Buying property in Mallorca has all the signs of being a hot topic in 2011. Our forthcoming market report will explain why. We share some of the analysis ahead of next week’s release.
Our half-yearly real estate market reports aim to provide buyers and sellers with an accurate, objective appraisal of the property sector in key locations across Spain. To complement the opening of our Mallorca real estate office in December, Lucas Fox has added a market report on buying property in Mallorca to its suite of publications being published every January and July.
Growing interest in buying property in Mallorca
Lucas Fox Regional Director Rafael Calparsoro explains why Mallorca has seen growing interest in the second half of 2011: “Demand is picking up because prices have dropped some 25% since 2009, making high-end properties more attractive. Last year, we saw more solid and consistent demand at the high-end of the market with prices less vulnerable to change. Nevertheless, one can still get good discounts on high end properties.”
The growing interest in Mallorca properties is particularly obvious when looking at the Google search results for the term “Mallorca villa”.
Here you can see the usual downward trend once the summer peak has passed, but interestingly, there is a turn up in December. To see how this trend is progressing into 2012, we have embedded below a real-time trend graph from Google. Here you can see that the high-end market term Mallorca villa is becoming increasingly searched for into the new year, while interest in the broader term Mallorca property is decreasing. Google reports an increase of 40% in the number of people searching for the term “Mallorca property sales” during 2011.
Foreign investors buying property in Mallorca
For the latest period available, the Spanish Ministry of Public Transactions reported an increased level of foreign investment in real estate for Q3 2011. Buying property in Mallorca and Ibiza was one of the top five areas seeing an increase in property transactions.
“Just like Ibiza, Mallorca attracts high-end buyers from the UK and Europe, especially Germany, France, Switzerland and Scandinavia. There is increasing interest in Mallorca from buyers from the USA, Russia and the Middle East”, said Alex Vaughan, Lucas Fox Director.
All signs point to strong interest in buying property in Mallorca, replicating the successes of the Ibiza real estate market in 2011. Subscribe to our blog now to be alerted when our Mallorca real estate market report is released, or contact the Lucas Fox Mallorca office to find out more about buying property in Mallorca.