The term “bargain property” is a slightly ugly one for estate agents in Mallorca. For a long time the island has enjoyed a privileged status as one of the most desirable locations in the world, and property prices have increased solidly and continually for many years.
I agree it is a rather down-market “salesy” term and not best suited to the property market here, and the desirability of property in Mallorca has not diminished at all. However, in an environment where properties are generally negotiable when this was not previously the case, and where there are some good properties in good areas showing substantial reductions, the term bargain is reasonably apt, and it is clearly what most active buyers are looking for at present.
Having said this, there seems to be a degree of misguidedness amongst some buyers as to what represents a “Mallorca property bargain”. Many are judging opportunities solely on the reduction in asking price and are discounting properties that have not been reduced by a substantial amount.
This is a rather superficial way of judging the true value of a property and runs the risk not only of missing the best opportunities, but even worse could land the buyer with a “duff” investment I.e. one that does not appreciate significantly even when the economic environment does, eventually, start to improve.
This is for the following reasons:
- Some properties are being put freshly onto the market at very competitive levels. So there is no reduction to show but the asking price is low from the outset in comparison with similar properties in the area.
- As a generalisation, the owners of the better properties in the best areas will know that they have a good long-term investment and will tend to reduce the value by smaller amounts (if at all). However, it is these properties that will escalate most quickly and by the biggest percentage when property markets turn around from the current slowdown. So a bigger saving on a property in a less desirable area does not equal a better investment – it could well be the opposite.
- Some owners choose not to reduce the asking price, but will still negotiate a substantial reduction if they receive a serious offer. Others might not. So our advice is always to focus on the properties that you find most attractive and, if you are not able to agree a price that you are comfortable represents a good investment (a much safer and more sensible terminology than “bargain”), then you must be prepared to walk away.
Overall it is important to realise that Mallorca is proving resilient in the current global recession when compared with other location in the Mediterranean and with other prime international property locations. Take a look at Dubai for example, or Eastern European countries that were previously seen as great places to invest. Mallorca has held up far better than most, if not all, the investment alternatives.
So buying any good property in Mallorca at the current time and, therefore, at a favourable price, even if it is not the kind of dramatic reduction seen in many other areas including the UK, is likely to prove to be one of the best property investments you could make.
You could readily argue that all such purchases are bargains as one thing is certain. When the turn-around does come the demand that is currently on-hold for Mallorca properties will come back very quickly and prices will start to escalate again.
All the properties we list on this website as “Mallorca property bargains” are good properties in good locations. They are selected from properties that our estate agent partners across this island highlight to us as being interesting. Some of them are new or in excellent condition and others require modernisation or refurbishment, but all have good investment potential. So these will give you an idea as to what is available and the kind of price reductions that are being made in some instances.
Please note however that we are only listing properties that have been reduced in price in the “bargains” section, and many of the other properties we have selected to list also represent exceptional deals and potentially equally good investments.
If you are interested in finding the best properties email us with your details and we will pick out a selection based on your criteria.
The following articles might also be of interest to you in this context:
- Feb ‘09 Mallorca Property Market Update
- Mallorca property prices levelling out?
- How to secure the best Mallorca property deals in the current market
- How to choose the right area for your property in Mallorca
- How to secure the best Mallorca property deals in the current market
