Strong tourism numbers and significant infrastructure improvements have allowed the property market to prosper over the past 14 months, with growth continuing into 2018.

Having undergone an impressive transformation over the past five years, the Balearics prime market is appealing to an increasingly wider audience of international buyers, with investors taking advantage of the recent tourism influx and continued growth.

The island’s tourism boom has allowed for growth and development in all sectors, with legislative and infrastructure improvements supporting the already well rooted residential property market.

According to recent figures from precioviviendas.com, property values increased by some 4.32% in Q3 which placed Mallorca as the only area in Spain where values increased in excess of 4%. It has also been the leading region in property price growth for the last three quarters, with Q1 and Q2 showing strong growth at 5.12% and 5.74% respectively.

A key factor which has allowed for a strong property market over the years is that Mallorca has never had an issue with over supply, allowing values to remain resilient even in the most testing of times.

Strong economic fundamentals, such as an increase in disposable income, higher employment, and a boost in consumer confidence, have made way for investment in infrastructure, technology and businesses, ultimately resulting in higher property values.

An increase in direct investment in hotels and in schemes such as the €50 million investment in Palma Marina is also expected to do a great deal to draw wealthy yacht owners and guests to explore Mallorca and encourage local spending.

The largest island in the Balearics attracts a diverse range of buyers and visitors, with a significant number of Germans, Swiss, Austrians, Brits – despite Brexit – and Scandinavians purchasing apartments and villas in Mallorca. All of this teamed with a low crime rate and the islands staggering beauty have led to it to be one of the top destinations in the world to live and own a property.

Annual growth rates in 2018 are expected to sit at around 10%, with property values maintaining due to the continued demand from buyers of multi nationalities.

“Demand for prime property in Mallorca is only increasing and the supply is diminishing daily,” says Richard Heaney from Elan Palmer Estate Agents. “Now is as good a time to buy as any.”

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Written by Laura Henderson, Managing Editor of Abode2