Mallorca Property Market Update – October 2008 (page 1 of 4)

Here is a current perspective on the property market in Mallorca as we move into the final quarter of 2008.

There is no doubt the international economic instability we are seeing is affecting the property market here. Overall however the slow down in Mallorca is less severe than that being experienced in the UK, mainland Spain or most other locations. Also the effect of the slow-down varies widely between areas and types of property.

Underlying this, Mallorca still remains one of the most sought-after property markets in the world and the supply of good properties continues to be limited. It is important to understand this, and the reasons behind it, if you are to get the best value during this period when there will be some good buying opportunities:

* Mallorca is an international market. Whilst the British have been the predominant buying force in recent years, demand for Mallorca comes from all parts of the world and continues to increase. Mallorca is already established as one of the most desirable places to own property and this is not changing.

* At the same time, planning restrictions have been rigorously enforced and made even more stringent in recent years. This has protected the environment and limits the supply of properties on the market.

* This has a knock-on effect across all properties on the island, particularly those in the most well-established and sought-after locations. The old properties are worth renovating to a high standard and, where there are opportunities for new-builds, they are built to the high standards buyers expect.