if considered necessary.

The legislation has come about via an unlikely alliance between the left and right wing parties as a result of skyrocketing long term rents, overcrowding and a strain on local infrastructure.

There has also been opposition from the hoteliers, who see holiday rentals as unregulated and unfair competition.     Similarly, block residents have been complaining about the general poor behaviour of holidaymakers.

We understand the exact details of the new law have yet to approved, including the prosecution process.

Other measures being studied include a limitation on the number of holiday rental properties an individual may exploit.

long term property rental prices have soared in the last 12 months with an average increase of 6% pa.

Mark Stucklin at Spanish Property Insight discusses British demand on property in Spain

Great article by Mark Stucklin see

What impact has Brexit had on British demand for property in Spain?

What impact has Brexit had on British demand for property in Spain in the five months since the referendum? The latest official figures show a substantial fall in British purchases, and a survey I recently carried out suggests a big overall drop in British buyer activity, especially in the top two destinations of the Costa del Sol and Costa Blanca.

The latest official figures from the Spanish Association of Land Registrars shows that British home purchases inscribed in the Land Registry fell by 16% (yoy) in the third quarter, the first decline in years (see chart below). The Brexit effect is clear, and I expect the Q4 figures to be even worse.

spanish property sales

To get a better idea of the impact in the five months since the British voted to leave the EU I’ve carried out a survey of property professionals in different parts of Spain including estate agents, buying agents, lawyers, mortgage brokers and surveyors, working in Barcelona, the Costa Brava, Costa Blanca, Valencia, Costa del Sol, and the Balearics, answering questions about the market between July and October. I got 22 responses back in October and November answering questions on British buyer interest, sales, budgets, concerns, and vendor behaviour.

Despite variations between regions and price segments, the overall picture was one of a big decline in British buyer interest in the months leading up to, and just after the referendum. However, there are also some signs that British buyer interest might now have stabilised at a lower level, helped by a bit of a recovery in the pound, though it is still too early to tell.

The following table summarise the impact of Brexit on British demand in the first few months after the referendum in most of the foreign buyer destinations in Spain, based on the experience of the professionals surveyed. The results are subject to individual bias but the overall picture is clear.

All Spain Initial spike in enquiries then 30% fall Big decline
Costa Brava Initial spike then big fall in some cases No change to big decline
Barcelona 20% increase Moderate increase
Costa Blanca / Valencian Declines of up to 80%, typically 50% to 60% down Big decline
Murcia Slight increase in enquiries No change
Costa del Sol Declines of up to 80%, but typically 20% to 30% down Moderate to big decline
Balearics Declines of up to 35% Moderate to big decline

Other market observations that came out of the survey were as follows:

  • Agents reported agreed sales falling through in every region as a result of Brexit, but in areas like Barcelona buyers from other nationalities stepped in quickly to take the place of British clients who backed out of sales.
  • In almost all cases the main reasons given for the decline in British buyers were 1) the decline in the pound and 2) the uncertainty generated by Brexit. That said, the weaker pound was the main reason. Had the pound gone up after Brexit, is it is likely that British demand would also have gone up.
  • Many Britons have put their plans to buy a home on Spain on hold for the time being, but those who have not are now looking with lower budgets in Euro. It seems budgets have been hit hardest in the middle market, whilst some professionals working in upper market segments of the of the Costa del Sol, Balearics, and Catalonia, reported no change or even a slight increase in the Euro budgets of British clients. This could be because wealthy clients have more diversified sources of finance available to them.
  • In most areas the Brexit effect was limited to the British market, but some professionals also reported noticing a spill over into other markets, as buyers from other nationalities decided to adopt a wait and see approach, or try and take advantage of the situation to make lower offers.
  • British vendors are now more flexible on price in most areas, so buyers have an opportunity to negotiate a better price with British vendors, all thanks to Brexit.

I have also noticed that some Spanish property companies have decided to drastically scale back or even stop marketing in the UK, which is just another reflection of the Brexit impact.

How much will British demand shrink? It all depends on where the pound goes from here, but I’m bracing myself for a 50% decline or more if the pound doesn’t recover. How do I get that figure? Look at where sales were the last time the pound was this weak, as illustrated by the following chart.

spanish property british demand brexitEven if British demand falls 50% it would still be the biggest national segment in the foreign market. But a decline of that magnitude would certainly be felt by the rest of the market, putting pressure on vendors and prices in middle market areas of the Costa Blanca and Costa del Sol.

Will British demand ever return to the level it reached at the end of 2015, when it was still a long way below the boom-time level? I imagine so because Brexit has not changed fundamental preferences, just circumstances. But who know how long it will take. As one agent on the Costa del Sol said to me “you can forget about the British market for at least a year.”

Thanks to the following professionals for their help with this survey:

NAME Company
Kevin Monger Mortgages Direct
Karen Storms Lucas Fox
Alfredo Millá Soneil
Tom Maidment Lucas Fox
Louisa Grundon PCI Pals
Eloi Ruart HFP Management
Gordon Turnbull Blue Med
Pia Arrieta Diana Morales
Chris Clover Panorama
Adam Neale Terra Meridiana
Desmond O’Connor Consultant
Barbara Wood The Property Finders
Catriona Hogan Your Viva
Oscar Ernstsen Villas & Fincas
Ailse MacFarlane Land Corp International
Campbell Ferguson Survey Spain
Alex Reyners Neverland Properties
Alastair Kinloch Property Works
Pedro Pons Pons Anglada
Conor Wilde Found Valencia
Daniel Talavera The Spanish Brick
Martin Rowen Marow Chartered Surveyors


A country life – 10 reasons why Sóller is probably the best place to live in Mallorca

by Alastair Kinloch MRICS

As Mallorca based Chartered Surveyors for over 20 years, Property Works has a unique insight into what purchasers should be looking for when buying a home in Mallorca. We also get to understand their needs, even if they do not recognise each and every one themselves. Our approach is holistic (not just an economic one) considering lifestyle, leisure, work, family and health.

So why do we consider this unique town as the best place to set up home/invest in a country location in Mallorca?

Here’s a guide to why…


10. Variety really is the spice of life

Sóller’s (pronounced soy-yer) maze of medieval streets and alleys hides an impressive array of properties from modern port apartments and villas to old town houses, factory conversions and traditional country estates.

The majority of construction is traditional and natural, especially outside the urban centres with the use of stone facades, curved terracotta tiled roofs and timber doors and shutters. This gives the place a certain aesthetic harmony which has been complimented with relatively strict planning controls.

1  2-Optimized

Typical Solleric constructions… 

Unusually for the island, many of the town houses have three storeys, unlike any other town centres on the island where two are more common.

Our experience of working in the construction industry monitoring quality, materials, methods, timings and prices gives Sóller’s constructors a big “thumbs up”.  The work carried out is often not cheap so be sure to get various quotes and be clear on the time schedule for delivery.

Fortunately it is still possible to find projects in Sóller, especially in the old town where many large family homes can be purchased for renovation at a relatively reasonable price per meter square. Many retain original features such as beautiful curved open staircases with intricate ironwork and marble panelled walls, carved woodwork and stone, crystal skylights and ancient fired floor tiles.

Art Nouveau and Modernist influences in the architecture are everywhere.  The port offers both traditional and contemporary properties. Mountain retreats are also an option.

3   th (9)

 from grand Art Nouveau town houses to rustic mountain retreats…

6   5

modern apartments in the port to fantasy modernist homes

Sóller really does have it all.


9. Eat, drink & be merry!

Extra-virgin olive oil, ripe tomatoes and sweet peppers, salad greens, heart-healthy avocados, garlic and onions, immaculately fresh seafood, mountain lamb, plenty of legumes (especially chickpeas), and rice, bread, and big, flavourful red wines. What more could you want?

Sóller can give you the Mediterranean diet with excellent locally sourced, market produce and restaurants.  Its specialist products  include:

 Prawns, fish and other shellfish.  Gambas de Soller are famous for their colour, texture and flavour.

Citrus fruits – More than 600 years ago Arab sailors brought citrus trees to Mallorca and converted Soller into an orange valley, often known as the “golden valley”. Thanks to the abundance and quality of the mountain water as well as the abundant sunshine, Soller now produces over 120,000 oranges a year.

Olives – The Mallorquin olive (now recognized as a protected product) is known for is intense green colour, saltiness and aromas.   Oli de Mallorca has multiple culinary uses, its exquisite taste and its health benefits let enjoy a high quality and tasty food. As a basic part of the Mediterranean diet, the Majorcan Olive Oil has vitamins and unsaturated fatty acids. It is a pure olive juice, produced without chemical processes, becoming a high quality aliment.

Almonds – The Mediterranean climate and the dry farming crop system gives the Mallorcan almond its unique characteristics. Its sweet taste, a greater content of proteins, fatty acids and carbohydrates, make this a universally desired product, used in a great variety of foods.

 Wine –  The Mallorcan wine industry currently boasts 70 different wineries, some of which are highly recognised nationally and internationally.


8. The Environment

“Nature is not a place to visit. It is home.” ― Gary Snyder

Sóller is situated right in the middle of the Tramuntana mountain range, a region awarded World heritage status by UNESCO as an area of great physical and cultural significance.

It is a range running the entire length of the island with the highest peak, Puig Major,  at 1445m. To put that in perspective, Ben Nevis, Britain’s highest mountain is “only” 1219m from sea level.

th (2)   1024px-PuigMajor5

Views of mountain terracing and the reservoirs at Escorca

What makes this mountains so special are their size and shape, being 90km in length and 15km at its widest point taking up about a 1/4 of the whole Mallorcan territory. Its narrowness and height means the mountains fall dramatically into the sea and on the plains.

The area is an absolute dream location for walkers, cyclists, beach and nature lovers.

th (6)-Optimized  th (7)-Optimized

 Cala Deia and Tuent – about 15 minutes by boat from Sóller. 


7. Airports don’t have to be terrible

Mallorca’s airport, Sant Joan, is the third largest in Spain and carried over 23 million people in 2014. Over 100 airline companies use the airport and flights to most cities in Europe are covered. The island enjoys good winter flights schedule, unlike many other smaller Spanish airports which often require connecting flights. In fact, Mallorca is increasingly becoming a “commuter destination” and gives many people the opportunity to work in Mallorca allowing for extended stays. Ibiza, Menorca & Barcelona are all about a 45 minutes flight away from Palma. One can reach the airport in about 35 minutes from Sóller.


6. Palma or Ciudad/Ciutat









A panel of judges for the Sunday Times supplement recently  chose Palma de Mallorca as their overall favourite out of fifty top worldwide places to live. It was described as a destination that “has it all”.

Palma is reached in just 25 minutes, most of the journey though attractive rural countryside. There is also a train and a regular bus service.

Nuff said.


5. Sóller – not one town, but two (or even three)

Evidence of early settlers has been found in Soller dating back to talayotic times. (2,700-5,200 BC) in the “La Muleta” area.  Soller’s development is likely to have evolved over the years due to its great natural resources and the enterprise of its people, trading (oranges/olives/fabric) with Barcelona, Valencia, and France. It is still possible to see wonderful turn-of-the-century  factories (in various states of repair!) through the town.

Soller has two distinctive, but complementary centres. The port and the town are some 5km apart connected by tram or road. They offer completely different ambiences.

The port is an almost perfect circled bay with a relatively small opening to the open seas. It enjoys a pedestrian walkway, sandy beaches and a small marina. Although some development has occurred (there are a few medium sized hotels), the area is relatively low density and unspoilt and retains its fishing village feel.  A lot of investment, both private and public, has occurred in the area with the new port-town tunnel and the complete renovation of the port front. Private investment includes the creation of the Jumeirah resort, a five star hotel perched on hill often described as the best hotel in Europe. The port has many excellent shops, bars and restaurants, great walks and usually a place to keep your boat.

11     12

The Port of Sóller and swimming off the coast  

Buying or renting a small boat and exploring the coastline by sea is a must. True Mediterranean seas still, crystal clear seas and miles of unspoilt coastline are there for the taking.

Beyond the port, Soller is an expanse of land known as the “valley” due to its position between the surrounding mountains. It is an exceptionally green and fertile place with mainly almond, orange and olive groves filling the valley.






The town centre has a mainly medieval feel but marked by its extraordinary modernist architecture. Examples of this are the Gran Hotel, Can Prunera, the church and the banco Santander buildings. It has a thriving artisan market and a wonderful square.

th (1)-Optimized th-Optimized

The Gran Hotel                                                    The Church 

The third area is Biniaraix, possibly the most picturesque and unspoilt hamlet on the island.  It sits on the outskirts of Soller at the foothills of the Barranc, an ancient mountain footpath leading to the mountain reservoirs in Escorca. For administrative purposes, it is actually run by both Soller and Fornalutx.  The houses in the village are entirely stone build and most streets are cobbled and pedestrian.

biniaraix-l2183-Optimized th (1)








4. Work & lifestyle balance

Suffice it to say it pretty likely to be a lot better that back in the UK.


3. Education and health

The world health organization ranked the Spanish health system as being the 7th best in the world, with France coming first and the UK in 18th position. Two new public hospitals have been built in Palma in the last 10 years, Son Llatzer and Son Espases, offering some of the most modern facilities in Europe to the Mallorquin residents and guests.

Complementing the new public centres, Mallorca´s private healthcare has also been reinforced with improvements at hospitals such as at Clínicas Palmaplanas, Policlinica  and Juaneda, all located in Palma and usually accepting international cover by groups such as Bupa and Axa.

On our last count Soller has at least 8 schools, educating kids from 3-18 (not counting nurseries). For international schools there are at least 8 more in Palma and beyond offering baccalaureate, primary, and O/A level study.


2. The People

The Sollerics are a warm and friendly bunch, just learn some Catalan and Some Spanish and you will always be welcomed.

Sóller and its surroundings have been attracting artists, musicians, sports & nature lovers, young families, actors, entrepreneurs and retirees in its droves for years. When hunting for a home, it pays in every way to follow the cool crowd, either to the city, the suburbs or the countryside.

It now has a very multicultural society, attracting amongst others, British, French, German and Scandinavian Europeans. There are also large South American and African communities.  One must also add the “forasters”, the non-Sóller born residents from other parts of Mallorca or the mainland.  This foreign contingent offers a richness to the society which has, overall, integrated well within the Sólleric community and contributed to make this such as special place.


1. The Economy, stupid

Enough with the doom and gloom about homeownership in Spain.

Things are looking bright again for Spain…..

  • The exchange rate between the UK pound and the Euro is now at its best level since 2008 offering an extremely attractive €1.38 to the pound. So at todays rate, a €1m property would cost about £725,000.
  • With around 2.8 million legal foreign residents in Spain, not to speak of ever-increasing tourism figures, Spain has become a top destination for foreign property investment. The Spanish Ministry of Tourism predicts that more than one million foreigners will set up home in Spain in the next six years, and this figure is expected to treble by 2025.
  • Interest rates also remains extremely low at under 0.2% meaning borrowing has never been cheaper.  Quantitive easing by the European central bank means over 100 billion Euros is coming to Spain. A big chunk of this this will be made available for banks to lend.
  • Soller has relatively low unemployment in the national context.
  • A large flourishing rental market is offered in Spain and investment in a property with good rental potential can achieve excellent returns. Spain is a top choice for tourists who enjoy a variety of self-catering accommodation, apartments and private villas. Get it right, and you could rent your property out for six months of the year to cover costs and have it for your own use, free of charge, for the rest of the year.
  • From an economic point of view, It is always good to follow infrastructure investment in and that is what has happened in Sóller A prime example of the town´s transformation is the centre, with its main square and main shopping street or Carrer de la Lluna, which has changed spectacularly over the past ten years. This area is now almost fully pedestrianized and has filled up with welcoming terraces, boutique shops, and a lovely food market. It is now a must-visit for the thousands of tourists who are lengthening the island’s season from the beginning of March to November.
  • According to Kyero, the average price for property in Soller is at 468,000€, almost double the national average. Prices have remained resilient during the crisis, mainly due to limited stock and an increase in demand.  It is not cheap by Spanish standards, but it appears that historically, capital growth has occurred and will continue to do so.
  • Nationally, market conditions are improving with prices up 1.8% and 2.4% increase in sales. Construction spending is also up 34% in Mallorca alone in 2014.






Palma – the best city in the world to live…

According to the Sunday Times, Palma is the best city to live in the world 2015. Below is an extract from the article.

images-Optimized“Our winner is Palma. We believe it has everything” said the newspaper. Although not explaining the exact criteria when making its choice, it does highlight some of the elements that make Ciutat de Mallorca attractive to the British, including the climate, the beauty of the old town , gastronomy and beaches.

“It ‘s a pocket-sized city that has it all on a beautiful island ”

Another argument is that the city is easily accessed for a Brit who wants to live abroad. The short distances across the island are a plus to living in Mallorca emphasising that Palma is a ten minute drive from the airport and throughout the year there are cheap flights.

Apart from Palma , Sunday includes three other Spanish cities in their top 50: Barcelona ; Ojén north of Marbella, and Zahara on the coast of Cadiz.

In the list of the 50 best cities to live in, the Mallorquin capital has also been located ahead of destinations such as Berlin , Honolulu, Miami , Rome, Florence , Paris, Vienna , Stockholm , Copenhagen , Rio de Janeiro and Sydney.