Mallorca Property Partners

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I have heard property prices in Spain are falling. Is it wise to invest in Mallorca at this time?

Answer

Property market have fallen, and continue to fall at present (March 2009) throughout the World. The Spanish market has been particularly badly hit as, beyond the recession, there is an oversupply problem in many coastal areas where developers have simply built far to much too quickly. This is causing many problems which are only exasperated by the current financial crisis.

However, it is important to recognise that the property market in Mallorca is distinct from that of mainland Spain. Mallorca has always been more protected and recently planning regulations have been tightened still further.

Furthermore, Mallorca is a small island with a limited housing stock. It is also universally regarded as one of the most desirable places in the world to own property. So demand for good properties in Mallorca will always outstrip supply and this demand comes from all parts of the world, meaning the Mallorca Property market is not reliant on the prevailing economic situation in any one country or region.

So whilst the property market in Mallorca has been affected by the crisis, it remains one of the best places to invest in property and the current market offers some prices and deals that would simply not be available in a normal economic environment.

With this in mind, for those in a position to invest in property in Mallorca this year and most likely the early part of 2010 are excellent times to invest. We are seeing this currently with more activity in the marketplace from savvy investors who recognise that this is the case.

Further information

We have written a number of articles with more depth on this subject and our latest Mallorca Property Market Update is also worth reading to understand the property market here in more detail.