Mallorca Property Market Still The Most Stable In Spain

PRLog (Press Release) – Jul 19, 2008 – The Mallorca property market is the most stable in Spain, and one of the most stable in all of Europe according to the Spanish property experts, Spanish Hot Properties.  Mallorca is known for it’s stunning scenery and fantastic beaches and it’s sought after high-end properties.  Recent years has seen property in Mallorca gain an exclusive up market reputation and the demand for Mallorca Property has increased exponentially, especially given the Islands limited supply.

As Spanish Hot Properties Managing Director explains “Demand for property in Mallorca continued unabated throughout 2007, and UK buyers were at the top of the list for overseas buyers. If you are thinking of buying property in Mallorca, you would be joining just over 53,000 EU residents (of which 19,000 are British) now living here permanently, together with an estimated 60,000 second home owners from UK. Mallorca’s permanent foreign community of 16.8% is the largest of any province in Spain with significant numbers coming from Germany, France, Italy and South America. The population of Mallorca stands at 791,000, with that of the Balearics in general at just over a million, an increase of 31% in the last ten years”.

2008 and Mallorca property is still out performing the rest of Spain. Mallorca has not suffered from an over-supply of speculative builds, therefore demand, especially for quality apartments, is in balance with or exceeding supply.  Coupled with the lack of good plots (particularly in the south west) and restrictions on licences, prices for quality property in sought after locations are still likely to rise 7-10%, depending on area.  

Quarterly statistics released by the Spanish Ministry of Housing bear out this trend.  Furthermore, although housing starts throughout Spain had fallen generally by 33-35% in the 2nd quarter of 2007 (and by as much as 64% in Andalusia), planning approvals in Mallorca increased.  

Front line property will remain an excellent investment, even more so if there is direct sea access, as coastal authorities are tightening up.  They are not introducing new laws, simply implementing existing ones.  Quality builds and properties in prime locations will continue to be in demand.

To find out more about the Mallorca property market contact the Spanish property experts Spanish Hot Properties.