Is buying a property in Son Espanyolet a good investment?

Last updated on December 29, 2023

Yes, the analysis of Palma de Mallorca's property market is included in our pack

If you've experienced the charm and Mediterranean vibes of Son Espanyolet, you may have thought about investing in property in this neighborhood of Palma de Mallorca.

Is it a good idea though? What's the current state of the real estate market in that area? Are property values appreciating or depreciating? Are investors seeing returns on their real estate investments? How's the demand for rentals?

We'll answer all these questions for you! When building and updating our property pack for Spain, our team has been researching and surveying this area. In fact, there is significant customer interest in investing there. Therefore, we believe it would be beneficial to include some information about it in our property pack.

Why do property buyers like investing in Son Espanyolet?

Son Espanyolet in Palma de Mallorca has become a highly sought-after location for property buyers, particularly for its unique blend of attributes that set it apart from other real estate markets.

Nestled in the bustling city of Palma, this area offers a distinct experience that balances urban living with a sense of community and tranquility.

One of the main draws of Son Espanyolet is its location. Situated close to the city center, it provides easy access to Palma's rich array of amenities, including shops, restaurants, and cultural attractions.

However, unlike the more tourist-heavy areas of Palma, Son Espanyolet maintains a quieter, more residential atmosphere. This makes it an ideal spot for those seeking the vibrancy of city life without the constant hustle and bustle.

The charm of Son Espanyolet lies in its authentic Mallorcan character. The area is dotted with traditional houses, many of which have been beautifully restored.

These properties offer a blend of historic charm and modern comforts, attracting buyers who appreciate both the aesthetic and practical aspects of their homes.

Son Espanyolet's rise in popularity can be traced back to the last decade when discerning buyers began to recognize its potential. It offers a more relaxed lifestyle compared to busier areas like Santa Catalina, yet it's close enough to enjoy the perks of urban living.

This balance has made it particularly attractive to a diverse range of people, including young professionals, families, and retirees. The area's community feel, enhanced by local markets and events, adds to its appeal.

However, it's important to note that the hype around Son Espanyolet is grounded in tangible qualities. The steady appreciation of property values in this area reflects a genuine demand. Factors like its strategic location, the charm of the properties, and the quality of life it offers contribute to this enduring appeal.

The kind of people attracted to Son Espanyolet are often those who seek a blend of the traditional and the contemporary.

They are typically individuals who appreciate the cultural richness of Palma but prefer a more laid-back environment. The area's schools, parks, and family-friendly amenities also make it appealing to families.

Despite its many strengths, Son Espanyolet is not without its weaknesses. The popularity of the area has led to a rise in property prices, which might be a barrier for some potential buyers.

Additionally, the influx of new residents and the ongoing development could potentially alter the area's character, a concern for those seeking to maintain its traditional charm.

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Why is Son Espanyolet a nice place to live?

Son Espanyolet offers a distinct and appealing lifestyle that combines the charm of island living with the conveniences of urban life.

This area is celebrated for its relaxed yet vibrant atmosphere, making it a nice place to live for a variety of residents, including expatriates and locals alike.

The lifestyle in Son Espanyolet is characterized by a harmonious blend of traditional Spanish culture and modern amenities. The area boasts a range of local markets, cafes, and restaurants, offering residents a taste of authentic Mallorcan cuisine and culture.

The community here is known for being friendly and welcoming, which is particularly appealing to expatriates. This inclusive environment helps new residents from different parts of the world to feel at home quickly.

Son Espanyolet has a thriving expat community, contributing to the area's diverse and cosmopolitan feel. Expatriates are drawn to this neighborhood for its quality of life, the sense of community, and the ease of integrating into the local culture.

Networking and socializing with fellow expats are quite common, often facilitated by local events and gatherings.

Living in Son Espanyolet does come with its costs. As with any desirable location, the cost of living can be higher than in less sought-after areas. This includes property prices and daily living expenses. Many find that the quality of life and the amenities available justify the expense.

Safety is a key consideration for any residential area, and Son Espanyolet is known to be a safe and secure place to live. The neighborhood maintains a low crime rate, adding to its appeal for families and individuals seeking a peaceful environment.

In terms of amenities and facilities, Son Espanyolet is well-equipped. The area is home to several reputable schools, catering to families with children.

For healthcare needs, there are local clinics and hospitals nearby, ensuring residents have access to quality medical care. Shopping options range from local boutiques to larger shopping centers, catering to a variety of tastes and needs.

The infrastructure in Son Espanyolet is robust, with well-maintained roads, reliable utilities, and excellent internet connectivity. This infrastructure supports a comfortable and convenient lifestyle, whether for work or leisure.

Accessibility is another advantage of living in Son Espanyolet. The area is well-connected to other parts of Palma de Mallorca, making it easy to explore the city or commute for work.

Major transport hubs, such as the airport, are easily accessible, which is a significant plus for those who travel frequently or have guests visiting from abroad.

Public transportation options in Son Espanyolet include buses and taxis, which are readily available. This network of public transport makes it convenient for residents to navigate the city without the need for a personal vehicle.

Overall, Son Espanyolet offers a balanced and enjoyable living experience. Its combination of a friendly community, safety, amenities, and good connectivity makes it an attractive option for those considering a move to Palma de Mallorca.

Whether you're a local, an expat, a young professional, or part of a family, Son Espanyolet provides a lifestyle that caters to a wide range of needs and preferences.

How much does it cost to buy real estate in Son Espanyolet?

If you need a detailed and updated analysis of the prices, rents and yields, you can get our full guide about real estate investment in Spain.

Understanding the cost of buying property in Son Espanyolet involves delving into the various types of residential properties available and the dynamics of the local real estate market.

In Son Espanyolet, the range of residential properties includes apartments, traditional houses, and, to a lesser extent, luxury villas. Each type caters to different buyer preferences and budgets. Apartments, particularly those that are well-located and offer modern amenities, are in high demand.

This demand is driven by both local residents and international buyers, including expatriates, who are drawn to the convenience and lower maintenance lifestyle that apartments offer.

Traditional houses, often with characteristic Mallorcan features, are also sought after, especially by those looking for a more authentic and spacious living experience. These properties often come with the charm of historical architecture, appealing to buyers interested in the cultural and aesthetic aspects of their homes.

Luxury villas, while less common in this urban setting, attract a niche market of high-end buyers. These properties typically offer more space, privacy, and exclusive amenities.

The real estate market in Son Espanyolet is a mix of resale properties and new developments. While historical and traditional homes from a significant part of the market, there has been a growing trend of new developments, particularly modern apartment complexes, which cater to the increasing demand for contemporary living spaces.

Pricing in Son Espanyolet varies widely depending on the type and condition of the property. For apartments, prices per square meter can range significantly. The price for traditional houses and luxury villas, given their larger size and unique features, can be substantially higher.

Over recent years, property values in Son Espanyolet have seen a steady increase. This trend is attributed to the area's growing popularity, its blend of urban and residential appeal, and the overall demand for properties in Palma de Mallorca.

Looking forward, there are factors to consider that might impact future property values. Any upcoming city planning changes, new developments, or improvements in infrastructure could further enhance the appeal of Son Espanyolet, potentially leading to an increase in property prices.

For example, if the city plans to improve public transport links or upgrade local amenities, this could make the area even more attractive to prospective buyers.

Predicting the real estate market in the coming years involves considering several factors. The ongoing appeal of Palma de Mallorca as a destination, the balance of supply and demand in the property market, and economic conditions all play a role.

Given Son Espanyolet's current trajectory and the factors influencing its appeal, it's reasonable to anticipate continued interest and potential growth in property values.

Specific indicators of a potential increase in property value in Son Espanyolet include the sustained interest from both local and international buyers, the ongoing development of modern residential projects, and the area's consistent ranking as a desirable place to live.

Additionally, as the neighborhood continues to maintain its unique blend of urban convenience and residential charm, its appeal is likely to grow, potentially driving property values higher.

Where is the best area to buy a property in Son Espanyolet?

Identifying the best area to buy a property in Son Espanyolet requires understanding the unique characteristics of different parts of the neighborhood.

Son Espanyolet is known for its diverse atmospheres, varying property types, and price ranges, making certain areas more suited to different buyers' preferences and needs.

In Son Espanyolet, the atmosphere varies significantly from one part to another. Some areas offer a bustling urban vibe, with streets lined with cafes and shops, while other parts are more residential and tranquil, providing a quieter living environment. This variation in atmosphere directly influences the types of properties available.

For instance, the more urban areas tend to have modern apartments and renovated older buildings, catering to those seeking a vibrant city life.

In contrast, the quieter, more residential parts are where you might find traditional Mallorcan houses, offering more space and often a private garden or courtyard.

Prices across Son Espanyolet also fluctuate depending on the location and property type. Areas with newer developments and modern amenities tend to command higher prices, reflecting the demand for contemporary living spaces.

Conversely, areas with older properties or those further from the neighborhood's center might offer more affordable options, though these might require some renovation or lack certain modern conveniences.

Regarding up-and-coming areas within Son Espanyolet, certain parts are witnessing a surge in popularity, especially those undergoing revitalization or where new developments are taking place.

These areas can offer exciting opportunities for buyers, especially those looking to invest in a property that might appreciate in value as the neighborhood continues to develop and attract more attention.

When looking for a property in Son Espanyolet, it's essential to consider your personal preferences and lifestyle needs. For those who enjoy being in the heart of the action, areas closer to the neighborhood's main streets and social hubs would be ideal.

These areas offer easy access to cafes, restaurants, and local amenities, making them perfect for a more dynamic lifestyle.

However, if you prefer a quieter, more residential setting, then exploring the parts of Son Espanyolet that are set back from the main thoroughfares would be a wise choice. These areas provide a more relaxed environment, often preferred by families or those seeking a peaceful retreat within the city.

On the contrary, there are areas within Son Espanyolet that might not be advisable for certain buyers. Parts that are still in the early stages of development or undergoing significant changes might not yet offer the stability and established community feel that some buyers seek.

Additionally, areas that are too far from essential amenities or public transportation links might pose challenges for those who rely on these services.

Here is a summary table to help you visualize better. If you need more detailed data and information, please check our property pack for Spain.

Area	Atmosphere	Property Types	Price Range
Urban Areas	Bustling, vibrant, close to cafes and shops	Modern apartments, renovated older buildings	Higher
Residential Areas	Quieter, more tranquil	Traditional Mallorcan houses, some with gardens	Variable, often more affordable
Up-and-Coming Areas	Developing, revitalizing	Mix of new developments and older properties	Moderate, potential for appreciation
Outlying Areas	More remote, less access to amenities	Older properties, possibly requiring renovation	Lower, more affordable

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Is there a strong rental demand in Son Espanyolet?

The rental market in Son Espanyolet is indeed vibrant, characterized by strong demand.

This demand can be attributed to various factors, including the location's desirability, the lifestyle it offers, and its appeal to a diverse range of tenants.

In terms of rental types, Son Espanyolet experiences demand for both short-term and long-term rentals, but the nature of the demand varies. Short-term rentals are particularly popular among tourists and visitors who are drawn to Palma de Mallorca for its culture, climate, and attractions.

On the other hand, long-term rentals are sought after by professionals, expatriates, and families who wish to settle in the area for an extended period.

The target demographic for rentals in Son Espanyolet is quite broad. For short-term rentals, the typical tenants are tourists and short-term visitors, including those visiting for holidays or short work trips.

These tenants often look for properties that offer convenience, easy access to local attractions, and good transport links.

For long-term rentals, the tenant profile includes young professionals, expatriates working in Palma, and families. These groups tend to prioritize factors like proximity to schools, workspaces, and local amenities.

The types of properties in demand also vary with the rental type. Short-term tenants usually prefer furnished apartments that are ready to move into and located in areas with easy access to the city's attractions.

Long-term tenants, particularly families and professionals, often look for unfurnished or semi-furnished apartments and houses that offer more space and facilities like a home office or a garden.

In Son Espanyolet, certain areas are more popular for rentals. Areas close to the city center or major attractions are preferred for short-term rentals due to their convenience and vibrancy. For long-term rentals, quieter parts of Son Espanyolet that offer a more residential feel are often more desirable.

To reduce vacancy rates, landlords can focus on providing amenities that are in high demand. This includes high-speed internet for professionals working from home, modern appliances, air conditioning for the warmer months, and, if possible, some outdoor space or access to a pool.

Regarding potential returns on investment, properties in Son Espanyolet can offer attractive yields, though the exact numbers vary depending on the property type and location.

Generally, well-located properties that cater to the needs of the target demographic can expect a healthy return.

Short-term rentals often command higher per-night rates, but they also require more management and can have higher vacancy rates off-season. Long-term rentals might offer lower monthly rates but provide more stability and consistent income.

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Is it easy to buy a property as foreigner in Son Espanyolet?

Before we answer the question, please know that we have an article dedicated to the experience of buying real estate as a foreigner in Spain.

Buying property as a foreigner in Son Espanyolet, Palma de Mallorca is relatively straightforward, but there are specific considerations and processes that foreign buyers should be aware of.

Firstly, it's important to note that there are no overarching regulations or restrictions specifically targeting foreign buyers in Spain. This means that, in general, foreigners have the same rights as Spanish citizens when it comes to purchasing property.

However, non-EU residents may need to obtain certain documentation, such as a foreigner identification number (NIE), which is essential for any property transaction in Spain.

The purchasing process in Son Espanyolet typically follows these steps; identifying a property, making an offer, signing a preliminary contract (contrato de arras), and finally, signing the deed of sale (escritura de compraventa) in front of a notary.

This process involves various legal and administrative steps, including due diligence to ensure the property is free of debts or legal encumbrances, and ensuring all necessary taxes and fees are paid.

One of the primary risks associated with property investment in Son Espanyolet, as in any property market, is the potential for market fluctuation. Prices in real estate can go up and down based on economic factors, local development, and demand.

Additionally, foreign buyers should be cautious about potential language barriers and differences in legal and administrative processes.

There are classic pitfalls and common mistakes that people, particularly foreigners, face when buying property in Spain. These include neglecting to conduct thorough due diligence, misunderstanding tax obligations, and underestimating the importance of legal advice.

For instance, it’s crucial to check for any outstanding debts tied to the property, as unpaid taxes or community fees can be transferred to the new owner.

Working with a local real estate agent or lawyer is highly important. They can provide invaluable guidance on the local market, help navigate the legalities and administrative processes, and offer insights into specific local practices and regulations.

Their expertise can be particularly beneficial in overcoming language barriers and ensuring that all legal requirements are met correctly and efficiently.

Common exit strategies for property investors in Son Espanyolet include selling the property for capital gain after a period of appreciation, renting it out for regular income, or a combination of both. The choice of strategy will depend on individual investment goals and market conditions.

In a desirable area like Son Espanyolet, maintaining the property in good condition and staying informed about the local real estate market can help in maximizing returns when the time comes to exit the investment.