Mallorca Property Prices

Properties in mallorca seem to have stabilized over the past year and the local Spanish and Resident market is all but still. Certainly, the credit crunch, to coin a phrase coming out the UK at the moment is also being felt here. Interest rates of 3.0% on mortgage just over two years ago are no longer and the current starting rates of around 5.5% give or take are being felt in the pocket. But the monthly cost of borrowing here in Mallorca property is still cheaper than in the UK, where a large proportion of the investors come from.

An Puerto Andratx, property prices have dropped considerably for front line properties at the coast, an example of this property reduction is a villa in port andratx  marketed originally at 5.5 mio. euros, now reduced to 3.9. This year it seems that the prices are stable and prepared to go up again in 2010.

So the British Pound has dropped against the Euro. Yes, and this will effect the top end budget of the buyers that are looking but even then, most buyers have a certain margin in their budget so they can either absorb this extra cost or look at slightly cheaper mallorca properties, it does not stop them from buying. Add to that the fact that many investors now have euro accounts anyway and the increasing use of commercial exchange companies the knock on effect of this is greatly reduced.

Find the best mallorca property deals at www.portandratx.com