MARKET STUDY: PROPERTY CRISIS? IN MALLORCA, PRICES CONTINUE TO RISE - LUXURY
PROPERTIES INCREASED IN PRICE BY 13 PER CENT IN 2023 AND BECAME MORE SCARCE

EQS-News: Homes & Holiday AG / Key word(s): Real Estate/Study
MARKET STUDY: PROPERTY CRISIS? IN MALLORCA, PRICES CONTINUE TO RISE - LUXURY
PROPERTIES INCREASED IN PRICE BY 13 PER CENT IN 2023 AND BECAME MORE SCARCE

28.02.2024 / 12:15 CET/CEST
The issuer is solely responsible for the content of this announcement.

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Porta Mallorquina Real Estate presents new market study

PROPERTY CRISIS? IN MALLORCA, PRICES CONTINUE TO RISE
LUXURY PROPERTIES INCREASED IN PRICE BY 13 PER CENT IN 2023 AND BECAME MORE
SCARCE

  * For the first time, the island-wide average price for luxury properties
    is more than 10,000 euros per square metre

* Supply is decreasing, especially for simple and luxury properties

* Property prices have risen by up to 78 per cent since 2015

* No end to price increases in sight

* Complete study:

https://www.portamallorquina.com/blog/mallorca-holiday-estate-market-study-2024

PALMA DE MALLORCA, 28.02.2024. Mallorca is booming. Visitor numbers are at
an all-time high and the property market is also unaffected by the global
challenges. In Mallorca, the average price per square metre for a holiday
property in January 2024 was around 5,800 euros. This is 1.7 per cent more
than in the previous year and shows a high degree of stability, for example,
compared to the German property market. The luxury segment remains the price
driver with an increase of 13 per cent. Top sea views can even cost up to
18.8 per cent more. The most expensive region continues to be the
south-west, closely followed by the increasingly popular Palma city.
(KM1)While
prices are rising, the number of properties for sale continues to fall. In
the luxury segment, the market is almost empty and experts do not see an end
to the price increases.

Mallorca properties remain stable in value: prices have risen by up to 78
per cent since 2015
These are the findings of an independent and representative market study
conducted by the Steinbeis Transfer Institute (STI) Centre for Real Estate
Studies (CRES) in collaboration with the property company Porta Mallorquina
Real Estate. Since the first study in 2015, the average price across the
island has risen by 55 per cent and in Palma City by as much as 78 per cent.
The inflation rate in the eurozone was 23 per cent in the same period. This
discrepancy underlines Mallorca's continued reputation as an attractive
region for property investments and is a clear sign of the region's
sustained value stability and attractiveness as an investment destination.

Study director Prof. Marco Wölfle from the Center for Real Estate Studies
(CRES): "Last year, Mallorca not only maintained its position as one of the
most sought-after holiday destinations and property locations in Europe, but
also further expanded it. The positive correlation between tourism intensity
and property demand remains intact. This fact, coupled with Mallorca's
attractive macro-location - with the beauty of the island, its mild climate
and high quality of life - makes the Balearic island a stable and lucrative
property market."

Properties at the edge of the price range particularly in demand: luxury
properties are becoming increasingly rare
The fact that Mallorca continues to be a seller's market is also reflected
in the development of supply. Compared to the previous year, 11.5 per cent
fewer properties are on offer. Properties at the upper and lower end of the
price range appear to be particularly popular with buyers, but luxury
properties no longer even account for 4 per cent of the island-wide supply.
In 2020, the proportion was still around 17 per cent. The proportion of
simple properties has even fallen by around 50 per cent to only around 9 per
cent within a year.

Porta Mallorquina franchise partner Timo Weibel: "The property market in
Mallorca can still fulfil practically every wish in terms of location,
features and budget. The fact that prices are calming down somewhat after
the double-digit increase in 2022 is positive for everyone and speaks
against the formation of a bubble. But anyone waiting for prices to fall
significantly, as in Germany, will be disappointed. At least there is one
piece of good news for prospective buyers. You can take it a little bit more
calmly again in your search for your dream property. In recent years,
properties have regularly been sold within days or a few weeks. Sometimes
even without a personal viewing by the buyer. This has normalized, but
prospective buyers should not waste time unnecessarily if they have their
sights set on a specific property."

Prices are highest in the south-west and rising fastest in the centre of the
island
As in previous years, the regional price level remains very different. Due
to the size of the island prospective buyers with wide ranges of ideas can
find suitable properties of stable value, fulfilling a lifelong dream or to
become an investment. The south-west remains the most expensive at 7,700
euros per square metre although Palma city is increasingly catching up at
7,300 euros per square metre. The most affordable region remains the centre
of the island with an average of 4,165 euros per square metre although
prices are currently rising particularly sharply there. Within a year,
buyers must pay an average of 13.5 per cent more for properties in this
region with its lush nature and Mallorcan lifestyle far away from the
tourist hustle and bustle.

Luxury remains a price driver and cracks the EUR10,000 per square metre mark
While supply in the luxury segment is falling, prices are continuing to
rise, and this in double figures. Last year, the island-wide average price
of a luxury property on Mallorca passed the 10,000 euro per square metre
mark for the first time. Compared to the previous year the price rose from
9,650 euros to 10,900 euros. In the south-west, which is well-known and
popular for its luxury properties, prices in this segment rose by 4 per cent
to 13,400 euros per square metre. As with average prices, other regions are
also catching up in the luxury segment. In the area around Palma, luxury
properties cost an average of 9,850 euros per square metre, 10.5 per cent
more than in the previous year.

Macro situation Mallorca: Record number of holidaymakers in 2023 also drives
property market
In addition to the property market, the tourism sector in Mallorca and the
Balearic Islands as a whole is unimpressed by the global challenges. For the
renowned American business magazine "Forbes", Mallorca was the top travel
destination for 2023. The result: at 14.4 million, more visitors came to the
Balearic Islands in 2023 than ever before. Compared to the previous year,
the islands recorded an increase in visitors of 9.1 per cent and this
positive development of tourism is sending a significant signal for the
island's property market. The positive correlation between the intensity of
tourism and demand for property remains intact: A large proportion of
visitors have the desire to own their own property in Mallorca, which is
sustainably boosting demand and, therefore, prices for holiday properties.

Outlook: New visitor records and rising property prices expected
The environment suggests that property prices on Mallorca will continue to
rise. A new visitor record is expected for 2024. The range of flights is to
be expanded, and not just from Germany. A new direct connection between
Miami and Palma, for example, is expected to attract more well-heeled
holidaymakers, and therefore potential property buyers, from the USA to the
island. The high demand, however, is being met by a declining supply and
newly-built properties cannot close the gap. CRES therefore expects property
prices to continue to rise in the low single-digit percentage range in the
coming years.

Independent market study Mallorca
Porta Mallorquina Real Estate presents the 10th edition of the annual market
study "Holiday Property Market Mallorca". Since 2015, the Freiburg
University Institute Centre for Real Estate Studies (CRES) in collaboration
with Porta Mallorquina Real Estate the market for holiday properties in
Mallorca.

The full study is available for download at
https://www.portamallorquina.com/blog/mallorca-holiday-estate-market-study-2024.

Press contact, interview and picture requests:
Porta Mallorquina Real Estate S.L.U.
Member of Homes & Holiday Group
Ludwigstraße 8, 80339 Munich
Phone +49 (0) 151 / 4001 60 85, ir@homes-holiday.com

About Porta Mallorquina and Homes & Holiday
Porta Mallorquina Real Estate S.L.U. was founded in 2005 and is a subsidiary
of the listed company Homes & Holiday AG. With eight locations on Mallorca
and a portfolio of more than 2,000 properties, Porta Mallorquina is one of
the largest estate agents on the island. The multilingual property website
is the leading estate agent website for Mallorca properties. Porta
Mallorquina grants franchise licences to independent real estate agents on
Mallorca. Under the Porta Holiday brand, the group operates an online
booking platform for holiday rentals. This enables Porta Mallorquina to
offer purchase, long-term rental and holiday rental from a single source.

More information: https://www.porta-mallorquina.de/ and
https://www.homes-holiday.com/de/


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   Language:       English
   Company:        Homes & Holiday AG
                   Theresienstraße 21
                   80333 Munich
                   Germany
   Phone:          +49 89 24 24 22 05
   E-mail:         info@homes-holiday.com
   Internet:       www.homes-holiday.de
   ISIN:           DE000A3E5E63
   WKN:            A3E5E6
   Listed:         Regulated Unofficial Market in Berlin, Dusseldorf,
                   Frankfurt, Munich, Stuttgart, Tradegate Exchange
   EQS News ID:    1847407

End of News EQS News Service
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1847407 28.02.2024 CET/CEST