Predator Blog · March 17, 2023

Luxury boom in the southwest: Why a property investment here is still worthwhile

A place where you can enjoy life to the fullest – provided you have enough money in the bank to afford a chic villa. Because here, the motto is: “Go Big or Go Home” – and who would want to go home when you’re in paradise?

Mallorca is full of hotspots and unique living and lifestyle experiences, from the picturesque north coast to the vibrant south. I’ve made it my mission to go through and analyse the island’s different areas for you. Today we’re diving into the southwest, a region that has had a magnetic effect on the property market since the early 2000s. Why prices are exploding here and what exactly you can expect for your investment in this enticing region, we’ll now take a look at together.

For decades, the southwest of the island has been regarded as a magnet for property buyers looking for luxury homes. As early as 1980, the first exclusive residential developments and villas were built near the impressive harbours of Portals Nous and Port Andratx, marking a significant milestone in the development of the property market in this region. Today, the southwest continues to be extremely popular with Germans, Britons, Swedes, as well as Poles and Ukrainians. The advantages of this area are hard to beat in Europe:

Excellent infrastructure: One of the main reasons to reside in the southwest is the outstanding infrastructure. The transport links are superbly developed and the range of services impresses with its high quality. Everything your heart desires is in the immediate vicinity. In addition, exclusive marinas such as Puerto Portals and Port Adriano convey the feeling of sailing in the fast lane of life.

Idyllic places and impressive views, close to the city. In the picturesque southwest of the island, some of the most charming places await you, with breathtaking views of the sea and mountains. The great thing about it: you’re just a stone’s throw from the city of Palma and can therefore enjoy the best of both worlds to the fullest. Mallorca’s multifaceted and varied landscapes are among its main attractions, and the southwest is no exception. The impressive interplay of mountains and coastline delights visitors and locals alike.

Impressive golf courses, beaches and activities. If you’re passionate golfers, you’ll be pleased to know that the southwest is home to some of the island’s best courses. A total of six top-class facilities stretch from Bendinat to Andratx. But that’s far from all: the region also captivates with dream beaches, ranging from picturesque coves to extensive stretches of coastline, offering something for every taste. Water sports enthusiasts also get their money’s worth here and can choose from a wide variety of activities. And for tennis fans, the Mallorca Country Club has recently opened its doors, representing another highlight for sports enthusiasts in this area.

Communities and schools with an international focus. Since 1990, Calvià has been home to communities with a wide range of cultural backgrounds. Portals and Bendinat remain very popular to this day and have recorded an impressive 200% price increase over the past 20 years. The area offers internationally oriented educational institutions such as Agora, Kings College or Balears International College, which provide first-class educational opportunities. They enable parents and children to build and maintain communities and networks in one of Europe’s hotspot regions.

Market prices

In Mallorca’s southwest, property prices have risen steadily over the past 20 years. Although the market saw a slight stagnation in 2022, many agents and investors expect that this trend will not come to a halt for the time being. Demand remains high and supply is increasingly dwindling, which stabilises prices. E&V reports that supply has fallen by around 22% since the record year 2021.

Demand exceeds supply, and attractive or new-build projects are still selling quickly. The majority of prospective buyers in the southwest are looking for luxury villas or modern apartments in the immediate vicinity of the sea or water, while still wanting to be within half an hour of Palma. In sought-after locations such as Port Andratx, asking prices for villas start at 4 to 5 million euros, with price per square metre around 10,000 euros. A villa with direct sea views and in immaculate condition can cost up to 11 or 12 million euros, while prime villas on the first sea line can reach up to 19 million euros, as such properties are hardly to be found on the market anymore.

Anyone who isn’t looking for a luxury property but still prefers a detached house with a pool should expect at least 1.5 to 2 million euros. Even for an appealing small apartment, the entry-level price is around 500,000 euros.

In Palma’s neighbouring areas such as Bendinat, Portals and Costa d’en Blanes, the average prices per square metre are around 8,500 euros. In Santa Ponsa, the average prices per square metre rose last year from around 6,000 euros to 7,500 euros. Further inland, in municipalities such as Andratx and Calvià, the average prices are somewhat lower, at around 4,500 euros per square metre.

Buyers from Germany, the United Kingdom, Spain and Sweden are showing strong interest in the property market in Mallorca’s southwest and often decide quickly to purchase a new home on the island. Financing is generally considered—if at all—only for tax reasons.

Top locations in the southwest

Now that we’ve gained an overview of the southwest’s general characteristics, I’d like to take a more detailed look at the most fascinating areas. The southwest is by no means homogeneous; there are diverse districts, each distinguished by its own particular features:

Andratx: Nestled between mountains, Andratx with its small, famous yacht harbour is a true treasure. It’s an ideal starting point for hikes in the Tramuntana mountains, and nearby beaches are best explored by boat. The harbour also provides a wonderful backdrop for a delicious meal or a romantic sunset.

Camp de Mar: A quiet place that invites you to a relaxing and active holiday. There are a number of first-class hotels on a bay surrounded by Aleppo pines. Here you can go trekking, mountain biking or take rental-car tours. Golf lovers will also get their money’s worth thanks to the Camp de Mar Golf Course. The wide sandy beach Platja de ses Dones is the perfect place to unwind.

Palmanova: Located about 15 kilometres west of Palma directly by the sea, Palmanova is popular in summer with numerous British tourists. This area has the beaches Platja des Carregador and Platja Son Maties, which are connected by a long promenade and are well suited for children.

Paguera (or Peguera): is among the top addresses for beach holidays. Here you’ll find three beaches with high standards, fine sand and comfort. Along the beach promenade there are numerous bars, boutiques and pubs for a stroll or a good Spanish wine. The hilly surroundings are dotted with pine forests, making it ideal for relaxed walks or short hikes.

Port Adriano: The bay of Porto Adriano with its luxury harbour impresses with its uniquely favourable location. The area is surrounded by beautiful nature, and a trip to the nearby Malgrat Islands is definitely worthwhile. Thanks to the many luxury restaurants, boutiques and galleries, Puerto Adriano has become the ideal meeting point to unwind.

Portals Nous: Portals Nous is a cosy village west of Palma. It is located just twelve kilometres from the capital and only a short walk from the exclusive marina Puerto Portals. That’s why it’s not only popular with holidaymakers, but also highly sought after as a place to live. British second-home owners in particular love the community here, which continues to thrive even in winter.

Port Andratx: The harbour of Andratx developed from a small fishing village into an upscale spot for high society. The deep bay surrounded by mountains is what makes Puerto d’Andratx so popular and unique. Alongside small fish markets, there are also fine boutiques, restaurants, cafés, galleries, jewellers, exclusive delicatessen shops and one real estate agency after another.

Santa Ponça: Santa Ponça is surrounded by fine sandy coves and bizarre rock formations. German tourists in particular feel at home in the historic bay with its beautiful seaside promenade. It features a marina, a golf course, shopping centres and clubs.

Sant Elm: Surrounded by a mountainous landscape lies the small village with its 180 m long sandy beach. In front of it are the islands Es Pantaleu and Sa Dragonera. The latter has since become a nature reserve, home not only to lizards but also to Bonelli’s eagles and Audouin’s gulls. The romantic mountain landscape invites hikes, e.g. to the former monastery La Trapa or to Cala Embasset. The Dragon Island Sa Dragonera, with its unusual shape, is also a tourist attraction.

I hope these explanations have provided a deeper insight into the southwestern region. If you have any additions or suggestions, don’t hesitate to contact us!