Financial Times announced Mallorca in the 10 best safety places to buy property
The unravelling of international financial systems and subsequent contagion into the broader world economy has clearly inflicted multiple wounds on residential property markets. Even the luxury end has been hit as high-net-worth individuals watch their investments in shares and, most recently oil, nosedive.
But, as we move into 2009, with prices falling and more distressed sales coming to the market, it could just about make sense. Those with money are starting to scavenge for bargains. Why anyone should listen to real estate industry analysts is a fairly important question. None of the agencies or organisations that regularly comment on the housing market predicted the 2008 crash so why should we think we know any more now?
But we are in a very different situation than we were a year ago. In 2007 we were at the top of a boom and the question was when it would turn to crash. Now we are in the crash and, whether prices fall 30 per cent or 50 per cent, at some point in 2009 the market is likely to hit bottom or be close to it. This is the time to prepare to buy before the herd moves in.
Wise house hunters will concentrate on areas poised to perform well over the medium- to long-term. Prices will take a long time to recover fully so think carefully about the outlook for a particular location, its infrastructure, accessibility, amenities and prospects for economic growth.
Build-quality in an older home or new development is important, as is an established secondary sales market and a transparent legal framework. Only after examining these factors should you look at price.
Mallorca is in the 5th position for best locations to buy!
5. Mallorca - The much publicised Spanish property downturn has not had much of an impact on the main luxury market in the Balearics because of a balanced supply-and-demand situation driven by fairly tight control on new development and continued purchases by domestic and overseas buyers . Recent road improvements have added to the island’s appeal, low-cost airlines have improved flight frequency and 2009 will see the extension of the rail network link from Palma via Inca and Manacor to Arta. The prime locations are Puerto de Andratx and Palma Old Town in the south-west, Puerto de Soller, Valldemossa and Deia in the west and Formentor in the north, with average prices from 6.000-7.000 euro per sqm.
Contact Our Mallorca Premier Property Team:
Balearic Properties Real Estate
Head Office:
Via Pollentia 3, Pollença Old Town
Phone: +34 971 53 22 21
Direct Phone: +34 658 972 108
Fax: +34 971 53 45 06
Website: www.balearic-properties.com
