Palma de Mallorca is the picturesque southern city and the year-round resort. Its nickname is "Little Barcelona", and it is one of the best places for those who prefer a calm life, as well as for party-goers .
"Palma is in 10 minutes from the international airport with everyday flights from all over Europe, and here you can enjoy a variety of architecture, cultural events, and also gastronomic and shopping," says David Scheffler, CEO of Engel & Völkers Spain.
Since the beginning of 2012 the Mallorca's real estate market is showing recovery. Agencies report that buyers have become more interested in purchasing of houses and apartments on the island. Thanks to residents of Nordic countries - Sweden, Norway, Austria and Germany - who try to buy Mallorca's real estate as yet prices remain low.
Six years ago, in 2007, a sq.m in centre of Palma went for €9,000, right after Madrid and Barcelona. Now the market is bottomed out, and compared with 2007 prices have fallen by 10-20 %. But it won't take long for prices to increase. According to David Scheffler, now they sell 30% more real estate in Palma than a year ago, and probably at the end of the year prices of high-quality housing will start to grow .
The opening of four new luxury hotels in the old town of Palma is one of recovery signs. In addition, Mulberry and Louis Vuitton stores were opened a while ago, and the large mall will be built in Playa de Palma to 2015 .
The new Spanish laws will also contribute to Palma prosperity. Since next year, the Spanish government cancels the tax on yachts longer than 15 meters. In addition, local authorities believe in the effect the "golden visa" law under which the residence permit in Spain will be available for buyers of property worth at least € 500,000 .
Average price of a house in Mallorca is €300,000 - € 3,500,000. For example, a 150 sq.m villa in the suburbs of Palma, with a beautiful view to the city, can be purchased for €975,000, and the 850 sq.m mansion with a swimming pool costs € 3,25 million .
Average price of apartment in Palma amounts to €100,000 - €600,000. For example, a three-bedroom penthouse of 113 sq. m, located in few minutes from the old town, costs €450,000. But there are cheaper flats: for example, a studio of 38 sq.m costs €79,000 .
Text: Kirill Ozerov, ee24.com