Mallorca property for sale - Increasing Confidence

06 July 2010

The Mallorcan property market started to recover in the last quarter of 2009. In the summer months of that year we could see properties reaching the lowest level. Property prices in 2009 have fallen to the levels of 2004, which mean that you can finally come accross prices that are realistic and have been adjusted to market supply and demand. 2007 showed investors prices at least 25% higher and investors that decided to put their money into a spanish property then, are struggling to get their money back.

Investors looking for a real bargain will not be disappointed, particularly when looking at newly built houses, as developers have been more decisive in giving price reductions coupled with the fact that they are in dire need of cash.

Strict planning permission as well a short coastline guarantee Mallorcan property prices on the rise again and we can see that happening already. Buying a property with a sea view has been a guarantee of a big financial return for the majority of investors in the last year, so this trend should continue. Good examples are scattered in the north-west of the island: properties in the surroundings of Deia are attracting more foreigners than ever in history while Puerto Pollensa has on offer the most expensive property in Mallorca.

Valdemossa and its sorroundings have proven that location and scenery cannot be beaten by the economic downturn. Almost half of the residents in this area are of non-Spanish origins and the number of foreigners buying in that area is rising. It is worth noting that this particular place is dominated by lifestyle seekers rather than individual investors, therefore finding a good price even in this market is not going to be easy.

Buyers have been slightly put off by investing in apartments in Palma as London and Paris are being seen as more competitive and promise a better return from rentals.

The weakening euro is encouraging, so whether its a finca in a rural area or a villa on the coast - investors should hurry so as not to "miss the boat". The Mallorcan property market is getting stronger. Current prices make it available not only to cash rich individuals, but also to investors relying on mortgages, who would like to combine a laid back lifestyle with a good return on their investment.

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