Majorca Property News

Mallorca real estate: After the crisis once again stable prices


Mallorca after the crisis on a consolidation course. Largest Balearic island, with more stable real estate prices. Large investments to secure the island as a long term investment location.

 The real estate market on the popular resort island of the Germans, in Majorca, has passed the zenith of the impact of the financial and economic crisis and is on a consolidation course. After the market last fall and was significantly decreased in the first months of 2009 have now become the interest and the actual demand for second homes, whether Country houses, apartments, villas, mansions and large estates, revived.
For relaxation, the property market in Mallorca currently provide confidence that the general crisis is nearing its end, and the insight that can hardly expect further price discounts. On the contrary, medium and long term capital gains are again likely. "After the crises of the past decade, as the Russian crisis in 1998, after 11 September 2001 and now in the ebb of the great crisis of the market comes back quickly. Prices are stabilizing, and will probably soon rise again, but it is unlikely that we are the exceptional price of the last ten years will again experience. "
The last decade showed an exceptional price explosion. Thus, the real estate prices between 1999 and 2008 were increased on average by about 170 percent. In prime locations in Palma are made up to 8,000 euros per square meter of space in prime locations such as Puerto Andratx villas or apartments in achieving top-quality peak of 10,000 euros per square meter of living space. In contrast to objects in the middle layer has the effect at which financial and economic crisis, price falls of about 20%, is felt in the high-price segment is no loss of value. "Total is seen a recovery in prices expected in the medium term - depending of course on the global economy and the development of the economy in Germany."
For as soon as the general economy stabilized again, the advantages of the island once again reinforces perceived. Mallorca itself is continuing to make investments in infrastructure to stay on the island even more comfortable and practical. These are the planned expansion of the airport until 2012 and the continuing improvements in road transport network and contribute.
Besides the well-known for many years, prime locations in the south and southwest of the island such as Puerto Andratx Portals and develop new locations on the island. The preferred areas for new investment are in Palma Sat Gerreria, Santa Catalina and the new through the convention center, especially in the center of interest that stepped Portixol. In the southwest, which is greatly appreciated as "El Toro" well-known area by the marina of Puerto Adriano. The plant will be built just under the leadership of designer Philippe Starck, who is known for its minimalist design and the combination of aesthetics and functionality. Completion is scheduled for 2010. In Son Vida, which is steadily driven urbanization, is the "chameleon" realized. The 21 million euro project takes its name from the futuristic and unique lighting system that achieved in conjunction with a high glass façade, unique effects. Initial investment especially with the east coast Santanyi, Porto Colom, and Ses Salines Son Macia and the north coast offer to Colonia Sant Pedro, but also the old town of Capdepera is a good investment with investment opportunities.