Majorca Property News

Mallorca properties further trendy in rising prices

The demand for second homes in exclusive locations in Mallorca continues to develop positively. The current market situation shows an increase in demand by about 30% to the previous year; prices for prime properties have risen in recent months by nearly 20%. The number of properties sold by AM Inmobiliaria could again be doubled.

Foreign and buyers from the mainland continue to trust in the stable property market in the Balearics. In addition to investing in valuable real estate the quality of life in Mallorca is an increasingly important criterion for purchasing decisions. While was mostly German and English that have invested in real estate are Majorca, in the last few months buyers from Austria, Switzerland and Scandinavia have become active.

The prices for top properties in top locations have increased in 2011 by about 15%. Real estate in the medium price segment remained relatively stable in price, the lower segment and the first housing market was once again one-albeit low-price decline observed. The temporary reduction in the VAT rate on new built houses there has not been the hoped-for momentum.

High demand is still for exclusive residential properties in the premium segment. Here an estate in Palma with a retail price of € 47 million is currently the most expensive single property in the portfolio of AM Inmobiliaria. In the commercial real estate the good season has contributed to a calming of the market. The hotel and catering industry reported positive sales. The positive outlook for the next year, can sit up potential investors. The widely anticipated and hoped-for change in government here can once again expect strong growth potential.