Majorca Property News

Real Estate in Mallorca: confidence rather than crisis mood

 

The turbulent times are over. The market for property in Majorca is back once again offers its consolidation and stable prices. Large investments make the most popular holiday island of the German long-term attractive as an investment location.


As AM-Real Estate and the "real estate Compass" Capital Report, is recovering, the market for 1 after the peak of world economic and financial crisis rapidly. After the market in autumn 2009 and spring of last year had decreased significantly, has a concrete interest in second homes - mainly apartments, villas, mansions and large estate Mallorca - increased again.
provides for recreation in the market for property in Mallorca is currently prone to an end against the economic crisis. As AM-Inmobiliaria tells hardly discounts will be taken. Medium and long term capital gains are even again possible. Daniel Chavarria Waschke it hopes, a director at real estate company Engel & Völkers Mallorca Southwest "After the crises of the last decade, as the Russian crisis in 1998, after 11 September 2001 and now in the ebbing of the great crisis of the market comes back quickly. The prices will stabilize and probably rise soon again, "said Waschke the property of Compass Capital.
The market for real estate in Majorca was like no other in Europe from the economic and financial crisis battered. Prior to the business was booming with real estate in Mallorca over a period of almost ten years, really. Property prices on the favorite island of the Germans exploded normal. Who among celebrities was something in it or who in this time under the motto "Goodbye, Germany" emigrated to Majorca, had to 1999-2008 to deal with price rises of ten percent per year.
Ballermann exclusive - prime locations in Palma arrived at peak at up to 8,000 € per square meter of living space. In other, much sought after locations such as in Puerto Andratx reached villas or apartments in top-quality values of up to 10,000 € per square meter. Prices on this scale were accepted at this stage for granted.
Only with the financial crisis came the big break. Spain experienced a total for the spring of 2007, a fall in prices with reductions of up to 70 percent. While the economic crisis had caused mainly by objects in the mid-range for serious declines, the price level remained in the property sector for top properties virtually unchanged. "Overall, a price recovery is expected in the medium term - depending of course on the world economy and the growth of the economy in Germany," predicts Waschke.
Source: Immonet