Are you looking to sell your property in Majorca, Spain? Well, you won’t be the only one, because there are a number of British expats who have been spooked by the forthcoming Brexit referendum and the political uncertainty in Spain. But should you really be concerned?
The Spanish election of December 2015 threw up a really confused mandate because of which no party was able to form a government. So, last week, the King of Spain, Felipe VI was forced to dissolve the Spanish parliament and call for a new election, to be held on June 26.
It is ironical that the Spanish election will be held only 3 days after the Brexit referendum in Britain. Both events are likely to have far reaching consequences for British expats living in Majorca.
What about the Spanish economy? The Spanish economy has done remarkably well in spite of the political uncertainty in the country. The economy has been resilient, and even buoyant, although there is nobody in charge of Spain right now and no real decisions have been taken because of the policy paralysis at the centre for over 6 months.
Unemployment fell to a new low as the number of Spaniards without a job fell by as much as 83,600. The Spain Markit Composite PMI index rose to 55.2 in April, beating estimates made by most analysts. The service sector has been very bullish as well.
Indeed, the Spanish economy shows great momentum as we head into the June 26 election, even though opinion polls suggest that no party will win a majority this time around as well. Caretaker Prime Minister Mariano Rajoy said that Spain’s economy would grow by almost 3 percent in 2016 if the momentum is sustained. The official forecast talks about a 2.7 percent expansion this year, and European Commission expects a growth of 2.6 percent.
So what does this mean for you if you have a home to sell in Majorca? Majorca is one of the most popular property hotspots in the world which is compared to the Cote d'Azur in France.
There is a huge interest from international investors in Majorca. British and Germans are the most prominent buyers here. There is a lot of interest from China, Russia, Belgium, Sweden, Denmark and North America as well.
Majorca was never really affected by the recession of 2008 and property prices here held steady, even through the worst years of the economic crisis in Spain. Now is the time to capitalize as property prices in Majorca have witnessed a steady growth since 2014.
According to Jelena Cvetlovic, European associate network manager at Savill, “Mallorca is a favourite with British, Swiss, German and other northern European buyers. But Asian buyers, with no tradition of buying leisure properties, have largely been absent while Russians tend to prefer the south of France – it is better served by flights from Moscow and they are able to mix with peers who have already bought there.”
“Prices have bottomed out and confidence is returning to the market. It doesn’t suffer from the overdevelopment that went on in other parts of Spain, it is well served with flights from Europe, healthcare is superlative, there are nine international schools. It is quite simply a place where wealthy people like to live,” Ms. Cvetlovic adds.
There are flights to Majorca from every major city in Europe. Majorca’s Son Sant Joan is an impressive airport. Every major UK budget airline, whether it is Ryanair, Monarch or EasyJet, flies to the Son Sant Joan airport. The foreign interest in Majorca continues to be strong and properties here will do well, regardless of what happens in June.