Majorca Property News

Real estate crash - Mallorca remains spared

Continued uncertainty and fear of a housing market crash distribute apartment owners from Spain. Any Majorca remains spared.
Everything seemed in order: The plot in the small resort of Moraira on the Costa Blanca as the land was advertised. Investor Bernd Hoffmann bought the 60 000-square-meter plot for a two-digit million amount. But then suddenly the town changed the preliminary plans, the location on the seafront plot of land for green space has been declared: "Now should I do with a smaller site 15 km from the coast to be compensated. Its value is only 15 percent of my investment. They have in the City Hall gemauschelt, "says Hoffmann. Creates uncertainty particularly the coastal Act of 1988, in which up to 100 meters from the sea can not be built. The coastline is often just set, 20 years before houses are built illegally suddenly. The lesson: Who wants to buy in Spain, it should only do so if the plan went through all the instances is.
The initial price in Spain appears after two years of financial crisis tempting: At minus growth and over 17 percent unemployment, many Spaniards can no longer leave the coast and want to sell their house. Banks such as Santander, BBVA and Banco Popular enter objects up to 30 percent below market prices from. Broker CB Richard Ellis, the many British Apartments from Valencia, Murcia and Andalusia has to offer, auction items from 60 000 euros over the Internet. New buildings on the coasts are not only related, because there is no demand anymore. "Around one million properties in Spain are currently empty, what the prices massively downward pressure," says Jose Luis Suarez, real estate expert at the Business School Iese. The prices for new houses are in the year up to 30 percent: "And we expect further price declines," says Suarez.
Tenants plays the Spanish market in the hands
Tenants of the market plays into the hands. The four German merchant family, for example, in Sant Cugat near Barcelona lives near the beach, was the rent from 1700 to 1400 Euro press. "Now we pay in comparison with Germany is still too much, but we feel that we can no longer be completely ripped through," says Herbert Kaufmann. High are the charges: Its terraced garden with a mini, like many coastal real estate, no heating, but only an air-conditioning, in winter the warm air over electricity - an expensive pleasure. "Had we not professionally bound, we would have long gone," says Judith Kaufmann.
Few buyers, much uncertainty
Like many German businessman complain permanent or part-time residents about high prices, poor quality, and the uncertain legal situation. "The worst situation is currently in Valencia, Murcia and Andalusia," says José Ortega, a lawyer for victims of construction in Spain. But many homeowners may be closing their suitcases packed yet: Hardly anyone is buying - and the market has become such a bad reputation that even foreigners, apart from Russians, away. In the province of Granada in Andalusia went around the property purchases by foreign tourists last year by nearly 74 percent. "Above all, the British have now fed up, and also among the Germans are almost only seller," says Ortega. Spain loses because of its high prices and overall attractiveness. Until April, 18 percent fewer British and German ten percent less to Spain than in the same period last year.
Mallorca remains spared
Only in Majorca is no massive exodus mood arisen. By April of the holiday market lost only five percent, the excess supply of apartments for rent is limited to a few zones. "On Mallorca, the coastline of many years ago stipulates otherwise than on the mainland are no demolitions of private homes are planned. The demand is only in the middle segment caved to 300,000 euros, the luxury sector does, "says the lawyer that live there Tim Wirth. Only in the row in the settlements east of the island, many newly built objects auctioned or Billigstpreisen delivered.