Palma de Mallorca is a city marked by the tourist economy. Like the island, the city welcomes a large number of visitors attracted by its exceptional geographical position, its natural and cultural charms and its good level of security. Driven by strong foreign demand, real estate in Palma, this is a continuous price increase for 22 months.
Palma or Palma de Mallorca is the main city of the island of Mallorca and the capital of the autonomous community of the Balearic Islands, Spain.
Founded in 123 BC south of the island of Mallorca and the bottom of the bay to which it gives the name, it was a strategic port in the Mediterranean – off Valencia, halfway between Europe and Africa – which it fueled the greed of many peoples: Romans, Vandals, Vikings, Almoravians succeeded each other before the city became the capital of the kingdom of Majorca, successively integrated with the crowns of Aragon and Spain.
After a first golden age in the Middle Ages, the economic revival of Palma went hand in hand with the development of the steam marine. At the beginning of the 21st century its main economic resource was tourism. The city has a beautiful historic center. The cathedral, the Almudaina Palace, the market halls and the Plaza Mayor are all must-see places for the visitor.
Palma has a typical Mediterranean climate with an average annual temperature of 18 ° C. The city receives between 350 mm and 500 mm of rain per year spread over 51 days of the year. The heat record is 38.8 ° C and the cold record is -2.7 ° C. It is during the months of October and November that it rains the most with ten days of rain, while in July there are less than two on average. Frost is possible from late November to mid-March, but they are rare, of the order of 8 days a year, and of low intensity. The same goes for snow (marked in 1956 and in 2012).
The permanent population has tripled since 1950, from 135,000 in 1950 to 435,000 today, of which 20% are foreigners. The city of Palma brings together almost half of the total population of the island of Mallorca (870,000). The whole population of the Balearic archipelago is around 1,130,000 people.
This statistical data should be put into perspective: Palma and the Balearic Islands are among the most active European tourist sites in Europe, and the notion of permanent resident only gives one facet of their human geography. Indeed, with 13 million tourists for the island of Mallorca, mainly through Palma airport, human flows model the city atypically – in particular, with a marked seasonality.
Palma Airport is the third largest in Spain behind Madrid and Barcelona. In 2017, there were nearly 210,000 aircraft movements and 28 million passengers (+ 6.5% compared to 2016). A more recent tourist activity, the cruise ship with 567 boat tours in 2017 has allowed about 200,000 visitors to discover the city for 1 or 2 days.
Palma is equipped with high and middle class residences to welcome lovers of the city. These buildings remain of measured height and their design generally fits well in the urban environment. Developers are also transforming traditional residential homes into luxury apartments.
PRICES INCREASE BY 17% LAST 1 YEAR!
Palma is the Spanish city where real estate investments are the most profitable, with a 17% increase in sales prices in the last quarter of 2017 compared to the same period in 2016. Main reasons for this increase: a strong economic growth driven by the tourist activity and the attraction of the city for foreign customers.
And this growth continues in 2018 with + 10% in January 2018 compared to January 2017, which is also the largest increase in Spanish cities. This is the 22nd month of consecutive price rise! It is also the only Spanish city where prices are now higher than they were before the Spanish real estate crisis.
According to sources, the average sale price is 2400 to 2900 € / m2. These prices vary according to the district: the historical center is the most expensive (4000 € / m2) followed by the Poniente district west of the city (3200 € / m2) and the district of the Beach of Palma on the coast is the city (2900 € / m2), these are the three neighborhoods most popular with foreigners. Then come the North District (2200 € / m2) and the Levante District (2000 € / m2).
Rental prices are also up sharply, by 15% in 2017. Gross rental profitability remains high at 7%.
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