The number of buyers from these countries is increasing in search of a high-end refuge in case the Russian-Ukrainian conflict escalates.
Czechs, Poles, and Ukrainians are some of the nationalities that represent a notable increase in the Balearic real estate market with the war as the main trigger. The war in Ukraine has boosted the number of Eastern European citizens with high purchasing power interested in buying real estate away from the conflict.
Mallorca and Menorca in particular have become increasingly sought-after destinations for luxury residential tourism. Real estate agencies specializing in sales to foreigners have noted a significant increase in buyers of these nationalities.
In this way, not only has the number of wealthy Ukrainians in search of a high-standing property in the Islands increased but there’s also been an increase in buyers from countries such as Poland or the Czech Republic interested in acquiring a sort of “safe house” in the Mediterranean and is considered a preventive measure in case the war threatens to escalate and end up crossing the Ukrainian borders.
This is a trend that has been detected since the beginning of the war more than six months ago, and which will be reflected in the final balance of sales and purchases this year. According to the president of the Balearic Association of National and International Real Estate Companies (ABINI), Hans Lenz, he considers it logical that the Islands are among the preferred refuges for this type of profile that seek to diversify their “getaway” options.
These are people who have decided to distance themselves from the war and the Balearic Islands are presented as an attractive alternative, not only because of the climate but also because of its good education and health facilities. Until now, no Eastern European country had ever been among the main issuers of homebuyers.
According to data from the International Federation of Real Estate Professions (FIABCI) in Spain, Germans were the foreign nationality with the highest number of transactions in 2021, before the breakout of the war.
The Germans were followed at a considerable distance by the British (492 purchases), French (263), and Swedes (200). The top ten is completed, in this order, by Italians, Dutch, Swiss, Austrians, Danes, and Moroccans. Although Germans are the absolute protagonists of the market in Mallorca, the French and British are dominant in Menorca, while in Ibiza and Formentera there has been a strong increase in the Dutch.
The Real Estate Boom in Menorca
The real estate boom in Menorca is relatively recent. Ten years ago the French VIPs started to arrive from Paris. A couple of years ago Spanish businessmen started to arrive on the island, businessmen who wanted to invest in property. According to Francisco Arnau, director of Engel & Völkers Menorca, he says that 500,000 or 600,000 euros to buy a house on the island is considered a normal spending budget.
This increase in demand, coupled with the shortage of supply, has resulted in an inevitable direct increase in prices. It’s estimated that prices have risen between 10-15% for the most exclusive properties, while Arnau explains that not everything has risen equally.
The demand for luxury properties is concentrated in two very different product types. On the one hand, agricultural estates such as vineyards with their corresponding country house and, on the other, houses on the seafront. Seaside properties are very rare and do not go below one and a half million euros, while country estates, for example, are impossible to buy below two million.