Mallorca Property Partners

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Are property prices negotiable in Mallorca, and are there property bargains to be had in the current environment?

Answer

Obviously there have been some major changes in the last 18 months in property markets the world over. Mallorca is a strong market relative to most others and this is reflected in the fact that prices have not dropped here as much as they have in most other international locations.

Regardless of this though the market has slowed considerably. Price has dropped overall (there are no reliable statistics as to how much but we estimate the figure is around 15% on average since the global economic crisis took hold).

Average price can be misleading however as there is a great variety of in Mallorca, both in terms of the price and of types of properties and different locations. To a great extent the basic rules still apply. If a good quality property is on a prime location and sensibly priced there is likely to be more interest and less tendency to for the owner to negotiate. If a property needs work, is in a less desirable location, or is at a high price relative to other comparable properties in the area there is like to be more scope.

In the current market there is an additional factor that is often more difficult to assess. If an owner is under pressure to sell they may drop the price substantially, and if the keep the asking price the same, they may be prepared to drop the price considerably in the face of a solid offer.

Conversely if the owner is not under pressure, and / or the property can be rented out and earn a good income until markets improve, the owner will be cognisant that they have a good long-term asset in Mallorca and will be less likely to rush a sale and accept low offers.

These things are best judged on a case-by-case basis. Mallorca Property Partners will assess each property and give you impartial objective advice when you want to make an offer and throughout the negotiation.

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.