A changing real estate market
A little over ten years after the great global crisis - a crisis that has not spared the real estate market in Spain and its Mediterranean islands - it would appear that business is booming like never before. And especially on Minorca, Majorca's little neighbor! While the pandemic may have dampened people's desires to go elsewhere for a while, there's no doubt that foreign investment - already strong over the last decade - is playing into the hands of the Menorcan real estate market. Since the early 2020s, prices have been rising slowly but surely. It has to be said that, unlike the other Balearic islands, the prices of villas, apartments and other rural buildings in the center of the island had not yet attracted foreign investors. But the tide has been turning for some time now. And there's every chance that residences on Menorca will eventually reach the exorbitant prices of those on Mallorca or Ibiza. For the time being, properties on Menorca offer the best value for money in the Balearic Islands: they are generally 15% to 20% cheaper than in Majorca or Ibiza (and we're not talking about beachfront residences, where Menorcan properties are up to 60% cheaper than in Ibiza, and as much as 50% cheaper than in Majorca). On Menorca, the average property price is around €2,300/m², compared with €5,000/m² on Majorca and €7,000/m² on Ibiza. And Menorca is home to a wide variety of properties spread all over the island, from small city-center apartments to elaborate palaces, from country houses to seaside cottages. In short, it looks like it's still a good time to invest in Menorca!
The origin of investments is also changing. For many years, the British were the main foreign investors in Menorca, but recently a new nationality has been steadily taking an interest in the Menorcan real estate market: the French! For some time now, Menorca has been the new Eldorado of the French-speaking market. And the type of property purchased by this new clientele is rather high-class: 60% of property transactions over €600,000 in Menorca in recent years have been carried out by French nationals. Whether it's a second home or the start-up of a hotel business such as a bed and breakfast or boutique hotel, these are generally very fine properties they're buying. Highly sought-after llocs (typical old Menorcan farmhouses usually located in the center of the island), for example, are transformed into charming country houses. Historic buildings in town centers are also favored by the French, particularly in Maó and Ciutadella: they are keen on small palaces and other manor houses, which they restore and convert into either living quarters or luxury accommodation (sometimes very high-end, as in the case of the Relais & Châteaux Faustino Gran hotel-restaurant in Ciutadella). French-speaking luxury hotel groups such as Group Fontenille, Experimental Group and Group Zannier Hotels are also present on the island, as are smaller, chic structures such as the boutique hotels El Consul and Ses Penyes. However, as Menorca is not a huge territory (around 700 km²), the amount of available property is limited! Added to this is the fact that the island has always made the preservation of its environment and fragile ecosystems a priority. As a result, building standards, particularly in rural areas, are quite strict.
A little corner of paradise
There are many good reasons to choose Menorca as your second home. First, its proximity to France. It's very easy to reach the island from France, either by plane (Maó international airport) or by ferry (Ciutadella and Maó ports). Secondly, the Menorcan climate is extremely pleasant. During the summer season, which runs from April to September/October, you can't get enough of the great outdoors! A thermometer at 30°C and an incredible amount of sunshine for long, dry summers! The shoulder seasons are equally delightful: spring and autumn are particularly mild! Winter, too, is mild. Admittedly, the days are shorter, but no less bright!
Another strong argument is that Menorca is a relatively undeveloped area, reminiscent of the Mediterranean landscapes of fifty years ago. No high-rise buildings so typical of Spain's charmless seaside resorts, no huge discotheques, no mass tourism... Whereas Ibiza and Majorca decided to adapt their infrastructures to mass tourism as early as the 1960s, offering all-inclusive packages and building at breakneck speed without worrying too much about the impact on the landscape and the environment, Menorca has retained a certain sobriety with regard to tourism. So, while Mallorca receives 10 million visitors a year, Menorca receives just one million. And even in the height of summer, the tourist season par excellence, we don't suffer from the suffocating crowds. In short, this strategic choice has paid off: today, bucolic agricultural plains, authentic fishing villages, pristine beaches and coves bathed in crystal-clear waters make up Menorca's landscape, a veritable diamond in the rough! In fact, Menorca was declared a Biosphere Reserve by Unesco in 1993, in recognition of its well-preserved natural environment and rich ecosystems. The island is also renowned for the beauty of its beaches, from those in the south (Cala Mitjana, Turqueta or Macarella) to the wilder areas of the north coast (Baie d'Es Grau or Favaritx) and for its Cami de Cavalls, a nature trail that circles the island and is frequented by horseback riders, runners, cyclists and hikers. Yes, Menorca is an outdoor island with no shortage of activities!
Last but not least, Menorca is a particularly calm island where relaxation is the order of the day. There's no glamour and beautiful people like in Ibiza: life here is much more ordinary and quiet, much more authentic! But there's no lack of appreciation for good food and refinement. You only have to visit the decor and fashion boutiques and art and craft galleries in Maó or Ciutadella, visit the artisan markets, or take a look at the menus of the island's restaurants to be convinced. Mention should also be made of the island's vineyards, cheeses, liqueurs and other gourmet products. Menorca knows how to live well! And what can we say about the artistic and cultural program that punctuates the passing of the seasons?
Focus on Menorca real estate in 2023
Let's take a closer look, with figures to back it up, at the current state of Menorca real estate in 2023. To do so, local agency Bonnin Sanso, a leader in the Menorcan real estate market for over 35 years, has compared its figures for 2023 with those for 2022. The figures speak volumes about current trends. It seems that 2023 was an exceptional year: no fewer than 300 transactions were completed by the agency, for a total of €80,000,000, consolidating its position as a key player in the real estate market. The average value per transaction in 2023 was around €275,000.
In detail, properties under €100,000 accounted for a 14% share, while the share of transactions between €100,000 and €300,000 fell (from 56% to 51%), that of purchases between €300,000 and €500,000 stagnated at 16%, while the share of sales of properties over €500,000 rose from 14% to 18%.
In terms of national origin of buyers, in 2023, 61.7% were Spanish (vs. 62.8% the previous year), 13.5% British (vs. 9.6% in 2022), 12% French (stable), while the number of Germans buying fell from 5.3% to 4.3%. The remaining 3.2% are buyers of various nationalities, including Americans and Belgians.
In terms of sales, Spaniards top the list with 73.2%, although this is slightly down on 2022 (76.5%). The proportion of Britons selling in 2023 has risen to 20.3% (from 16.2% in 2022), while the Germans remain in third place with a solid 2%. The remaining sellers (4.5%) are French, Italian and Dutch.
The type of property sold has also changed. Apartment sales fell slightly from 48% to 44% of total real estate transactions, while villa sales increased from 16.2% to 18.3%. There was also a significant increase in sales of commercial premises, from 4% to 6.7%. Finally, the remaining 31% concerned farmhouses or commercial buildings.
Bonnin Sanso, the reference agency in Menorca
Founded in 1988 by entrepreneur Juan Torres, the Bonnin Sanso real estate agency has become the benchmark in Menorca real estate. With 35 years' experience under its belt, its in-depth knowledge of the market and its key players are key assets that have enabled it to stand out from the crowd once again this year. Its other asset: a team that listens to its clients, offering sound advice (the team includes around ten French-speaking agents) when it comes to both reform and construction, as well as keeping clients abreast of the latest real estate trends. Buying, selling, renting, commercial activities, new construction, consulting - Bonnin Sanso provides a comprehensive and extremely useful range of services for future new residents of Menorca! Some members of the team have been here for over twenty years, driven by a passion and genuine interest in Menorcan real estate and by the desire to find the property that best suits their customers' tastes and budgets. They are able to provide a personalized service that adapts to changes in the market, as well as to the desires and needs of buyers/renters. In short, a trusted partner you can't do without!
