Latest News : Easter in Mallorca

The Mallorca Property Market is still slow and it doesn’t look that anything is going to change that for the next few months at least. The Easter Holidays are proving to fairly quite both in terms of the number of visitors to the island as well as thse specifically here to view properties. Asking prices across the board have still not dropped across the board but again, neogtiated prices have decreased, the local radio reporting that both new build and resale price / meter decreased in the last quarter.

The segment most effected by all this is the “middle of the road” where most of the uncertainty lies. Under 300K there is some movement and there is more movement at the lower end of this scale and also, the high end of the market, although not buoyant, is still trickling over as these buyers are somewhat less effected by the overall world economic climate (and also, there are those that are making more money than ever of the back of all the stock market uncertainty!).

In terms of prices, there are the odd “bargains” to be had as usual. A recent report suggesting as much as 50% in some cases, quoting a property for sale in Mallorca recently reduced from 15 million to 9.5 million … my initial reaction to these sorts of figures being: Maybe it was over valued to begin with.

The Scandinavian and Eastern buyers are the strongest overall with the UK buyers being those that have decreased the most.

The moral of the story: Base your search on your requirements and what you want out of the property and be reasonable with your expectations. Buying a second property / real estate in Mallorca as a second home should be seen as a long term investment with a clear goal in mind: owning a holiday home. Don’t expect to be able to buy it today and sell it at a profit tomorrow, this has almost never been possible here simply because of the costs of purchase and the costs of sale.