2012 was a difficult year for the Mallorca market. Despite positive official figures our on the ground experience indicates that many buyers consider that the market is still overpriced.

1. MALLORCA
REAL ESTATE MARKET Q3 & Q4 2012
In 2012, we saw continued strong with increasing interest from the
Unites States, Canada and Australia in
interest in short-term rental and the purchasing Mallorca luxury properties in
2012.” says Rafael Calparsoro, Director of
best properties on the island were Lucas Fox Mallorca.
sold quickly Rafael Calparsoro
Lucas Fox Mallorca Sales Director “We expect this interest to continue
in 2013, as well as from our traditional
markets across Europe and the UK, and
Mallorca Real Estate Market: we expect the number of transactions the interest from Russia which has been
Summary of luxury property to increase building for the past two or three years
through 2013 as more discounted to keep growing.”
2012 was a difficult year for the properties come onto the market and
Mallorca market. Despite positive international buyers purchase the best “The islands’ natural beauty, the
official figures our on the ground of these properties in prime locations. fascinating charm of Palma’s Old Town,
experience indicates that many world class golf facilities, and easy access
buyers consider that the market is “In 2012, we saw continued strong by yacht and air are well appreciated by
still overpriced. This is reflected by interest in short-term rental and the visitors to Mallorca. For the last several
the fact that those transactions that best properties on the island were years, the island has become a haven
are taking place are closing at prices sold quickly as buyers were reluctant for many returning visitors looking
considerably below asking price. We to let opportunities linger too long. for luxury travel opportunities in an
expect more discounted properties to We also saw growth in new markets, unforgettable location,”
come onto the market and hope that
this should reanimate the market as
more diverse international buyers catch
on to the quality property and location
advantages of the Balearic Islands.
“In our opinion the Mallorca property
market is still somewhat overheated
with many property owners continuing
to aim for unrealistic sales prices
despite the fact that their properties
have been on sale for several years”.
Said Alexander Vaughan, Director and
Co-founder of Lucas Fox. “There are
some green shoots in the market and Property Sales Transactions: Mallorca and Spain: 2012 / Source: ine.es
MALLORCA REAL ESTATE MARKET Q3 & Q4 2012 www.lucasfox.com

2. Mallorca Property Transactions Town. Larger apartments with more 2011 2012
than 200 square meters and properties 4000
with sea views sold for between €1.2
The official figures show that Mallorca
and €1.8 million throughout the year 3000
and Ibiza had a year of strong trading in
2012, with 30% more sales transactions 2000
recorded in some quarters than in Mallorca Rental Market
2011. In particular, February, May and 1000
August saw increased property sales Average rents per square metre fell
transactions, with patterns again slightly in all Mallorca regions between 0
trending upward entering into the the first and final quarters of 2012,
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sept
Oct
Nov
Dec
fourth quarter of the year. In our although no area suffered more than
opinion these positive figures are a 40 centimos reduction in average Mallorca Airport Arrivals (‘000s):
mainly as a result of increased activity price per square metre, according to 2011 & 2012 / Source: Aena.es
in the Ibiza property market. webportal Fotocasa. Calvia in West
Mallorca rose slightly by mid-year but
Mallorca Property Sales Prices then dropped again slightly, ending during the year, a drop of only 0.3%
the year on €8.89. The Q2 increase in on 2011 figures and defying national
price reflected the healthy demand trends, where passenger arrivals were
Property prices held fairly steady across down 5% as Spanish residents curtailed
for quality short-term rentals across
all of Mallorca’s regions in 2012. In the travel in the wake of rising sales taxes.
the island, particularly in the summer
island’s capital of Palma de Mallorca, Mallorca’s luxury status as a major
months.
average sales prices started the year at destination for international travellers
Overall, Mallorca rental properties
€2,101 per square metre and ended 2012 protected the island’s tourism sector
ended Q4 2012 with an average price of
on €1,955 per square metre. Amongst and helped contribute to the strong
€7.55 per square metre.
Lucas Fox clientele, sea front properties, local economy.
country houses and country estates
Short-term rental demand is indicated,
across all areas of the island dominated
in part, by levels of airport arrivals to Foreign Investment Interest
interest. High-end buyers looked for
Palma de Mallorca airport. By the end of
the best deals in key areas of the island,
2012, over 22.6 million passengers had
particularly in Palma de Mallorca’s Old Throughout 2012, Mallorca properties
arrived at Palma de Mallorca airport
saw an increased level of interest
amongst visitors to the Lucas Fox
website. In 2012, .the majority of
Mallorca buyers came from the
Scandinavian countries, Germany, UK,
Switzerland, The Netherlands, France,
and Russia. This trend is expected to
continue into 2013, as economically
strong countries with high levels of
wealth look to Mallorca and Ibiza when
buying properties.
Mallorca Average Property Sales Prices Q3 2010 – Q2 2012 / Source: Idealista.com
International Visitors to Lucas Fox
Mallorca Average Rental Sales Prices Q1 2011 – Q4 2012 webpages for Ibiza property 2012
Source: Fotocasa.es, Idealista.com Source: Google Analytics for Lucas Fox website
MALLORCA REAL ESTATE MARKET Q3 & Q4 2012 www.lucasfox.com

3. Lucas Fox Analysis and Predictions for 2013 ABOUT THE LUCAS FOX
MARKET REPORTS
“World-class golf courses, leisure activities like yachting and boating, and You can keep receiving up-to-date
ample opportunities to soak up the island’s natural wilderness and seafront market reports from the Lucas
vistas are making Mallorca top of the list for many international luxury
Fox International Properties team.
property buyers who want to combine lifestyle demands with long-term
property values,” says Lucas Fox Sales Director, Rafael Calparsoro. Subscribe to future updates at our
website or bookmark our blog for
“Sea front villas and apartments in the Old Town area of Palma de Mallorca the latest news on the Barcelona real
will continue to see high demand as we enter into 2013,” says Rafael estate market.
Calparsoro, Lucas Fox Director of Sales for Mallorca. “2012 saw an increase
in interest in sea front properties in classic developments across the island,
including in Bendinat, Sol de Mallorca and Costa de los Pinos and we expect
some brisk trading in these areas as high-end buyers are keeping an eye on
available property as it comes to market.
“2013 has every indication of being a better year for the Mallorca property
market”, Mr Calparsoro says. “While 2012 definitely saw Mallorca reach a
new level of recognition amongst international luxury property investors, we
expect 2013 to maintain this status and global reputation as word spreads Alex Vaughan Rafael Calpalsoro
even further amongst new buyers who will be keen to share their experiences Director Lucas Fox Sales Director
Lucas Fox Mallorca
of acquiring a property in this most beautiful and well-preserved of luxury
holiday destinations.”
WWW.LUCASFOX.COM
COUNTRY HOUSE HOUSE / VILLA HOUSE / VILLA
LOCATION: LOCATION: LOCATION:
SPAIN » BARCELONA » CENTRAL MALLORCA SPAIN »MALLORCA » PALMA SPAIN » MALLORCA » EAST MALLORCA
LFMA434 PRICE ON REQUEST LFMA421 450.000€ LFMA426 5.900.000€
COUNTRY HOUSE COUNTRY HOUSE
LOCATION: LOCATION:
SPAIN » MALLORCA » NORTH MALLORCA SPAIN »MALLORCA » PALMA
LFMA370 2.200.000€ LFMA374 1.950.000€
MALLORCA REAL ESTATE MARKET Q3 & Q4 2012 www.lucasfox.com