According to official statistics reported in today’s Mallorca Daily Bulletin (the local English language newspaper), property prices in Mallorca rose by 0.8 percent in February compared to January. This is the figure for resale properties as opposed to new builds.
I agree with their comment that it is too soon to talk about positive signs of a recovery. In fact I think it is actually way too soon for that and we are unlikely to see any real signs of recovery before the middle of next year. However, this figure does illustrate that the property market in Mallorca is more resilient than most places, and is certainly not in free fall as some buyers seem to believe.
If you thinking about buying a property in Mallorca but area waiting for prices to drop substantially, it is worth considering the points made our latest Mallorca property Market Update and also having a look at this post – How to secure the best Mallorca property deals in the current market.
The key point is that the average price statistics do not take into account the considerable variance in prices that is currently being created due to the owners circumstance. Some owners are very eager to sell or have no option and they are likely to negotiate a significant amount off the pre-slow down price. Others who are in a more solid position are quite ambivalent about the situation and know that Mallorca is a good investment, so will not negotiate so much. This is a factor that is not apparent in property markets when times are good!
So, in my view, trying to identify a bottom in prices misses he point and could lead to some fantastic opportunities being missed. If you would like us at Mallorca Property Partners to keep you updated on the best opportunities please email me at kevin@mppsearch.com.
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