As of August 2011, the property prices all over Spain are still dropping at different values for different parts of the country, but the property in Mallorca seems to be faring better than other tourist regions.
The overall drop in price ratio in Spain was at the end of June 5.2% for the last 12 months. However, analysts have concluded that the properties for sale in Mallorca aren’t doing as bad as property on the mainland for example.
The numbers speak for themselves, as places like Alicante have seen a drop in prices that goes as far as 7.7%, Huelva even lower with 8.2% in the last 12 months, whereas the Balearic property market has fallen a mere 4.5%.
In Mallorca in particular, the high end real estate had the least to suffer, due to the fact that there isn’t as much oversupply like in other places, say Costa del Sol. It’s exactly that lack in abundance that hasn’t driven prices down like in so many other places across Spain.
Another reason why the property prices in Mallorca haven’t fallen so much is the fact that there are different nationalities participating in the local real estate market. As you may know, the majority of that is made up of German homeowners who, say experts, are not so affected by the recession.
In contrast, on the Costa del Sol, the majority of homeowners is made up of British citizens, who are eager to sell in order to release capital tied up in their second homes, which leads to an abundance of offers, thus driving the prices down.
Those looking to buy real estate in Mallorca should do so now, advise the experts, as prices aren’t expected to fall any lower, so they shouldn’t be waiting around for a better offer at a cheaper price. And if you’re considering the reason for you to invest in Mallorca property, know that the island is as popular as ever, in the first weekend of August, Palma International Airport, having broken the previous record and handled 160,000 passengers in a single day.
So keep in mind that Mallorca is right now a good place to invest in property, but also remember that only good priced, top quality and greatly-positioned property is selling fast these days.