Mallorca’s real estate market in 2023: A boom despite global uncertainties. The real estate market in the Balearic Islands, especially in Mallorca, presents a fascinating mix of sophisticated luxury and unique natural beauty.
This island group attracts discerning investors with excellent infrastructure, high security, picturesque beaches, and a mild climate that spoils with over 330 hours of sunshine per year. In addition to these facts, Mallorca also impresses with a history that began thousands of years ago. In the midst of this paradise, ETERRA Iberia SL stands with a new chapter that not only changes the real estate market but also contributes to the sustainable development and preservation of the island.
About 6,000 years ago, the Balearic Islands were covered with expansive holm oak forests. The slow transformation of these paradisiacal islands into a cultural landscape began with the first people, experienced sailors, and was shaped by the influences of Stone Age people, Carthaginians, Romans, Germans, Arabs, and Catalans. Today we see a rapidly progressing change in the cultural landscape, especially through mass tourism, which has transformed the Balearic Islands into a modern and diverse real estate landscape.
When considering the different landscape types on Mallorca, from the impressive Sierra de Tramuntana to the rocky Calas de Mallorca, the diversity of the Balearic Islands becomes clear. The islands not only offer unique natural beauty but also remarkable biodiversity with endemic animals and plants. The Balearic Islands are therefore not only a sought-after real estate paradise but also a fascinating “little Galapagos” that impresses visitors with its history and natural diversity.
Fascination of the Balearic Islands: Luxury amidst natural beauty
The future development of real estate in the Balearic Islands, especially in Mallorca, promises to continue to bring fascinating dynamics in 2024. Mallorca stands out as a real estate market. An analysis by the Steinbeis Transfer Institute and the Centre for Real Estate Studies shows an impressive increase in property prices by 10.9 percent in 2023. This not only underlines the island’s continued attractiveness to international buyers but also its resilience to global uncertainties. These figures clearly distinguish the island from other regions, such as the Canary Islands with an increase of 6.7 percent or Madrid with 6.3 percent. ETERRA Iberia SL complements these data with information on the current situation, in which Mallorca shows strong performance despite global economic challenges. In January 2023, the average price per square meter of real estate was 3,706 euros, which corresponds to an annual increase of 10.5 percent. In comparison, the rest of the European real estate market experienced a decline, influenced by inflation, rising energy prices, and geopolitical uncertainties. However, Mallorca stands out as an exception, and this could be attributed to the island’s popularity as a tourist destination and its pleasant climate.
ETERRA Iberia SL: Vision for sustainable and innovative development
The ETERRA Group, known for its innovative real estate projects throughout Europe, enters the stage with the opening of ETERRA Iberia SL in Palma. Led by Managing Partner Sven Bading, the company not only pursues ambitious projects but also has a deep-rooted responsibility towards Mallorca’s character and environment.
Particularly interesting is the project “La Residencia,” an exclusive community of luxury homes and apartments specifically tailored to couples and singles over 60. The senior resort and residence not only offers a green oasis with panoramic views of the Bay of Palma and the mountains but also amenities such as a spa, a library, an open-air cinema, medical practices, an organic grocery store, as well as a rooftop restaurant and cafe.
The sustainable construction of this project, which meets the latest market standards and is CO2-neutral, reflects the advanced orientation of real estate development in Mallorca. ETERRA Iberia SL and Jordi Herrero Architects emphasize their exclusive ownership rights and protection of intellectual property to prohibit any unauthorized use of the project. This not only highlights their innovation power but also their legal enforcement capabilities as developers in Mallorca’s booming real estate market in 2024.
Assuming responsibility: Integration into the local market
Mallorca, an island known for its stunning landscape and rich cultural heritage, has become a hotspot for real estate development in recent years. Mallorca is not only a place for real estate development but a habitat with a rich cultural heritage. ETERRA Iberia SL recognizes this and aims for harmonious integration into the local structure. “Respect for architecture and culture is as important as modern, sustainable construction methods,” says ETERRA Iberia’s founder, Sven Bading.
Sustainability is not a new concept in the real estate industry, but the way ETERRA approaches this topic is unique. “Sustainability is more than just a trend for ETERRA – it is a responsibility. The company relies on renewable energy sources, sustainable materials, and intelligent building technologies to minimize the ecological footprint of its projects,” explains Bading. In a recent local event in Palma, which ETERRA participated in, the importance of preserving Mallorca’s natural resources was highlighted. The event demonstrated how ETERRA plans its projects to protect the local flora and fauna while offering modern housing solutions.
Looking to the future: Technological innovations – sustainable construction in the Balearic Islands
ETERRA Iberia SL relies on technology as the key to the future. Sven Bading points out that the Balearic Islands are not only writing a fascinating history but also taking an innovative path – the path towards sustainable construction and a circular economy. The Balearic government’s vision to make the islands the world’s first holiday destination with a circular economy is supported by independent environmental organizations such as the Mallorca Preservation Foundation, Save the Med, and the Marilles Foundation. This strategy for more sustainability not only appeals to environmentalists but also to property developers and architects who recognize a clear trend towards ecological responsibility, like those responsible for ETERRA Iberia SL.
“Sustainable real estate is considered future-proof, and in Mallorca, the energy sector has achieved impressive records,” says Bading. In 2023, 178 megawatts of electricity were produced from renewable energies, a record high that exceeded previous standards. The share of renewable energy in the energy mix temporarily reached nearly 30 percent, nearly five percentage points higher than the previous record. One particularly impressive detail: solar power accounted for more than 25 percent for four hours.
The boom in renewable energy on Mallorca is no coincidence. In the past eight years, multimillion-dollar subsidy programs, facilitation in the authorization process, and legislative reforms have led to an unprecedented upswing in the sector. The number of self-sufficient solar installations has soared, with 5,670 new installations last year alone, bringing the total to over 10,000. The Balearic government aims not only to increase the share of renewable energy but also to drive forward the “democratization” of electricity production. This is intended to strengthen self-sufficiency, and for the first time, multiple consumers now have the opportunity to come together and collectively use a solar installation. Sven Bading adds that this innovative approach to energy production reflects that the Balearic Islands are at the forefront not only in the real estate market but also in sustainable energy development. It is a path to the future that not only protects nature but also paves the way for sustainable construction and living.
ETERRA and the community: A contribution to social and economic well-being
ETERRA is not only involved in the construction of real estate but also in the community. Positive relationships with locals, support for cultural and social projects, and a contribution to the welfare of the island are integral parts of the company’s philosophy. With the opening of the ETERRA Iberia SL office in Palma, the ETERRA Group wants to write a new chapter for Mallorca. A unique combination of respect for local culture, sustainable development, modern technology, and strong community commitment positions ETERRA as a pioneer in real estate development on Mallorca. Sven Bading sums it up: “Our projects are more than just buildings; they are a promise for a sustainable, integrated, and innovative future.” Mallorca is therefore facing exciting times as one of the most forward-thinking real estate markets in Europe.
Author: Chanel Ehlers, Blogger
ETERRA Ibera SL is an innovative and future-oriented real estate company from Magdeburg that is committed to sustainable living. The company offers a wide range of services and works closely with its customers and investors to meet individual needs.
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