Index. Mallorca. Menorca & Ibiza. Engel & Völkers

Transcription

1 Market Report Balearic Islands 2007

2 Index Mallorca Introduction...03/04 Palma Centre Palma Outskirts South West...07/08 West Inland North / Pollensa & Puerto Pollensa North / Alcudia & Puerto Alcudia North East East / South East Llucmajor Menorca & Ibiza Introduction Menorca Ibiza...18/19 Engel & Völkers Shops Balearic Islands Company Background Imprint...22

3 Introduction Mallorca Mallorca has become established as one of the most chic locations to own a quality holiday home in The Mediterranean. The island is only a two hour flight away from key cities in Europe with hundreds of direct flights into Palma s International Airport year round. It has a cosmopolitan atmosphere, providing high standards of living at all levels for housing, schools, health, culture, sports and entertainment. These factors, combined with its excellent climate (averaging 300 sunshine days per year), offer a real paradise in the midst of The Mediterranean where the main buyers are German, British and Spanish. In 2006, the island received approximately 9 million visitors making it one of the most successful destinations in the Mediterranean. Investment in Infrastructure Impacts Property Values Over the past three years some of the largest investment has been on Mallorca where a new motorway and new highways have been built to link Palma within easy access of just about any point on the island. This now means that drive times have been slashed by half or more and as a result areas that were once overlooked because of difficult access have become more attractive and this has opened up to the property market with some areas reporting up to 10% increase in sales as a result. In addition, new train routes and soon to open a new underground service serving the surrounding areas of Palma will further improve traffic flow around the city. Market Values The last five years have witnessed a property boom on the island. Recent research by UBS Bank indicates that average house prices in Spain have been steadily rising since 1995 achieving an average of 2,200 per m 2 in In Mallorca this average is more likely to be double, if not more in some areas. Research by Banco España ranks the Balearic Islands region fifth in Spain for increases in property values, which in 2005/6 averaged a 12% increase and in 2006 prices continued to rise at the same rate. Financing Twenty years ago the majority of homebuyers were cash buyers. Today, approximately 85% finance the purchase with a mortgage. In the past three years money has been cheap to borrow as interest rates in Spain have been lower (+2.210% in 2005 according to Euribor rates) than in the main feeder markets. In the last 12 months the Euribor rates has increased by 49% to 3.857%. Bearing in mind that financial institutions are currently offering from % above the Euribor rate on a variable interest rate mortgage, this starts to have an impact. However, in 2007/8 banks are predicting only a slight increase in interest rates. Financial Institutions Compete for Investors Over the past 5 years, Spanish banks have made it increasingly attractive for outside European investors to maintain their capital whilst taking advantage of the financial offers available to them. This is based generally on 70% financing of value of the property over a 15 year period which, according to age, is also flexible, therefore providing a longer mortgage repayment period. Recently, fierce competition between the financial institutions on Mallorca has created even better conditions for European buyers. Some financial institutions are now offering 80% finance over a year period, albeit with a slightly higher interest rate, this type of deal makes a good investment option due to the steady increase in property prices on the island. British clients also have the added option of buying here with financing from a UK financial institution. New Tax Legislation for Non Spanish Residents Capital Gains The Spanish Tax office has introduced new tax laws for non Spanish residents. Capital Gains Tax (CGT) will be reduced from 35% (in 2006) to 18% from 2007 onwards. CGT is payable on the profits made from selling real estate in Spain. The profit is the difference between the purchase and sales price after taxes and costs related to the sale and purchase have been subtracted. Buyers Tax Retentions Tax retentions for buyers on the sale of property sold by non-residents has now been reduced from 5% to 3%. The buyer of a property, which was sold by a non-resident vendor, must make this retention tax of 3% from the total sales price of the property because of the vendor s own Capital Gains Tax liabilty. This retention tax is paid directly to the Spanish Tax Office. Non resident vendors of Spanish property should also be aware that they may have residual CGT liability under tax regulations applicable in their own country of residence. This liability will be subject to any relevant double taxation treaty between Spain and their own resident country.

4 Conclusion The good news for investors is that Mallorca is an established and safe destination. Property prices here have never dropped and continue to increase, even though it is unlikely that we will see the sharp increases of the last five years. However, there are still areas around the island which provide good potential and financing of property more attractive than ever before. The demand for good plots of land is also a trend throughout the island. Finally, Mallorca s infrastructure is unrivalled in the Mediterranean and the continued investment at local, national and international level will ensure its future. Engel & Völkers This market report is based on the findings of 28 Engel &Völkers shops throughout three of the four Balearic Islands with 25 shops on Mallorca, two on Ibiza and one on Menorca. Our objective is to give as accurate information as possible. However, the reader must bear in mind the range of property available in each category, which varies from historic to new build. Another key factor is location, views and proximity to the sea where applicable, all of which affect the overall property values. All plot prices quoted in this report refer to the cost of urban land. The Rental Market Many clients buy properties with a view to rent them out for part of year or on a long term basis. All rental incomes must be declared to the local government and only villas/fincas can apply for a holiday rental let short term licence. Potential buyers for buy to let opportunities must therefore bear in mind that rentals should be long term. As price increases have risen dramatically in the past five years, so have rental yields depending on location and area. This document outlines average potential rental yields on a long term rental basis. Highways

5 Palma Central 15 Min. In the past 15 years this most elegant Mediterranean city has really come into its own and is now being heralded as the new Barcelona. Against the backdrop of the city s rich history and ancient old town, it offers a huge range of restaurants, cafes, bars, nightlife, entertainment, shopping, boutique hotels, art galleries and museums. In the past 10 years millions of euros have been spent on the restoration of the facades around the old town and the result is a vibrant, beautiful city with plenty to offer the visitor all year round. Palma is easy to get around and everything is within walking distance. Ideal for Europe s commuters Palma International Airport has become one of the most popular routes for low cost airlines. This easy access has been a key factor in its booming real estate business together with the proximity of the airport to the city centre. Clients in Palma are looking for a sophisticated but relaxed environment to live and will often commute to the island for weekends. The majority of property available in Palma is made up of apartments and the most popular are attics or penthouses. Clients want character buildings with original features, high ceilings, large windows etc Converted palacios are particularly in demand. Going up Prices range from approximately 250,000 to 600,000 for a 1 or 2 bedroom flat. Palma s attraction is reflected in the steady price increases which have increased by an average of approximately 100% in the last five years. In 2006 prices have increased by a further 13-18% and the indicators are that prices will achieve Madrid or Barcelona price levels in three to four years. The Buyer The main buyers are British, which account for approximately 30% of the market and make up over 26% of the sales, followed by Spanish, German and Scandinavian clients. The most requested areas are Palma old town, the market area of Santa Catalina, which has now converted into a great area for restaurants, and the harbour area of Portixol. This area extends to the neighbouring areas of El Molinar and Cuidad Jardin. Recently a smart new promenade has been constructed so that people can walk or cycle right along the seafront featuring a variety of restaurants and cafes. Rental Market In Palma, rental yields have increased considerably alongside property values and this is probably one of the most successful areas on the island for buy to let investments as the rental market is year round in Palma. Over approximately 22% of Engel & Völkers existing clients in this area have bought specifically to let. Demand is mainly for apartments and town houses where owners can expect a rental yield of approximately 2,800 per month for a town house and 1,600 per month for an apartment. Tips for Investors in 2007 According to the Engel & Völkers local shop, the areas around the Paseo Maritimo, Terreno, Santa Catalina and the old gypsy quarter of Sa Gerreria still have potential for the new investor. Investing in historical developments and buildings with original character also pays dividends and are much in demand. Price Increases Rental Yield* Type Beds m high low Apartment with views , % 18% 1,600 1,200 Apartment no views ,000 90% 16.5% 1,200 1,000 Townhouse ,750,000 75% 13.5% 2,800 2,300 * Price per month

6 15/20 Min. Palma Outskirts In the last five years Palma outskirts have developed and extended alongside the new motorway system and in particular the main motorway of the Via Cintura, which circumnavigates Palma s city centre. These areas include the bordering areas of Son Vida, Son Rapinya, La Vileta and the country villages of Puigpunyent, Esporles and Establiments, all of which are approximately 15 minutes drive away from Palma s city centre. Last year the population of Mallorca went over a million. The majority of inhabitants are concentrated around Palma. Excellent Access Here, the buyer has easy access to all the main highways of the island, the beaches, the airport, the city centre of Palma, main services such as hospitals, clinics and schools. Many areas will have sea views of the Bay of Palma or of the mountains in the villages. The market is focused on villas, chalets, country house estates and plots of land. There is a huge price range from the exclusive mansions of Son Vida its golf courses and top international hotels, to a small town house in a country village such as Puigpunyent. Ideal for Families The average client spend demonstrates that there is a switch from holiday home investments to first home investments for families who want to enjoy the Mediterranean lifestyle. Property Values Son Vida Son Vida is synonymous with luxury property for the most discerning clientele. The area is regarded as one of the most exclusive on the island with the emphasis on security. The average price range can be from 700,000 for a 2 bedroom apartment to 5 million for 6 bedroom luxury villa with sea views/views across the golf course. Over the past 12 months the prices for houses have increased by 10%. Palma Outskirts prices range from approximately 390,000 for a 2 bed apartment to over 1 million for a country house. The local Engel & Völkers shop reports price increases of 7% in the past 12 months in these areas highlighting new road developments as a major factor improving access to neighbouring villages. The Buyer The average client spend 2-5 million for a villa and for a country house it can be anything bet ween 900,000 to 4 million. The average townhouse sells for around 500,000. Apartments are around the 750,000 mark and plots can range from 500,000 to 1 million. The main buyers are Spanish 25%, German 20% and British 20%. In these areas the Germans tend to be the big buyers and account for just over 41% of total sales. Tips for Investors in 2007 Even though Son Vida appears at the top of the market scale it is still worth investing here because of the sheer capital growth of property, which has increased up to 150% in the last 5 years. The Valldemossa road provides better access to villages such as Esporles, which could be a very interesting area for investors. Palma Outskirds Son Vida Type Villa with views 4 Beds / 350 m 2 Villa no views Apartment with views 2 Beds / 100 m 2 Apartment no views Countryhouse 3 Beds / 350 m 2 Townhouse 3 Beds / 180 m 2 Plot Price per m 2 Price Increases Rental Yield* Price Increases Rental Yield* high low high low 1,100,000 50% 7% 4,200 3,150 2,500,000 60% 10% 9,100 5, ,000 40% 7% 3,850 2,450 1,900,000 50% 10% 4,900 3, ,000 50% 7% 1, ,000 60% 10% 2,000 1, ,000 35% 7% 1, ,000 60% 10% 1,500 1,000 1,100, % 7% 3,850 2, , % 20% 1,980 1, % 5% % 20% * Price per month

7 The South West 20/35 Min. Mallorca s popular south west region is still highly fashionable and blessed with a mini eco climate, which means excellent weather all year round even in winter when the Traumuntana Mountains protects the area from northerly winds. This region extends throughout the municipality of Calvia with its six resorts down to Puerto Andratx where many rich and famous have magnificent villas. The region s importance is reflected in the millions of euros, which has been spent by the local and national government in recent years to improve the road infrastructure to create fast access to Palma. These improvements have just been completed and will most certainly further impact prices in the region. The Buyer The main buyers in this area are British (approximately 40%), German (approximately 39%) and Spanish (approximately 20%) followed by the Scandinavians and the emerging Russian/eastern European market. Due to the success of low cost airlines into Palma the average time an owner spends in their property has increased by approximately 30% representing 3-4 months a year. Many owners now regularly commute for long weekends. This trend is reflected in the wish list of the potential buyer who is now demanding central heating as a standard feature. In addition, to the latest date security systems or gated communities for lock up and leave properties. This factor has extended the season of the established tourist resorts effectively creating new life in these areas. Property Values Prices have increased in the past 5 years, so has the average spend, which is now running at approximately 750,000 euros. The bigger spenders tend to be the Germans who spend an average of just under a million euros. The majority of demand is focused on apartments and villas with prices over last year running at an average of 10-15% and in some cases as high as 20%, particularly for plots of land, which have recently been in great demand. Rental Market Approximately 10-15% of all clients will rent their properties and they can expect good rental yields in this area year round which can average from euros per sq metre, per month, depending on the property and the facilities. Demand is high for good quality property and it is imperative that any rental property is of a high quality with heating and air conditioning and includes features such as a swimming pool. However, longer lets are favoured as there is still a great deal of controversy over short lets and the legal implications with the local government. Portals Portals covers one of the most sought after areas in this region and is ideal for people who want to enjoy a great holiday on the island in a true multi-national and cosmopolitan atmosphere at any time of year. It offers a choice of top international hotels, a variety of restaurants, bars and nightlife, much of which is concentrated around the ever chic Puerto Portals. Other facilities include golf courses, marinas, international schools, shopping etc... Portals Santa Ponsa Type Villa with views 4 Beds / 350 m 2 Villa no views Apartment with views 2 Beds / 100 m 2 Apartment no views Countryhouse 3 Beds / 350 m 2 Townhouse 3 Beds / 180 m 2 Plot Price per m 2 Price Increases Rental Yield* Price Increases Rental Yield* high low high low 2,000,000 38% 9% 10,000 6,000 1,400,000 n/a 10% 5,250 4,200 1,500,000 n/a 0% 4,900 3,500 1,100,000 n/a 10% 4,200 3, ,000 38% 9% 2,500 1, ,000 n/a 20% 1,800 1, ,000 n/a 0% 1,500 1, ,000 n/a 20% 1, ,000 n/a 10% 6,300 2, ,000 n/a 9% 2,100 1, ,000 n/a 15% 2,350 1, % 15% n/a 20% * Price per month

8 The most popular areas tend to be Bendinat, Portals and Costa den Blanes and investors can still look for good returns in the areas of Old Bendinat, any frontline apartments particularly in Portals, Costa den Blanes and Sol de Mallorca. Santa Ponsa This resort has grown up around one of the most beautiful bays on the island and in recent years, major investment has been made to upgrade the promenade area around the coastline. A few minutes from the sea are three top golf courses and the Santa Ponsa Country Club, which is a good meeting point for visitors and local residents. Puerto Adriano will undergo a major extension programme this year adding 80 moorings and ensuring that larger vessels can get into the Port. In addition, a new shopping and restaurant area is being developed alongside similar to Puerto Portals. The areas of Son Ferrer and the mountain area of Son Font are still good opportunities for investors in Paguera Capdella Cala Fornells This area stretches from the coastal resort of Paguera up to the mountain village of Capdella. Cala Fornells is currently much in demand because of the wonderful sea views and partial direct sea access. Clients are particularly attracted to the Aldea development at Cala Fornells, which was designed by the Russian architect, Pedro Otzoup who has many examples of his work along this coastline. The new motorway infrastructure means that there are now four access routes to Paguera which is seen as a benefit by prospective clients. This is a relatively new Engel & Völkers shop location and the reasonable pricing structure, particularly for apartments, in this area demonstrates the potential growth opportunities. Paguera is especially attractive for first time second home buyers who want a seaside investment at an economical entrance price. Andratx and Puerto Andratx This is regarded as one of the most valuable areas on Mallorca and is certainly the most fashionable. It continues to attract international personalities, politicians and artists. Andratx is also attractive because it is a year round resort area and although quieter in the winter months, it still retains its life and charm. There has been a great deal of investment recently in the infrastructure of this resort improving the roads and linking the port and Andratx town via a new fast motorway. The local Engel & Völkers shop estimates that the new motorway system will increase sales by approximately 10%. To put this area s strategic importance in terms of revenue, the Puerto Andratx shop turns over the highest volume of sales in the entire Engel & Völkers organisation of over 200 shops worldwide. In the past few years it has become increasingly difficult to find plots in good locations so now older properties in good locations are now being reviewed to refurbish or knock down completely and start again. Even though the average prices are high there are still some areas which are still relatively well priced including Cala Llamp, Cala Moragues and San Elmo. Paguera Puerto Andratx / Andratx Type Villa with views 4 Beds / 350 m 2 Villa no views Apartment with views 2 Beds / 100 m 2 Apartment no views Countryhouse 3 Beds / 350 m 2 Townhouse 3 Beds / 180 m 2 Plot Price per m 2 Price Increases Rental Yield* Price Increases Rental Yield* high low high low 1,650,000 n/a n/a 4,900 4,200 2,500,000 50% 9% 6,000 4, ,000 n/a n/a 4,200 3,500 1,500,000 35% n/a 4,900 3, ,000 n/a 12% 1,200 1, ,000 50% 13% 1,400 1, ,000 n/a 12% ,000 35% n/a 1, ,600,000 n/a 9% 4,200 3,500 1,750,000 60% 6% 4,200 3,000 n/a n/a n/a 1,900 1, ,000 n/a n/a 1,800 1, n/a n/a % 20% * Price per month

9 West 35 Min. The stunning wild and rugged western coastline of Mallorca encompasses some of the most famous villages on the island including Deia and Valldemossa where many artists and international celebrities have bought homes. The villages of Banyalbufar and Estellencs feature traditional Mallorcan properties (fincas) often with breathtaking views over the sea. Inland, villages such as picturesque Fornalutx are popular with clients who love the irresistible combination of the stunning mountain landscape, citrus groves and the traditional Mediterranean lifestyle. In 1997 the Sóller tunnel opened which overnight meant easy access to the historic town of Sóller where its church tower and roof tops are set against the dramatic mountain range and surrounded by orange and lemon groves. Stylish boutique hotels have opened up in this historic town close to the popular town square alongside new restaurants and cafes. A few minutes tram ride away, the Port of Sóller is currently undergoing a major new refurbishment programme where in the past four years more boutique, and larger international hotels, have opened up featuring some excellent restaurants. This area is fast becoming more cosmopolitan and although obviously quieter in winter, both the town and port enjoy a lively atmosphere. The Buyer The British dominate the market in these areas accounting for approximately 45% of the market, with 30% Germans, 17% Spanish and the rest of the market divided up between Scandinavians, Belgians, Swiss and Irish. These clients tend to spend a lot longer in their properties than in other areas - between 3-6 months. The improved access to Palma and the airport via the new motorways and Soller tunnel, and more recently the new dual carriage between Palma and Esporles, has really boosted sales. Property Values Some of the most dramatic price increases have been in this area and this is mainly due to the vastly improved infrastructure. In the past five years prices, on average, have increased by approximately 80% plus. In the past year price increases have still been on the rise at around 20% for apartments and 18% for villas reflecting the continued demand. Rentals In this area approximately 20-25% of all clients let out their properties which are popular with visitors who enjoy hiking especially in almond blossom time, bird watching and being part of the traditional fiestas. Rental yields are good particularly for country houses and villas that would expect to fetch approximately 3,000-5,000 per month. Tips for Investors in 2007 For prospective buyers seeking the authentic Mediterranean lifestyle, explore the villages such as Banyalbufar and Estellencs which still represent good value and offer more property for the money. For people looking for a project, there are still some fabulous historic houses which occasionally come onto the market in this region. Areas which still have a great deal of potential for the investor include Puerto Soller, Lluc Alcari (just outside Deia) and Valldemossa, where the new dual carriageway link to Palma will affect property prices. Price Increases Rental Yield* Type Beds m high low Villa with views ,800,000 82% 18% 5,000 3,000 Villa no views ,950,000 n/a 14% 4,200 2,600 Apartment with views ,000 75% 20% Apartment no views ,000 n/a 14% Country house ,000 80% 16% 3,500 2,000 Townhouse ,000 n/a 13% 1, Plot Price per m % 18% * Price per month

10 10/40 Min. Mallorca Inland Clients wishing to embrace the traditional rural Mallorcan life tend to look to the countryside, which is typified by wonderful views of the Traumuntana Mountain range, fields of almond and carob trees, terraces of olive trees, sheep grazing and ancient stone walls. This is the heart of Mallorca where the annual fiestas are enjoyed and actively promoted by the local town halls to retain and encourage village life. The new motorway system from Palma up to the north of the island has had a marked impact on this area enabling fast and easy access to villages. For example, villages such as Llubi, Selva, Algaida and Montuiri, have all opened up as a result of the new motorway. In addition, the excellent train service from Palma through to Inca has now been extended to Sa Pobla, once again improving access. The Buyer Germans (40%) and British (30%) tend to dominate in this area and many clients become permanent residents. The majority of clients are therefore looking for a substantial property and inland they will get more land and property for their money than on the coast. The most requested villages tend to be Santa Maria, which is so close to Palma (approximately 10 minutes drive) and the picturesque village of Alaro. As prices increase in these villages, clients search in others, which still offer good value for money such as Llubi, Montuiri and Algaida. Location and countryside views being the most important factors. In the main, clients are looking for fincas, Mediterranean style country villas or town houses. Many will also consider buying plots of land to build to their own specification or actively look for a property to renovate. Some of the greatest increases recently have been on plots of land. In order to construct a property of 300 sq metres on land which is designated rustic, the plot size has to be sq metres and obviously these plots are increasingly difficult to find. Property Values In the last five years prices have substantially increased (around 30-40%) and last year prices continued to rise around 10%. The average spend is approximately Plots are much in demand, as much as 30% of clients are looking for land and this is reflected in the increasing prices. Plots sold last year were in the region of 400,000. Rental Market As so many residents intend to live full time or dedicate a great deal of time to their property, only a small percentage (approximately 5%) are interesting in renting. However, there are rental opportunities for clients who own a finca or villa, which are the most requested properties for rent. The majority of rental agreements are on a long term basis. Tip for Investor in 2007 Last year, Engel & Volkers opened a new shop in Inca, which is famous for its leather making industry and weekly market. The town itself has witnessed quite a transformation in the past couple of years and local investment in a new market area, pedestrianised zones and general infrastructure are all contributing to its development. The new motorway link means that villages close to the motorway have instantly become more accessible and therefore in demand. Investors looking for good properties and traditional country village life should explore villages such as Mancor de Valle, Costix, Llubi, Selva, Moscari and Montuiri. Price Increases Rental Yield* Type Beds m high low Villa with views** ,000,000 30% 10% 6,000 3,850 Villa no views** ,500,000 20% 5% 4,200 2,500 Apartment with views ,000 30% 10% Apartment no views ,000 30% 10% Country house ,000 35% 10% 4,200 2,500 Townhouse ,000 35% 10% 1, Plot Price per m % 15% * Price per month ** Country style villa 10

11 Pollensa & Puerto Pollensa 35/40 Generations of visitors have been enjoying the delights of Pollensa and Puerto Pollensa for many years. The first hotel to open on the island in 1907 still stands today in Pollensa s town square, where there is life all year round and particularly on Sundays when the market is in full swing. This area has a rich history, culture and architecture of its own, which is celebrated annually with its music festival held in the Cloisters of the Santo Domingo church and the famous traditional Moors & Christians fiesta held every August. The surrounding area includes Cala San Vicente, and villages down to Campanet. Puerto Pollensa is a popular family resort with its famous pinewalk promenade and beautiful views across the Bay and to the mountains. It has excellent sailing and watersports facilities and offers a good social calendar alongside these activities. The Buyer The market is dominated by the British in Puerto Pollensa, which accounts for 80% of the sales, with Germans (15%) and the Spanish (5%). These clients are generally looking for a holiday property and will, on average, spend approximately two weeks of the year there. The most requested properties are apartments, fincas, villas and plots. In Pollensa there is a market shift with the British accounting for approximately 45% of the market, Spanish make up 25%, Germans 18% and the rest is split between Scandinavians, Irish, Belgians, Russians and French. The most requested properties are villas, fincas and plots. Property Values In Puerto Pollensa the price range is from around 200,000 to 2.5 million and increases last year were about 12%. In the area around Pollensa town prices start from approximately to 2.2 million which increased last year by around 12-17% and anything up to 23% for plots. In the town and the port the demand for property has increased considerably since the completion of the new motorway, which has halved the journey time from Palma and this in turn has pushed up prices by approximately 12%. Rental Market The rental market in this area is one of the largest on the island and certainly very lucrative. Approximately 50-70% of all clients are interested in letting their property. In high season rental yields for a top villa can average 4,000 euros per month. However, clients wishing to rent out their property for short term holiday lets must seek the advice of a lawyer as the local government has recently changed legislation and all holiday rentals must be licensed. Tip for Investors in 2007 Property around Campanet represents good value. The new motorway and new rail link to Sa Pobla means much easier access and will open up the market. In the Port area, apartments in the centre are still well priced, villas in Siller and Gommar (just outside the Port) are also worth investigating. Plots in Gommar still represent good value. The beautiful peninsula of Formentor will also experience a revival when its famous Hotel Formentor re-opens after a complete refurbishment. Pollensa Puerto Pollensa 11 Type Villa with views 4 Beds / 350 m 2 Villa no views Apartment with views 2 Beds / 100 m 2 Apartment no views Countryhouse 3 Beds / 350 m 2 Townhouse 3 Beds / 180 m 2 Plot Price per m 2 Price Increases Rental Yield* Price Increases Rental Yield* high low high low 1,600,000 55% 13% 4,500 2,300 1,800,000 50% 12% 4,000 1, ,000 45% 11% 3,800 2,400 1,300,000 50% 12% 2,500 1, ,000 30% 12% ,000 50% 12% 1, ,000 35% 10% ,000 50% 12% ,100,000 60% 19% 2,800 1,500 2,200,000 50% 12% 3,000 1, ,000 65% 17% 1, ,000 50% 9% 1,800 1, % 23% % 12% * Price per month

12 35/40 Min. Alcudia & Puerto Alcudia Over the past 5 years a complete regeneration project has restored Alcudia s historic old town which is now closed to traffic The ancient stone walls of the town now house stylish restaurants, bars, shops and boutique hotels, which have opened up along the main streets. In addition, the local town hall has bought up old buildings and turned then into cultural locations. The town also has a full international cultural calendar centred around its own auditorium. Puerto Alcudia and its marina have been completely remodelled with one of the main features being a smart new promenade. The Alcudia Marina has undergone an extensive refurbishment programme and now features moorings for over 700 yachts with full onsite facilities. The Bay of Alcudia features one of the largest beaches on the island and is a great family location. It is also ideal for nature lovers, walkers and pleasure craft. The beaches around the coastline of Bon Aire feature crystal clear water and clean white sand. The Alcanada Golf Course, part of which borders the coastline with fantastic views, is popular year round. The area also has a good range of hotels and now good access. Towards the end of 2006, the new highway connection of the existing motoway from Palma/Inca to Puerto Alcudia was completed. This has saved approximately minutes off the journey from Palma and is having an impact on property values. Now clients can easily reach their property in approximately 35 minutes from the airport. The Buyer The main market is equally split between the Germans, British and Spanish, who spend an average of 600, ,000. The rest of the market is made of up of Scandinavians, Irish and French. The most requested properties are villas or country fincas. In this area clients visit between 2-4 times per year spending an average of 6 weeks in their property. There is a truly cosmopolitan atmosphere here particularly in the summertime. Property Values The demand generally for all types of property has gone up by 25-35% in the last year. This is due to a combination of factors including easy access, more property for the money and public investment in local infrastructure. Over the past five years prices have increased by approximately 50-60%. According to the local Engel & Volkers representative the average price increase in 2006 was approximately 10%. Rental Market Approximately 50% -70% of clients buy with the intention of renting out the property at some stage. This area is very popular with families and makes an excellent investment for holiday letting if all the paperwork is in place. In high season clients can expect rental yields of up to 3,000 per week for a finca (for licensed holiday lets). Properties with seaviews can increase this rental rate by an estimated 30%. Tip for Investors in 2007 Although prices are still increasing here, property prices are still generally lower than in the Pollensa area. Areas worth investigating that still offer good value include: Lago Menor, Sta. Margarita, Muro, Buger and Campanet. Areas that definitely worth looking at include Bon Aire and moving along the coast to Son Serra de la Marina. Price Increases Rental Yield* Type Beds m high low Villa with views ,500,000 30% 10% 3,500 2,000 Villa no views ,000 30% 10% 2,700 1,200 Apartment with views ,000 30% 10% Apartment no views ,000 35% 10% Country house ,200,000 50% 10% 2,500 1,200 Townhouse ,000 50% 10% 1,700 1,100 Plot Price per m % 10% * Price per month 12

13 North East 40/60 Min. The north east features many areas of outstanding natural beauty against a dramatic backdrop of mountains. The coastline can be wild with large stretches of sandy beaches, isolated bays with crystal clear sea. Throughout the area, you will find typical Mallorcan countryside covered with ancient olive and carob trees, where sheep graze as they have done for centuries. Here is one of the most idyllic spots in Mallorca where you can escape from the strains and stresses of modern day life disconnect and completely relax. Much of this area remains relatively untouched by tourism development and it offers a great outdoor life with 5 golf courses in the area, sailing, scuba diving, deep sea fishing, cycling, horse riding, walking etc The region is varied with picturesque, historic towns such as Arta and Capdepera, which are good for shopping, sight seeing and eating out. There is also a mix of popular holiday resorts such as Cala Ratjada, Cala Bona and Cala Millor along with upmarket, traditionally Spanish, developments of Costa de los Pinos and Port Verd or small fishing ports such as Colonia San Pere, which has great views across the Bay of Alcudia. The new, fast highway from Manacor has cut travelling times to this area by approximately 20 minutes and this has encouraged clients to revisit the north east where they can still buy affordable frontline property. The Buyer The market is currently dominated by German buyers (70%) with an average spend of approximately 250, ,000 mainly for apartments or fincas. The British account for 15% of the market with an average spend of approximately 300,000, mainly for apartments. Spanish account for 15% of the market followed by a market split between Scandinavians, Swiss, Irish and Belgians/Dutch. Property Values Property is still well priced here. You can still find property from around 150,000 for an apartment to 1.5 million for a luxury villa. The impact of the new motorway links between Palma and Manacor and the new roads between Arta and Cala Rajada have vastly improved the infrastructure of the region and this factor will positively effect on prices in the future. On the whole, this region was relatively undiscovered until a few years ago when prices shot up to as much as 80% in some areas. Last year was one of the greatest jumps in property values which rose by approximately 10-20%, this is reflected in the average spend which was approximately 300,000 in 2005 and increased to 450,000 in The Rental Market Rentals are popular in this region, particularly in the spring-summer months and in keeping with overall property values, rentals are still well priced and range from 500 per month for an apartment to 2,000 per month for a finca. Tip for Investors in 2007 If you want to find an affordable, frontline property you will find it in the north east. The area around the fishing village of Colonia Sant Pere, where Engel & Völkers will be opening a new shop in the spring, provides the ideal location for peace and relaxation. Historic old towns are particularly in demand and currently Capdepera old town represents great value for first time investors. This year, the local town hall is investing in a new pedestrian area between the market place and the castle, which will make the old town even more attractive. Price Increases Rental Yield* Type Beds m high low Villa with views ,650,000 80% 10% 2,000 1,500 Villa no views ,000 60% 5% 1,500 1,000 Apartment with views ,000 50% 15% 1, Apartment no views ,000 40% 2% Country house ,630,000 70% 5% 2,000 1,500 Townhouse ,000 70% 20% 1, Plot Price per m % 15% * Price per month 13

14 30/40 Min. East / South East This stretch of coastline has some of the most beautiful beaches on the whole island including the famous Es Trenc beach with its Caribbean style waters and white sand. The traditional resorts around Porto Colom, Porto Petro and Cala Figuera are all currently undergoing refurbishment to improve the general infrastructure of the harbour area and town. Resorts such as Colonia Sant Jordi, which is the traditional Mallorquin holiday area, has now become more popular with outside foreign markets. Last year the local council launched a new initiative to support and promote the natural beauty and environment of the area. Cala D Or, which has always been very popular with the British market, has also invested in its harbour area and now features a very smart new Yacht Club with excellent modern facilities. Inland the countryside is renowned for its rich, fertile red earth and gently undulating hills. In summer many farms sell produce from the side of the road particularly large melons of all varieties. Much of the property inland tends to comprise of large fincas with views of the countryside, some of which have views to the sea. The new motorway infrastructure has dramatically reduced drive time to this area by approximately 30 minutes from Palma and this is already having a positive effect on sales in the area and the local Engel & Völkers shop anticipates a further sales increase up to 30%. The Buyer The main buyers in this area are British and German which account for 80% of all sales followed by Spanish, Swiss, Scandinavian, Austrian, Italian and French. Clients are attracted by the traditional atmosphere of the area, the excellent beaches and landscape. The most requested areas tend to be close to the sea around the ports and beaches and villages such as Santanyi. Buyers are looking for properties with character and original features in keeping with the countryside. Many buyers use their property mainly in the summer months but this is gradually changing as more are staying for longer periods at a time throughout the year. Property Values There is a great range of property in this area which starts at around 180,000 to 4 million. Price increases over the past 5 years have been quite dramatic (approximately 30%). Last year the average increases were approximately 10% demonstrating that this trend looks to continue as the combination of local investment together with improved access via the new motorway further develops and updates the overall infrastructure of the area. The Rental Market Rentals are popular in this region, which is why the local shop is planning to open a rentals division. Tip for Investors in 2007 This area is wide open for investment. Areas such as Felanitx are still well priced and offer good value. Local investment is currently being made in many of the areas around the fishing ports and traditional seaside resorts of the 1970 s of Porto Colom and Cala Figuera and this is reflected in subtle changes such as smart new cafes and restaurants, re-painting of facades, more planting in public areas and refurbishment of seaside promenades. Areas that are definitely on the up include Porto Colom, Son Macia and Ses Salines. Price Increases Rental Yield* Type Beds m high low Villa with views ,200,000 40% 13% n/a n/a Villa no views ,000 40% 10% n/a n/a Apartment with views ,000 25% 15% n/a n/a Apartment no views ,000 25% 10% n/a n/a Country house ,300,000 35% 15% n/a n/a Townhouse ,000 40% 12% n/a n/a Plot Price per m % 15% n/a n/a * Price per month 14

15 Llucmajor 15 Min. Llucmajor is one of Mallorca s largest regions located on the south coast. It offers everything from the historic town of Llucmajor to tourism resorts along its 43 kms of coastline with five main beaches and beautiful countryside inland. Rural areas are generally quite flat with large areas of fields and open countryside free of buildings or industrial developments mainly because there are many large agricultural farms and fincas in this area. It is an excellent area for sports with two golf courses, almost 200 kms of dedicated cycling routes, sailing and watersports facilities and a wide variety of walks through the mountain areas such as Randa or along the coast. This region provides excellent value for money considering its proximity to Palma - now even closer because of the newly opened motorway. The local Engel & Völkers representative estimates that this factor has increased sales by approximately 10%. The Buyer The German market has been buying here for some time and accounts for 30% of all sales. However, the British only account for 10% of sales although interest from British clients is increasing. The rest of the market is made of Spanish, Scandinavian, Irish, Swiss etc The most requested urban areas tend to be on the coast: Son Veri Nou, Cala Blava and Maioris Decima. Popular rustic areas include: Vista Alegre, Son Monserrat and Puig de Randa. Property Values In the last five years as this area has been discovered, prices have shot up by as much as 110%. In 2006 prices steadily increased at around 6-10% with the greatest increases for apartments particularly frontline or with good sea views. Recently clients have started to show more interest in the area mainly because here frontline property to the sea is still affordable in comparison to other areas of the island. The average price of an apartment costs around 295,000 and a substantial finca around the 1 million mark. Tips for Investors in 2007 The region is wide open for property investment as practically everywhere still represents good value in comparison with other established residential areas of Mallorca. Frontline property is always a good investment and on this coastline you have the added benefit of excellent views of Palma Bay, particularly by night. Old town houses in the centre of Llucmajor, especially the area around the town hall, are also well primed for investment. Our local Engel & Völkers representative predicts a similar situation as existed in Palma 15 years ago when there was little demand for these types of properties and now prices have shot up. Price Increases Rental Yield* Type Beds m high low Villa with views ,350,000 80% 9% 4,000 2,700 Villa no views ,000 70% 6% 2,800 2,000 Apartment with views , % 10% Apartment no views ,000 80% 8% Country house ,100,000 70% 6% 3,500 2,500 Townhouse ,000 50% 5% 1, Plot Price per m % 4% * Price per month 15

16 Introduction Menorca & Ibiza The Balearic Islands are divided into Gimnesias (Mallorca, Menorca and Cabrera) in the North, and Pitiusas (Ibiza y Formentera) in the South-West. Their excellent climate with some 300 days of sunshine per year, wonderful beaches, and rich cultural past make these islands one of the preferred holiday destinations in Spain. All the islands have their own international airports and are approximately 2.5 hours away from most European cities. However, even though these islands are only hours apart by boat, or less by fast ferry, each of them has a distinctive personality all of its own. Menorca has a fascinating history with the greatest concentration of discovered pre-historic and bronze-age settlements in the world. It was a favoured location for the Romans, Arabs, Turks and Greeks and the Romans gave the island its present name which means little one in contrast to Mallorca, which means large one. It is an island of peace and relaxation and features 216 kilometres of coastline with 130 bays and some wonderful beaches. In spite of its popularity with tourists over the years, the island remains unspoilt. Ibiza is truly an island of contrasts and although it has a reputation for being a mecca for nightlife it also offers beautiful, unspoilt countryside. The real Ibiza is the land of farmers and fishermen and some of the most beautiful areas are off the beaten track. If you explore the island s interior, you will find a pure and simple Mediterranean culture with a rich history the remains of which can still be seen such as the famous wall-paintings of Ses Fontelles. The northern end of the island is particularly beautiful with its lemon and olive groves, green hillsides, water melon fields and rugged cliffs. Understanding the importance of sustainable tourism the local government has ensured that major stretches of the island are protected from over development. Menorca Ciutadella de Menorca Mahón Ibiza Sant Antonio Santa Eulària Salines Ibiza 16 Highways

17 Menorca Menorca has long been a favourite with wealthy investors from the Spanish Mainland for some time; they are attracted by the island s unspoilt beauty and relaxed peace, plus easy access from the Spanish Mainland. In the past few years outside investors have followed suit which has had a dramatic effect on property values. The island has two main towns; Mahon, which has been the capital of Menorca since the British moved it from Ciutadella in 1721 and it became the capital mainly because it has one of the largest natural harbours in the world. This factor, coupled with its location in the Mediterranean, has made it a strategic stronghold for many nations throughout history. At the opposite end of the island, Cuitadella is also a major town and the original capital of Menorca. As you would expect, it is steeped in history and features beautiful architecture and is the nearest port to Mallorca. The maze of winding cobbled streets and alleys provide a wonderful atmosphere while meandering amongst the wide range of little bars and restaurants that are tucked away. Ciutadella is also renowned for its vibrant summer fiesta of San Juan with the famous dancing horses. Menorca is easy to explore, clean, hospitable, almost crime free (locals still leave their doors unlocked), with the wonderful Mediterranean climate visitors and locals alike can make the most of the golf course and 10 marinas, which are very popular during the summer and the warmer winter days. Access to this island has improved dramatically in recent years with regular ferry services and flights from the Spanish mainland or Mallorca and international fights now all year round, with daily flights in high season from several destinations in Europe including the UK, Germany. The Buyer The majority of buyers at the moment are Spanish (75%), British (20%) and German (5%). Often buyers will invest in the island as a primary residence and others visit several times a year. The average spend is around 750,000. Property on or beside the sea is the most requested and clients are mainly looking for apartments, villas or country fincas. The most requested areas are Binibeca, Mahón (particularly with the Spanish and the British), Es Castell and Sant Lluis due to their proximity to the airport. However, no matter where you are on the island, the airport is only an hour away at the most. Property Values The size of the island limits the amount of development for both infrastructure and property. In recent years, Menorca has enjoyed a buoyant property market with large price increases in the region of 50% and more. However, last year this situation began to stabilise and it is anticipated that prices will start to level out in 2007 and then increase at a more sensible rate. This market trend will create a more agreeable negotiating environment for buyers. Rental Market Approximately 30% of clients are keen to let their properties and the majority of rentals are concentrated in the summer season as there is little demand in the winter. Long term rentals are buoyant at the lower end of the rental market. Tips for Investors in 2007 Rural areas of Menorca are still worth investigating and because of the proximity to the sea; clients are now more inclined to look inland. Furthermore, as prices stabilise, there are more opportunities throughout the island. Price Increases Rental Yield* Type Beds m high low Villa with views ,750,000 n/a n/a n/a n/a Villa no views ,000 n/a n/a n/a n/a Apartment with views ,000 n/a n/a n/a n/a Apartment no views ,000 n/a n/a n/a n/a Country house ,200,000 n/a n/a n/a n/a Townhouse n/a n/a n/a n/a Plot Price per m n/a n/a n/a n/a * Price per month 17

18 Ibiza Ibiza is often called the White Island because of its white buildings and typical smooth domed architecture. The island became a major tourism destination during the 1960s famous for its Hippie-Culture and nudist beaches. Today, Ibiza is ever popular with singles, families and older visitors although it continues to have a wild side with its famous nightlife and clubs, but there is far more to this magical island than nightclubs Ibiza offers a mild climate, wonderful beaches, peace and relaxation, traditional Mediterranean lifestyle and wonderful landscapes. There is plenty to do away from the beach such as; exploring Ibiza s lively towns and sleepy country villages, playing golf on the island s 18 hole course (others are currently under construction or in planning), walking, cycling or sailing around one of the island s many marinas. The island is easily accessible via the Spanish Mainland and for most of the year, there are plenty of daily scheduled flights from all over Europe. Ibiza has a cosmopolitan feel and is multi national, attracting people from all over the world and from all walks of life together with many celebrities from the arts, music and film industries. They enjoy the island s understated chic and for the privacy it offers them. Many celebrities and international business people have used the services of renowned architects who have designed state of the art luxury villas combining modern style with other influences from around the world. These properties have become famous architectural references and are found in top design magazines. Recently, a new highway connection to the airport has been built and has increased accessibility to all parts of the island making travelling times considerably faster. This factor, according to three local Engel & Völkers shops, has increased sales by approximately 10%. There is strong demand here as clients discover they can get more property for their money and they are attracted to the rural landscape of the area in the north and north east. South/West Features luxurious residences and stylish mansions and many recently constructed properties. This area is more densely populated with views to the fourth Balearic Island of Formentera and to the other islands in the distance. The south/ west has many excellent beaches and protected areas for nature reserves; it also has good access to the airport. Ibiza Town and Outskirts Located close to the marinas, and the main port where cruise ships are moored and is a key area for hotel accommodation. Here, you will find comfortable, modern luxury apartments and villas, which have views to the old town D alt Vila and Ibiza s Biodiversity & Culture Site, declared a World Heritage Site by UNESCO in Finally, it has fast access to the city and its cultural life and is close to the island s golf course. North/North West This is an up and coming area, which is the island s main agricultural region. It has contras- South Ibiza Town and Outskirts 18 Type Villa with views 4 Beds / 350 m 2 Villa no views Apartment with views 2 Beds / 100 m 2 Apartment no views Countryhouse 3 Beds / 350 m 2 Townhouse 3 Beds / 180 m 2 Plot Price per m 2 Price Increases Rental Yield* Price Increases Rental Yield* high low high low 1,400, % 8% 6,000 n/a 1,680, % 10% 8,000 n/a 950, % 8% 4,000 n/a 1,200, % 8% 4,000 n/a 320, % 8% 1,000 n/a 500, % 10% 1,500 n/a 300, % 6% 800 n/a 350, % 8% 1,000 n/a 1,000, % 5% 3,000 n/a , % 10% 1,400 n/a 850, % 10% 2,000 n/a % 5% % 10% * Price per week

19 ting landscape from high cliffs to green forests and is quiet and sparsely populated featuring large plots of land and more traditional houses, many of which have been converted into modern stylish houses. This area is popular with tourists and there is life here year round. There are wonderful places to visit, many secluded bays and quaint villages. Property here tends to be in residential areas featuring luxury villas. East/North East This area is popular with tourists and there is life here year round. There are wonderful places to visit, many secluded bays and quaint villages. Property here tends to be in residential areas featuring luxury villas. The Market The market is very mixed with buyers from all over Europe and from across the Atlantic. The most predominant buyers are British, Italians, Spanish, Scandinavians, Swiss, Dutch, Belgians, Germans and the French. The most requested properties are villas and apartments with greater demand for designer style property. South west of the island is generally the most requested area. Property Values Ibiza property prices have boomed in the past five years in comparison to some of its neighbouring islands achieving increases in the region of %. In 2006 prices continued to rise steadily at around 5-10%. You will see from the boxes below that there is a great range of property prices on the island, the less expensive in the north of the island starts at around 180,000 for a 2 bedroom apartment to 765,000 for a 4 bedroom villa. However, in the east and south of the island the prices leap up to a starting price of approximately 300,000 1 million plus. However, the best luxury properties are not only found in the south or south west. Now every area of the island features unique luxury property and every area has its selling points and advantages depending on the requirements of the prospective clients. Rental Yields Clients will spend anything from two weeks in the summer to three months per year in their properties and the majority, approximately 85%, are interested in letting their properties. Rental yields are particularly lucrative in summer, which is when the majority of property owners let. Rental yields are pretty constant throughout the island at this time when a well appointed villa can achieve up to 8,000 per week and potentially more for a very large, luxury property. Insider Tip for 2007 Ibiza continues to attract attention from a wide range of international clientele and is definitely one of the Mediterranean s hot spots for For first time investors the areas of San Carlos and San Juan (north east and north of the island) should be investigated. Property here is still well priced in comparison to the south. and larger plots are still available here in a quiet, rural setting, making this area an attractive buy. In addition, the local town hall is keen to develop the existing infrastructure and offer more flexibility within the existing planning regulations. North/San Juan East/Sta. Eulalia Type Villa with views 4 Beds / 350 m 2 Villa no views Apartment with views 2 Beds / 100 m 2 Apartment no views Countryhouse 3 Beds / 350 m 2 Townhouse 3 Beds / 180 m 2 Plot Price per m 2 * Price per week Price Increases Rental Yield* Price Increases Rental Yield* high low high low 1,625, % 8% 4,000 n/a 1,680, % 10% 8,000 n/a 765, % 8% 3,000 n/a 1,300, % 8% 4,000 n/a 290, % 8% 1,000 n/a 420, % 10% 1,500 n/a 180, % 8% 800 n/a 320, % 8% 800 n/a 950, % 5% 2,000 n/a 1,200, % 5% 2,500 n/a 400, % 10% 1,400 n/a 630, % 10% 1,500 n/a % 10% % 10%

20 Engel & Völkers Shops 29 Shops in the Balearic Islands Mallorca Shop Artá Calle Antoni Blanes, 18 E Artá Tel.: (+34) Fax: (+34) Shop Deiá C/ Archiduque Luis Salvador, 17 E Deià Tel.: (+34) Fax: (+34) Shop Cala Ratjada C7. Ramon Franco 32, Local 7 E Cala Ratjada Tel.: (+34) Fax: (+34) CalaRatjada@engelvoelkers.com Shop Cala Millor Avenida Juan Servera Camps, 13 E Cala Millor Tel.: (+34) Fax: (+34) CalaMillor@engelvoelkers.com Shop Mallorca Invest C/. Santa Ponsa, 2 Local 3 E Costa de la Calma Tel.: (+34) Fax: (+34) Mallorca.Invest@engelvoelkers.com Shop Fornalutx C/ Alba, 2 E Fornalutx Tel.: (+34) Fax: (+34) Fornalutx@engelvoelkers.com Shop Inca C/. General Luque, 7 E Inca Tel.: (+34) Fax: (+34) Inca@engelvoelkers.com Shop Son Veri Nou La Rambla s/n E Son Veri Nou Tel.: (+34) Fax: (+34) Llucmajor@engelvoelkers.com Shop Palma Paseo del Borne, 8 E Palma Tel.: (+34) Fax: (+34) Palma@engelvoelkers.com Shop Paguera Avenidad e Paguera, Local 13 E Paguera Tel.: (+34) Fax: (+34) Paguera@engelvoelkers.com Shop Pollensa Via Pollentia, 20 E Pollensa Tel.: (+34) Fax: (+34) Pollensa@engelvoelkers.com Shop Portals C/. Benito Jeronimo Feijo, Local 7 E Portals Tel.: (+34) Fax: (+34) Portals@engelvoelkers.com Shop Puerto Pollensa C/ Juan XXIII, 11 E E Puerto Pollensa Tel.: (+34) Fax: (+34) PuertoPollensa@engelvoelkers.com Shop Puerto Alcudia Calle Theodoro Carnet 12, 8 baja E Puerto Alcudia Tel.: (+34) Fax: (+34) PuertoAlcudia@engelvoelkers.com Shop Puerto de Andratx (Headoffice) C/. Isaac Peral, 50 E Puerto de Andratx Tel.: (+34) Fax: (+34) Andratx@engelvoelkers.com Shop Puerto de Andratx II Cristobal Colon, 1 E Puerto de Andratx Tel.: (+34) Fax: (+34) Andratx@engelvoelkers.com Shop Puerto de Andratx III Plaza de la Iglesia, 1 E Puerto de Andratx Tel.: (+34) Fax: (+34) Andratx@engelvoelkers.com Shop Puerto de Sóller Paseo Es Traves, 14 E Palma de Mallorca Tel.: (+34) Fax: (+34) PuertodeSoller@engelvoelkers.com Shop Santa Ponsa Avenida Rey Jaume I, III E Santa Ponsa Tel.: (+34) Fax: (+34) SantaPonsa@engelvoelkers.com Shop Santa Maria Plaza Hostals, 8 E Santa Maria Tel.: (+34) Fax: (+34) SantaMaria@engelvoelkers.com Shop Santanyi Plaza Major, 18 E Santanyi Tel.: (+34) Fax: (+34) Santanyi@engelvoelkers.com Shop Son Rapinya Cami de Rapinya, 93 E Palma Tel.: (+34) Fax: (+34) SonRapinya@engelvoelkers.com Shop Sóller C/. Bauza, 6 E Sóller Tel.: (+34) Fax: (+34) Soller@engelvoelkers.com Ibiza Shop Ibiza I C./ Carlos V, 12, local 10 E Ibiza Tel.: (+34) Fax: (+34) Ibiza@engelvoelkers.com Shop Ibiza II Avenida Santa Eulalia 17 E Ibiza Tel.: (+34) Fax: (+34) Ibiza@engelvoelkers.com Shop Santa Eulalia C./ San Jaime, 37 E Santa Eulalia Tel.: (+34) Fax: (+34) Ibiza@engelvoelkers.com Menorca Shop Menorca Nord C/. Antoni Blanes, 18 E Artá Tel.: (+34) Fax: (+34) Arta@engelvoelkers.com Shop Menorca Süd Plaza Esplanada 40 E Mahón Tel.: (+34) Fax: (+34) Menorca@engelvoelkers.com Engel & Völkers Academy C/. Santa Ponsa, 2 Local 3 E Costa de la Calma Tel.: (+34) Fax: (+34) Mallorca.Invest@engelvoelkers.com 20

21 Company Background Engel & Völkers Worldwide Engel & Völkers is a global network of licence partners in 308 locations worldwide with 206 offices in 25 countries on four continents. It is the leading estate agency in Germany and is fast becoming one of the leading names in international real estate. In 2006 company turn over increased by 59% to over 127 million euros representing its most successful year since it was established in Overall, the Group completed real estate transactions worth an estimated total of 3 billion euros in This year, Engel & Völkers will continue its expansion plans in the USA where new headquarters have been opened in New York and Hong Kong to oversee expanding operations in North and South America and in Asia and Australia, respectively. According to Chief Executive Officer, Christian Völkers; at least one new residential property shop is opening each week and we can already predict that this rate of expansion will double during the course of Based on those shops already operating and planned new shop openings in 2007 we can forecast a growth for the Engel & Völkers Group of 40-50%. Engel & Völkers has a major presence on the Spanish Mainland, The Balearic and Canary Islands with 49 residential property shops at present, followed by South Africa with 38 and Switzerland with 17 shops. Five residential property shops are already operating under the Engel & Völkers brand in the USA. Networking Worldwide One of the key strengths of the company is the power of its global network. The Engel & Völkers shops in the Balearics and the Spanish Mainland all benefit from the network the company has in the major home markets of Germany and Britain. Cross selling with Engel & Völkers throws the net wide for potential buyers and for the vendor this means a shorter marketing period to completion of sale. One of the most important selling tools is the Engel & Völkers in-house architectural and lifestyle magazine GG, which is distributed throughout the network to showcase the organisation s most exclusive residences around the world. An increasingly important marketing tool for the company is the corporate website, which will be relaunched in May this year to reflect the international reach of Engel & Völkers. Engel & Völkers Working Practice Much of the success of the brand can be attributed to the way in which all the Engel & Völkers shops treat their buyers and vendors and the high level of service and after sales service which is provided throughout the organisation. Each sales person is trained to follow a set procedure for preparing a property for sale to ensure that the property has all the correct paperwork and licences in order, that all property details are correct, and that a full briefing has been given by the vendor, or the buyer, so that everything regarding the transaction is legal and crystal clear to both parties. This is a key aspect of the company philosophy and one that is strictly adhered to in order to maintain trust and confidence that the brand gives the customer worldwide. 21

22 Imprint An in-house production of Engel & Völkers Marketing Coordination Nicole Rose Text Dominique Carroll Design Christine Möller, Nicole Rose Ninguna parte de esta publicación puede ser reproducida, almacenada o transmitida en manera alguna ni por ningún medio, ya sea eléctrico, quimico, mecánico, óptico, de grabación o de fotografía, sin permiso previo por escrito del editor. 22