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Property prices continue to fall but indicate relative strength in Mallorca

August 20, 2013

Mallorca property prices update

Latest Spanish price data shows continuing falls across Spain, with the lowest level of decreases in the Balearics.

The latest Spanish property prices update from TINSA shows prices of properties across Spain continuing a solid downward trend. All as we predicted in our last market update – see: Property prices in Mallorca. Mallorca property market update July 2013.

The fall in the Balearics was less than the national average. Interestingly, the cumulative reduction here, since the market peak in 2007, is estimated at 29.9%, a figure that reflects our own observations on the market.

To see the figures in more detail, please see this article on Kyero.com House Prices Fall by 9.6% in July

Unfortunately there are no statistics to split out price trends within the Balearics. Even more useful would be statistics showing trends for different localities and types of property within Mallorca.

Such statistics simply do not exist. It is fair to assume however that there is a lot of variance between the prime locations, specifically those which are sought after by international buyers, and less desirable locations.

The same applies to property types, with features such as sea and mountain views being highly attractive. The difference in the marketability of two properties that are identical except for one having a sea view is significant.

So we stand by our prediction that we are seeing a leveling out in the price of the most desirable properties in the most sough-after locations. This does not necessarily mean only expensive properties, it mans those that are the most sought after by international buyers.

I stress however that any property has to be “sensibly” priced, which means taking into account that prices have fallen, even in the best locations. So owners sticking by pre-crisis asking prices are unlikely to sell at that level.

Furthermore, we are talking about a small percentage of the total stock of properties in Mallorca, so the impact of this on price trend figures will be negligible until the market strengthens more broadly – something that is clearly a way off at the present time.

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