With the Workation concept, sun, beach and your own workplace can be combined. Some Germans are therefore increasingly drawn abroad and especially to the Spanish island of Mallorca.
Balearic Islands are becoming increasingly popular among property buyers
The Spanish island of Mallorca has always been a popular holiday destination for Germans. The infrastructure of the Balearic Island is designed for around six million tourists a year. In contrast, the island’s population is quite small at around 910,000. Eleven hospitals, 23 golf courses and 17 international schools are available to them all year round. During the Corona pandemic, however, Mallorca also developed into the most popular destination for a second home in Europe, as the real estate service Engel & Völkers explains in its annual Mallorca market report. Accordingly, real estate on the first sea line as well as more rural and rustic properties are particularly popular. The most popular places to live include Alcúdia and Pollensa, as well as the municipalities of Campanet, Búger and Muro.
As Mallorcamagazin explains in reference to CERES, the popularity of Balearic real estate is also reflected in the decline in supply. Accordingly, the current portfolio consists of around 3,750 properties on offer, which corresponds to a decrease of 18 percent compared to the previous year. If you now look at the southwest of the island, the decline is even as high as 32 percent. Engel & Völkers can also see this trend in the annual market report. For example, more properties were sold or taken off the market by the company last year (59 percent) than new ones came onto the market (41 percent).
That is why Mallorca and the Balearic Islands are so popular
The Corona pandemic at the latest shows that working remotely from paradise no longer has to remain just a dream, but can actually become reality. Some people are increasingly drawn abroad, including to Spain. But what makes the Balearic Islands and especially Mallorca stay the same? In addition to the shopping opportunities, party and resting places and international schools, Mallorca also attracts with around 300 days of sunshine a year, the numerous beaches and the extensive nature. The island’s digital infrastructure is also good, so there is already WiFi in every small village, which makes the option of a workation even more attractive. Another plus point is the direct connection to Germany and other European countries, as explained by the Algarve magazine.
Real estate prices are rising sharply
However, along with the popularity, the prices are also increasing. When asked by the Handelsblatt, experts from the Spanish real estate valuation company Tinsa explained that real estate prices in the Balearic and Canary Islands have risen by a full nine percent. Engel & Völkers also comes to the conclusion that the increasing demand is significantly increasing the price level. Accordingly, the price level reached a new record high in 2021 with an index value of 150 percent.
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