Mallorca Property Market Update – October 2008 (page 2 of 4)

* While the world is in a slow-down, many of those vendors who have been in the Mallorca property market for a while prefer to stick close to their asking prices rather than drop it significantly for a quick sale. They have seen prices escalate consistently over the years and there is confidence that this will continue to be the case when the economic environment improves.

* The rental market continues to get stronger, something that is most apparent in prime areas such as Pollensa. This allows many vendors to be somewhat ambivalent as to whether their property sells now or in the future. If they do not get the price they want now they simply continue to rent out until a buyer appears or the market rises.

* In additional to this there are more and more people wanting to move to Mallorca on a permanent basis.

These factors all mitigate against the effects of the international slow down and show Mallorca to be a good investment. But even the strongest markets are not escaping the current slow down and there are good opportunities to buy that would not have existed last year. This all points to this being a good time to get into the market if you are in a position to do so.

So, where do the best opportunities lie?

There are already some "bargains" to be had, and likely to be more. But the best investments will not necessarily be the properties where the greatest price reductions have occurred. Just as there are far more significant cut-price deals on the mainland at present ... would you rather own one of those or a good property in Mallorca in a few years time?