Majorca Property News

Real Estate Mallorca: Prices are not going cheaper - the time of the bargain hunter is over.

The real estate agents on Mallorca explain the price adjustments for disabled: it is no longer cheaper. Also, British buyers are – thanks to weak euro - active again.

The sales prices of availible objects now for sale usually have no more range. Price adjustments are already made. Many objects whose prices have not proved employable, have been taken off the market. The time for bargain hunters is over - Property owners who had to sell urgently due to money problems have already done that last year. Now it's back up.The official statistics on domestic and international real estate market in the Balearic Islands have become after two years of decline back to growth. Thus, in April, according to figures from the Balearic Islands Statistics Institute to almost 18 percent more homes sold than in the previous month. And numbers of the government in Madrid in this direction. The prices, according to a study by the Spanish banking giant BBVA completed the correction in the Balearic Islands, with an average reduction of 13 percent since 2007 - in contrast to other regions in Spain.The Balearic contractors will have sold by the end of 4000 completed dwellings. That's about 1000 housing units more than one still at the beginning - had predicted - and in the middle of the building crisis. Due to the rising demand, the stock of unsold new flats will reduce the next year to 3700 instead of the previously projected 4700 residential units. Given this outlook, the association president of the Balearic Contractors, Gabriel Oliver, reviewed the situation confidently. "The development of home sales in the past seven months for us is extremely positive and our expectations," said Oliver. The President believes that the stock of unsold new apartments by mid-2011 will be melted.We are looking for either an apartment to € 200,000 - or a town house at increasingly higher demands on location and facilities and significantly more visits before the purchase. The demand in high price segment is so stable because, given the turbulence in international financial markets attractive real estate in Majorca in a prime location as a safe investment system is in greater demand.Another factor: demand from Great Britain. This market is recovering. The weak euro and the strong pound encourage investment from the UK and other international markets.The average room for negotiation between the original and final sale price is now back at well below 15 percent. Even in boom times, but already 5 to 10 percent have been negotiated. All real estate entrepreneurs report claiming of discount hunters, the massive discounts. But especially in apartments, purchase prices are now realistic - the comparison easier with other for sale items and discount hunters come too late.Concern are still some banks. Where loans are required to finance the banks and demand less significantly more collateral. There is considerable demand more capital than before the crisis. In too many cases the banks are ultimately remained sitting on properties of defaulting creditors.