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The Mallorca Property Market Shows No Signs of Slowing Down


The Mallorca Property Market Shows No Signs of Slowing Down

 With acting Prime Minister Mariano Rajoy finding it impossible to get support to form the government in Spain, it looks like the country is headed for its third election in just a year. So the political stalemate in Spain continues. If you’re looking to sell a beach property in Mallorca, Spain for whatever reason, and are worried by the recent turn of events in Spain, do read the rest of the article.

Mallorca is a beautiful island in the Balearics has gone from strength to strength recently as one of the top overseas property destinations in Europe. It has some of the best hotels and restaurants you will find, a warm and friendly local population, an open and diverse culture and some of the finest beaches in the continent.

Mallorca attracts a number of foreign buyers looking to purchase second homes or holiday homes in Spain. Britons and Germans are among the biggest buyers here, as are Scandinavians.

There’s been a lot of buying activity in the housing market in Mallorca since 2014. 2016 has been a frenetic year as well, despite the Brexit referendum and the political deadlock in Spain.

Knight Frank reports a 21 percent increase in the number of foreign buyers of properties for sale in Mallorca, Spain. There’s been a 5 percent increase in property prices this year. So it does look like the property market in Mallorca has been quite resistant to external problems.

 In fact, the market has weathered the storm very well. Many real estate experts in Spain thought that the Brexit referendum would lead to a collapse of British interest in properties in Spanish regions such as Costa del Sol, Balearics Islands, Canary Islands, Valencia and Costa Brava – but that hasn’t happened as yet.

If anything, there’s been an increase in the British interest in Mallorca and other overseas property hotspots in Spain following Brexit. Will Besga, a Mallorca-based lawyer tells the Financial Times, “Brexit hasn’t slowed the demand from British buyers; on the contrary, it seems to have so far produced the opposite effect, as having a base in a safe European country like Spain, and particularly Mallorca, is very attractive.”  

Mallorca is one of the best planned regions in Spain, where the land is limited and the number of properties available are in short supply. This combined with the huge demand from foreign buyers means that properties in Mallorca will always be expensive.

 Another big thing that goes in the favour of Mallorca is the fact that it is one of the safest regions in the world. Terrorism is unheard of in this part of the world, which makes it so different from North Africa’s tourism hotspots such as Sharm-el-Sheikh in Egypt.

Hans Lenz of Engel & Völkers explains, “Nobody is 100 percent safe these days, but it’s a growing concern and we’ve had very tight security over the past few years because this is [where] the Spanish king [vacations].”  

 However, there are some like Mark Harvey, head of Knight Frank’s office in Spain who advocate caution. Mr. Harvey says, “I would probably err on the side of caution than be bullish. I’d say the second-home market is relatively safe but we’ve yet to understand what the ramifications of Brexit are … I don’t think we want to be under any illusions that this is going to be plain sailing.”

Regardless, the property market in Mallorca looks very alluring right now and that’s where everyone wants to be.

 

 




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