Latest Figures Show Some Resilience for Balearic House Prices

Mallorca (I-Newswire) August 9, 2011 - Whilst no Spanish region can sing from the rooftops in delight, latest Government and TINSA (valuation consultancy) figures for June 2011 clearly show the Balearics faring better than mainland Spain. The Government has Balearic prices down 4.5% on June 2010 versus a 4.8% fall for Málaga whilst TINSA shows Balearics and Canaries down 7% versus a steeper 8.7% for the Mediterranean coastline. Mallorca Sotheby’s International Realty explains the Island’s resilience.

Stephen Dight, Managing Director of Mallorca Sotheby's International Realty, comments, “Mallorca has not suffered as much in the downturn, especially at the top end of the market where there is simply not the same oversupply as you would find on for example the Costa del Sol. Official figures are skewed as they only deal with the average property, things are very different in the upper echelons where price reductions have been far less marked. Sometimes clients approach us with an ill-advised perception that they can pick up bargain property in Mallorca. It's simply not the case. Once we have a buyer's specific requirements we can pretty much show them every house that fits that criteria in one day - there just isn't an abundance of quality property on the market and therefore any need for huge discounting.”

Stephen continues, “Another factor is the different nationalities participating in real estate here. Over the years Germans have made up the majority of foreign homeowners in Mallorca and their recession is behind them so there is not a huge supply of motivated sellers on the Island. Contrast that with the Costa del Sol where over 50% of the foreign homeowners are British. Many of them are now hugely motivated to release the capital tied up in their second homes in order to fund their businesses and their interests back in the UK at a time when the British banks have effectively stopped lending. As sterling has depreciated, these vendors are prepared to slash prices in the knowledge that the exchange rate will protect them against huge losses. This scenario has not existed in Mallorca."

Stephen concludes, "Most buyers believe, as do we, that prices in Mallorca have reached the flat line of the U and will fall no further. If a suitable property becomes available there is little benefit to be gained from waiting any longer to buy. At Mallorca Sotheby's International Realty we are now genuinely busy but the market is not on fire to the extent that anything will sell. Only correctly priced top quality, not necessarily top priced, homes are selling and they must be virtually faultless in terms of their presentation and location.”

On the Market in Mallorca:

Ref 5214 - Calvia, Southwest Mallorca
Thoughtfully and tastefully renovated townhouse retaining plenty of original Mallorquin character and charm. The open plan living and dining room with cosy stove and curved ceiling forms part of the original house which dates back 500 years. Upstairs are two double bedrooms, a large bathroom and an office area. To the exterior is a manageable landscaped courtyard garden. Plans are available to extend the house by a further 100m².
Two bedrooms, one bathroom, built area 152m², plot 297m².
Price 385,000 euros
Contact Mallorca Sotheby’s International Realty on phone: (+34) 971 67 48 07, email mallorca@mallorcasir.com or visit www.mallorcasir.com

Ref 4140 – Sol de Mallorca, Southwest Mallorca
State of the art waterfront property offering everything from a designer interior to magnificent sea views and the latest domestic gadgetry. The elegant atrium entrance looks down over the split level open plan living area out onto the teak terracing and heated infinity swimming pool beyond. On the upper floor is an en suite master bedroom with walk-in wardrobe and sea view terrace alongside two further en suite guest rooms both with bay views. Property highlights include a striking Dada Italian kitchen, Bose surround sound TV and projector, fitness centre, sauna, temperature controlled wine cellar, under floor heating and outside heated Jacuzzi.
Three bedrooms, three bathrooms, built area 280m², plot 1,200m².
Price 3.95mn euros
Contact Mallorca Sotheby’s International Realty on phone: (+34) 971 67 48 07, email mallorca@mallorcasir.com or visit www.mallorcasir.com

-ends-
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About Mallorca Sotheby's International Realty:
About Mallorca Sotheby’s International Realty - Mallorca Sotheby's International Realty offers a collection of luxury homes, estates and properties for sale throughout the Balearic Island of Mallorca.

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