Author: Phillip Booker Added: September 27, 2008
Copyright (c) 2008 Phillip Booker The Property Market in Mallorca was expected to take a big dip in sales during the summer of 2008, but Estate Agents throughout Mallorca have reported a brisk business. Mainland Spain has seen Estate Agents shutting through lack of trade, but here in Mallorca the business of selling property has remained steady. Whilst the fluctuating Euro has created problems throughout Europe, Mallorca can boast of a steady demand. What generally happens to the properties for sale in Europe during the summer months is that potential buyers become holidaymakers. Their interest in viewing is overridden by their desire to have a holiday. In comparison to last year most Estate Agents in Mallorca have been expecting a serious reduction in both viewings and sales, but they have been pleasantly surprised. The conclusion we can therefore make about property for sale in Mallorca is that this area of Europe can be deemed as a property hotspot. Whilst demand is down elsewhere Mallorca stands firm. The beauty, the weather, the cosmopolitan mix and the integration of the much needed 'infrastructure' in new complexes has kept Mallorca head and shoulders above the competition. Even those cheaper properties in eastern Europe have not steered potential buyers from ditching Mallorca as a destination to buy property. Since the 1950's Mallorca has been a major holiday destination, and consequently because of its natural beauty people have continued to buy property. As we study the property sales in Majorca today we see a buoyant property market, when the rest of Europe is in a slump. What does this mean? It means that Mallorca is in demand. If you buy property in a new resort elsewhere in Europe there is a possibility that in ten years your property value will fall. Whereas the buoyancy in Mallorca alone suggests that prices will either remain steady or show a steady increase. If we compare an average villa price with mainland Spain over the last year we will see this demand and buoyancy principle in action... Although I will accept the uncertain exchange rate has also affected the results, the underlying factor remains that property prices in Mallorca has remained stable. A villa on mainland Spain selling at 320,000 Euros a year ago is now selling at 260,000 Euros. Whereas the same priced villa in Mallorca has actually increased by 5,000 Euros. So here is the crunch decision... Do you go chasing the possibility of earning 60,000 Euros once the property market returns and buy on mainland Spain; but also face the possibility of another slump and lose money. Or... invest in property in Mallorca and see the value of your property steadily increase with time and reach the 60,000 threshold without panic within 5 to 10 years? An astute investor of course would take the guarantee of a gradual increase and buy property in Mallorca. If you are up for a gamble and include a risk of an unstable property market then study the European property market and stab your pin.
--- Mr. P. Booker Senior Property Adviser (Mallorca Division) Please visit our Mallorca Pages... Property in Mallorca
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