Mallorca cyclist influx boosting property market
Mallorca’s property market is in top gear, welcoming over 200,000 cyclists each year with many looking to rent or buy property in Spain.
2 minutes to read
Cyclists are a growing source of buyer and rental demand on the island with Puerto Pollensa, Deia and Soller are favoured bases, but for those seeking year-round amenities and accessibility, many look to Port d’Andratx, Son Vida and Bendinat.
Sales exceeded 19,000 across the Balearic Islands in 2022, the highest volume recorded since 2007.
A holiday rental license introduced in 2018 sees properties with an existing license generate a premium on sales.
The Partido Popular’s electoral victory in May means a cap on overseas buyers purchasing second homes now looks unlikely across the Balearic Islands.
Buyers return to Spanish market
Buyers are back post-Covid, and in large numbers, with cycling proving big business.
In 2019, 200,000 cyclists visited Mallorca, according to the tourism ministry, a number which is estimated to have increased since the pandemic.
The Formentor lighthouse, situated 188 metres above sea level on the island’s north-eastern tip and the switchbacks of Sa Calobra are top of the wish list for any self-respecting Strava addict.
Alcudia and Pollensa have been the base for Team GB and the former Team Sky, now Ineos Grenadiers, for over a decade with, Puerto Pollensa, Deia and Soller, situated within the UNESCO heritage site of Serra de Tramuntana, are favoured bases for cycling training camps.
Less mountainous but equally scenic, the south-west of the island near Port d’Andratx, also attracts cycling enthusiasts.
Mark Harvey, Knight Frank’s Head of International sales comments, “Although lacking the mountains of the north, Port d’Andratx, Son Vida and Bendinat offer proximity to Palma, the Airport and more year-round amenities for those northern Europeans looking to escape their harsher winters.”
Rental license adds premium
Since 2018, a holiday rental license known as an ETV (Estancia Turísticas en Viviendas) is required for anyone wishing to let out their property. As a result, homes with an existing rental license can command a premium on sale.
May saw an electoral victory for the Partido Popular (People’s Party or PP) across the Balearics Islands. The PP’s win means a proposed cap on the foreign ownership of second homes has been all but scrapped.
Instead, the PP plan to crack down on the island’s illegal extensions, an issue that has blighted the white isle, but the move will reassure future buyers, domestic and foreign alike, and boost market transparency.
Property prices
Prices in the Balearics increased 7.3% in the year to Q1 2023, more than double the national average of 3.1%, according to Spain’s Ministry of Development, while sales exceeded 19,000 in 2022, the highest volume recorded since 2007.
According to Mark Harvey, Knight Frank’s Head of International Residential, “Mallorca has bounced back strongly from the Covid-19 period; its secret is its broad appeal. It attracts one of the most diverse mix of buyers from Brits and Germans to Scandinavians, French and increasingly US buyers, plus some interest from Middle Eastern buyers.”
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