Mallorca’s property market is experiencing an influx of buyers from the US, it has emerged.
According to experts on the Spanish holiday island, Americans accounted for 12% of sales in the luxury market last year.
The astonishing figure was revealed by Roberto Espada Horsfall, from Mallorca Sotheby’s International Realty, who spoke to property magazine Mansion Global.
He said the island is ‘very international’ and has appeal thanks to its low crime, good international schools and luxury offerings – not to mention its stunning beaches and relaxed way of life.
According to Florian Hofer, managing director at Engel & Volkers Balearics, buyers are flocking in from major US cities including San Francisco, Los Angeles, Miami, New York, Chicago, Washington, Dallas and Boston.
The typical buyers are middle-aged couples looking for a holiday home or families hoping to settle down near quality schools.
Hofer told Mansion Global that Americans have now ‘established themselves as a growing profile.’
It comes despite a growing anti-tourism movement that is partly sparked by a lack of housing for locals due to soaring prices and a shortage of stock.
Several protests over the past few months have seen Mallorca beaches ‘blocked’ by furious residents who blame tourists for rising rents and cost-of-living woes.
However the luxury property market continues to grow, with American clients opting for all types of properties.
Hofer said townhouses with pools and gardens in the middle of villages have become increasingly popular.
“As rural houses have become more expensive, the village townhouse offers a good alternative,” he said.
“In the center of the island and in the west around Soller/Deia, demand from potential new American clients has doubled.”
In fact Engel & Volkers saw demand from the US surge so much last year that 2023 was dubbed its ‘third best year in almost 35 years of operations on the island.’
The average sale price of the firm in 2023 witnessed a 14% year-on-year increase, while the number of homes sold by 88%. The average sales price also grew by 74% over the same period.
“There’s confidence in Mallorca’s real estate market because of its proven track record to provide solid long-term returns on investment,” Hofer added.
“It remains a leading second-home destination in the Mediterranean and is increasingly being considered as a primary residence for families.”
Horsfall agrees that the ‘market has not stopped growing’, adding: “In the last five years, prices have increased between 20% and 25%.”
It comes as countless workers on the island are unable to find places to live.
A report from local newspaper Diario de Mallorca in March said hotels have been forced to give up rooms for staff due to the unaffordable rental prices near major resorts, which can be as much as €3,000 per month.
For context, the average salary in Mallorca is around €1,800 per month.
