For many months now we have been advocating that buyers who are keen to buy the strongest property investments in Mallorca focus on finding good quality properties in prime locations – at a good price but not necessarily “bargain” price reductions of 30 or 40 percent off asking price.
The sense behind this is straight-forward. Mallorca has, for years, been moving increasingly up-market. There are many articles on this and our previous market updates clearly outline the reasons why this is so.
Put simply, there are many more “bargains” in less good areas and for less good properties. But this is not where the demand lies now and properties like this will take longer to re-establish their values let alone start showing am increase versus where they were before the recession.
As we have said before – would you rather get a 30% reduction off asking price on a property for which the value remains static for the next 5 years or longer, or buy a prime location property for 10% off asking price and see capital growth on your investment in a much shorter time frame? The latter is clearly the better investment of the two.
Neither do you necessarily need a huge budget to find such properties. For example, earlier this year we sourced a super little two bed apartment with harbour views and within walking distance of the town in Puerto Andratx earlier this year. The price was well under Euro 300.000!
This is not just our own view. A report this week in Kyero (online Spanish property portal) reports Mallorca to be distinct from the general market in Spain and the focus is on the prime areas. You can read the report here Kyero report.
For more guidance on what this means practically in terms of the best areas to buy in, and the best way to go about it, read our most recent Mallorca property market update – available online via the link below.
≈ October 2009 Mallorca property market update – where, when & how to buy
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