Mallorca Property Market Update – October 2008 (page 3 of 4)

The same applies to different areas and properties within Mallorca. The best properties will go down by the least amount, and go up by the most when things turn around.

Amongst the most affected properties are the older holiday resorts. Here there are good opportunities to pick up properties for a simple refurbishment and these can be excellent investments. Remember there are very few new developments going up in Mallorca so, over time, the older properties will be refurbished and the areas will become increasingly sought-after. ”Old” Santa Ponsa i.e. the developments in, or close to, the town, is a location worth recommending in this context.

Even the infamous package holiday resorts of Palma Nova and Magaluf are becoming gradually more refined as the local authorities redevelop the areas. The reason is they are in prime locations and the island authorities want to gradually move such resort areas more up-market.

Similarly, properties that are in areas where locals live and which are not focused on the holiday trade have been more affected than others. This can offer opportunities for people relocating permanently to Mallorca to buy properties they might not previously have been able to afford.

Beyond this, our advice is to focus on the well-established prime areas. They are the prime areas for good reason, i.e. they are the most attractive when you take all factors such as amenity, scenery and accessibility into account. The price reductions in these areas might not be so significant but this is where the demand has remained most solid and where it will escalate most when things get back to normal.