The Property Inflation In Mallorca

The Spanish property market over the years has become successful, with many of the properties bought by British and German people. Most buy the property as a second holiday home; others use it as a means to make money for a long-term investment. Of all the places in Spain Mallorca is one of the most popular holiday resorts and amongst one of the most demanding areas for property.

Mallorca property sales have risen with demands increasing every year, making prices a little more expensive than they perhaps were ten years ago. Palma de Mallorca has increased in property prices, due to its busy yet relaxed cosmopolitan environment, trendy restaurants, abundance shopping opportunity and the famous cathedral making it the autonomy city.

Other factors contributing to the increase in Mallorca property sales are the higher levels of tourism, this region of the Balearic Island in particular being the most popular is Spain, and this amounted to 20.2 percent of the total spent welcoming around 9 million visitors each year. This is also partly because of cheap airlines opening up their flight service to Palma, from Liverpool and London Stansted airport.

Overall property business people have seen a healthy increase and have seen a steady demand blueprints on a two bedroom and two-bathroom property with a sea view. Some of the best properties have been bought quickly, before they have even been advertised, photographed and making ti onto the agency website. Buyers can trust that they will walk away with a high quality property based on the positive Spanish estate agency’s’ reputation.

Another reason for the increased Mallorca property sales figures are the affordability of each property. The North of Mallorca is somewhat surrounded by limestone mountainous views, making it a walkers paradise and dubbing it as the ‘other’ Mallorca. Prices range from 250 000 Euros and upwards, with much of the properties offered in need of some restoration and renovation.

The South of Mallorca is more expensive because it is always in demand. The property prices start from 390 000 Euros for a two bedroom new built apartment and 400 000 Euros and upwards for apartments with a sea view. Most of the nicer apartments and houses were snatched up people during the 1980’s and 1990’s making it near impossible to find an affordable apartment to such high standards.

Some of the properties in this region may also need renovation or repairing despite the pricing. These older properties are situated in great locations; however, some of the nicer apartments are far more expensive and are spotted in second-rate locations.

Predictions for the property market in Mallorca for 2008 may see a fall in property inflation, though this is speculation and the fall will be a slow yet steady process. This will only land the Spanish market down gently considering the ten year long boom in prices.



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