FAQs: Mallorca property market & buying process

If your question is not answered below or elsewhere on our site, please email us and we will get back to you.

For FAQs on MPP, please see here:

Mallorca property market

What is the current state of the market, are prices still falling?

As of April 2012 the Eurozone crisis, restrictive finance and general unease on the strength of the economic recovery continue to put pressure on property markets in most parts of the western world.

The property market in Spain has suffered additional pressure as a result of the over development of some regions, most notably the Costas.

The result has been a significant slow down in sales and a resulting drop in prices. Estimates vary as to how much and, in practice, it varies a lot according to the type of property and location.

Mallorca has fared slightly better than most parts of Spain as it has not been so heavily developed and attracts wealthy buyers from all parts of the world, in particular from Scandinavia, Germany and the UK.

Consequently, while prices here also have certainly fallen and remain under pressure, it is likely prime location properties in Mallorca will find a price floor more rapidly than many others.

There is some evidence that this is already happening where owners of good properties are setting realistic current market prices. However, some owners are steadfastly sticking to pre-crisis price levels, and others, under financial pressure, are willing to set very low prices to sell quickly.

This means there is a greater variance in the price of like-for-like properties than there would be in a normal market environment. So, while there are some very good deals on offer it is important to understand which are likely to represent the most solid investments.

Our recommendation is to look for good opportunities with quality properties and not, necessarily, be led away from this by “bargain discount” deals.

“Quality” in this context means mid to high-end properties in prime locations. The prime locations in Mallorca are those that benefit from long-established international demand.

Please also see our latest Mallorca property market update

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How negotiable are prices?

In the current market the amount by which owners will negotiate varies considerably – more than it would in normal market conditions. This is because owner who are not under financial pressure and who own good quality properties, might be reluctant to sell at a depressed price level. These owners might stick to price levels that are not currently competitive.

Conversely, owners who are under financial pressure may sell below even current market rates to sell quickly. The fact that many properties in Mallorca are second homes exaggerates this, as they are not an essential item to the owner.

Our advice is to judge prices on a case-by-case basis and to recognise that it is the relative price that is important, not the size of the discount off asking price.

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What is the legal process for buying a property in Mallorca?

It is important that you understand the buying process in Mallorca, particularly the costs and the key steps in the legal process.

You can see a concise summary of these here: The property buying process in Mallorca and Purchase costs

Please don’t hesitate to contact us if you have any more detailed questions.

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How much are the purchase costs for buying properties in Mallorca?

You should allow between 10% and 13% of the purchase price to cover taxes and associated buying costs.

This subject is covered in detail here: Purchase costs

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I see the same properties on different websites, do all the agents have the same properties?

It is more commonplace in Mallorca for properties to be listed with several agents. And Mallorca estate agents often collaborate behind the scenes, so you may well see the same property on several web sites.

It is also true that some Mallorca property web sites are not kept up-to-date and attractive properties are kept on after they have been sold in order to solicit enquires.

If you use our service you can be assured the properties we put forward will be current. We also cover properties that might not be advertised on the internet or elsewhere.

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How long will it take until the property purchase is complete?

It is possible to complete a property transfer within a couple of weeks although generally we would not recommend working to such a timescale. One to two months is more realistic depending on how straight forward or complex the transfer is and whether finance is required. The buyer or seller may also have specific timing considerations.

You can read more on the buying process here: The property buying process in Mallorca

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I’ve heard terrible stories of “land grab” in Spain. Is this a risk in Mallorca?

Planning permissions have generally been more strictly controlled in Mallorca than in the Costas. There have been no instances of land-grab here and there is very little likelihood this would ever happen.

Irrespective of the above, it is essential that you have a good lawyer to handle your purchase. The same would apply in the UK or any other country. If a property has been built, or extended, without the correct permissions there could be issues, albeit compulsory demolition is almost unheard of and is only likely in the most severe and flagrant cases of infringement of the regulations.

A competent lawyer would always identify any planning irregularities in advance of any purchase. Read more: ADDLINK Lawyers in Mallorca

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