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Luxury boom in the southwest: Why real estate investment is still worthwhile here

Mallorca Southwest 1
A place where you can enjoy life to the fullest - provided you have enough money in the bank to afford a fancy villa. Because the motto here is "Go Big or Go Home" - and who wants to go home when you're in paradise?
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Mallorca is full of hotspots and unique living experiences, from the picturesque north coast to the lively south. I've set out to go through and analyze the different areas of the island for you. Today we dive into the southwest, a region that has had a magnetic effect on the real estate market since the early 2000s. Why prices are skyrocketing here and exactly what you can expect for your investment in this enticing region, we'll now take a look together. 

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View of the sea in Illetes, Calvià

For decades, the southwest of the island has been considered a center of attraction for real estate buyers looking for luxurious properties. As early as 1980, the first exclusive residential complexes and villas were built near the impressive ports of Portals Nous and Port Andratx, which set a significant milestone for the development of the real estate market in this region. Nowadays, the southwest continues to enjoy great popularity among Germans, British, 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 traffic routes are excellently developed and the range of services is impressive in 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 with breathtaking views of the sea and mountains await you. The great thing about it is that you are only a stone's throw away from the city of Palma and can therefore enjoy the best of both worlds to the fullest. Mallorca's diverse 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 a passionate golfer, you'll be pleased to know that the southwest is home to some of the best golf courses on the island. A total of six first-class courses stretch from Bendinat to Andratx. But that's not all: the region also boasts fantastic beaches, ranging from picturesque bays to extensive stretches of coastline, with something for every taste. Water sports enthusiasts also get their money's worth here and can choose from a variety of activities. And for tennis fans, the Mallorca Country Club has recently opened its doors, which is another highlight for sports enthusiasts in the area.
  • Communities and schools with an international focus. Since 1990, Calvià has been home to communities from a wide variety of cultural backgrounds. Portals and Bendinat continue to enjoy great popularity today, with an impressive 200% increase in prices 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 allow parents and children to build and maintain communities and networks in one of Europe's hotspot regions.
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Bendinta Golf Course

Market prices

In the southwest of Mallorca, property prices have risen continuously over the past 20 years. Although the market showed a slight stagnation in 2022, many brokers and investors do not expect this trend to continue for the time being. Demand remains high and supply is increasingly dwindling, stabilizing prices. E&V reports that supply has decreased by about 22% after the record year of 2021. 

Demand exceeds supply, and interesting or new construction projects continue to sell quickly. The majority of potential buyers in the southwest are looking for luxurious villas or modern apartments close to the sea or water, yet want 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 square meter prices 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 first-line villas can reach 19 million euros, as such properties are hard to find on the market. 

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Port d'Andratx

Those who are not looking for a luxury property, but still prefer a detached house with a pool, must expect to pay 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 neighboring areas such as Bendinat, Portals and Costa d'en Blanes, average prices per square meter are around 8,500 euros. In Santa Ponsa, average prices per square meter have risen from around 6,000 euros to 7,500 euros in the past year. In the interior of the island, in municipalities such as Andratx and Calvià, average prices are somewhat lower, at around 4,500 euros per square meter. 

Buyers from Germany, the United Kingdom, Spain and Sweden show great interest in the real estate market in the southwest of Mallorca and often quickly decide to buy a new home on the island. Loans are usually considered, if at all, only for tax reasons.

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Port Adriano

Top locations in the southwest 

Now that we have an overview of the general characteristics of the Southwest, I would like to go into more detail about the most fascinating areas. The Southwest is by no means homogeneous; there exist diverse areas, each captivating with its own peculiarities: 

  • Andratx: Nestled between mountains, Andratx is a real treasure with its small, famous marina. It is an ideal starting point for hiking in the Tramuntana mountains and nearby beaches are best explored by boat. The harbor also provides a great setting for a delicious meal or a romantic sunset.
  • Camp de Mar: A quiet place that invites to a relaxing and active vacation. There are a number of first class hotels on a bay surrounded by Aleppo pines. Trekking, mountain biking or car rental tours can be undertaken here. 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 relax. 
  • Palmanova: Located about 15 kilometers west of Palma directly on the sea, Palmanova is popular with many British tourists in the summer. This area has the beaches Platja des Carregador and Platja Son Maties, connected by a long promenade and well suited for children.
  • Paguera (or Peguera): is one of the top addresses for beach vacations. Here you will find three beaches with high standards, fine sand and comfort. On 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 relaxing walks or short hikes.
  • Port Adriano: The bay of Porto Adriano with its luxurious harbor impresses with its unique favorable location. The place is surrounded by beautiful nature and an excursion to the nearby Malgrat Islands is definitely worthwhile. Thanks to the numerous luxurious restaurants, boutiques and galleries, Puerto Adriano has become the ideal meeting place to unwind.
  • Portals Nous: Portals Nous is a cozy village located to the west of Palma. It is located only twelve kilometers from the capital and is just a short walk from the exclusive Puerto Portals marina. Therefore, it is not only popular with vacationers, but also highly sought after as a place to live. British second home owners in particular are delighted with the community here, which lives on even in winter.
  • Port Andratx: The port of Andratx developed from a small fishing village to a noble place for high society. The deep bay surrounded by mountains makes Puerto d'Andratx so popular and unique. In addition to small fish markets, there are also fine boutiques, restaurants, cafes, galleries, jewelers, exclusive delicatessens and one real estate agency next to the other.
  • Santa Ponça: Santa Ponça is surrounded by fine sandy bays and bizarre rock formations. German tourists in particular feel at home in the historic bay with its beautiful beach promenade. It has a marina, golf course, shopping centers 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 of Es Pantaleu and Sa Dragonera. The latter has become a nature reserve, home not only to lizards but also to hawk-eagles and coral gulls. The romantic mountain landscape invites to 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. 
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Sant Elm

I hope to have provided a deeper insight into the southwestern region with these explanations. If you have any additions or suggestions, please do not hesitate to contact us!

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