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Balearic spotlight: Insights in partnership with Tecnitasa

We’ve teamed up with Tecnitasa to provide an in-depth look into the Balearic property market and key trends shaping it.

As one of the most esteemed mortgage intermediaries in the Balearics, we’ve observed significant increases in transactions and property values over recent years. This has prompted inquiries from senior management in Spanish banks, private lenders, and international banks. They seek our insights on market conditions, business levels, client profiles, and demand trends to inform their strategic decisions on lending criteria and asset allocation.

Insights from our partnership with Tecnitasa

Tecnitasa, a valuation company regulated by the Bank of Spain, offers their perspective on the market dynamics.

Spotlight on Ibiza

When Covid-19 struck in early 2020, many developers and agents in Ibiza were uncertain about the market’s future. By mid-2020, however, demand soared, and Ibiza has since become a property hotspot. Limited supply has driven prices up, making the island more desirable than ever.

Mallorca market trends

Mallorca has also seen a rise in demand, though it doesn’t face the same supply constraints as Ibiza. Property prices in Mallorca are at an all-time high, fueled by the pandemic’s impact on lifestyle choices. Buyers seek a better quality of life in well-connected locations, and Mallorca fits the bill perfectly.

What valuers are observing

Data from Tecnitasa reveals a significant increase in property valuations over €2.5 million in both Ibiza and Mallorca in 2021 compared to 2020.

Luis Diaz from Tecnitasa comments, “Our study of the market changes from 2020 to 2021 shows a substantial rise in high-value property valuations. The tax generated from these sales has increased by 55%, indicating robust market activity.”

In 2020, Tecnitasa conducted 149 valuations of luxury properties, marking a 70% increase from the previous year. The 2nd and 4th quarters saw the highest real estate movements. The Balearic market is highly valued not just for its quality of life but also as a secure investment location.

Increasing demand at Mortgage Direct

At Mortgage Direct, we’ve experienced a similar surge in demand from traditional clients seeking financing for their first or second homes, as well as investors and developers. This trend underscores the importance of providing tailored solutions for our diverse clientele.

For more detailed information on the Balearic property market and to explore your mortgage options, please contact us.

Article in collaboration with Tecnitasa

Howard SteelMD Premier Mortgage Consultant

Fluent in Spanish and English, and holding UK and Spanish regulatory qualifications for mortgage advice. He spent several years at a large Spanish bank. He now advises MD Premier's HNW & UHNW (Ultra High Net Worth) clients. Expert in large transactions requiring bespoke solutions for complex borrower structures.

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Mortgage Direct, S.L. is a company registered in the Registro de Intermediarios de Crédito Inmobiliario del BdE with the nº D108.

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