New Year, New Opportunities in 2010

There has been increased movement over the past few months in the Mallorca property market following falls in 2009, particularly for quality property in prime locations.
British buyers are renewing interest following the strengthening of the pound and with bad news in the Eurozone coming from Greece and some better news from the UK, the pundits are forecasting this good run will continue.
Further indications of the opportunities in the Mallorca Property Market have appeared in the press already this year:

Sunday Times 3rd January 2010 “In troubled times, old favourites fly high”
“Spain: Stop writing off the country as one big disaster area, we need to start distinguishing between the good quality and the appalling, and which are amongst the prime locations where we should be buying? Puerto Andratx on Mallorca.”

Country Life : 10th January 2010 Mallorca property market update
“Prime Mallorca property in the right area will still sell, although buyers can’t expect a complete bargain, Mallorca has attracted very few speculative investors and still remains what has come to be known as a lifestyle choice destination.
You cannot lump the Balearics together with the rest of Spain, in particular the mainland costas where overdevelopment has led to a vast surplus of new build apartments leading to a dramatic fall in prices.
Supply and demand in Mallorca is more evenly balanced, and as the coastal authorities and local councils are constantly tightening planning laws under the direction of the Ministry of the Environment, choice is more restricted.
The outlook for 2010 – In highly attractive areas such as Puerto Andratx, prime property correctly priced will sell quickly, although it’s no longer the case that location alone will command top prices as discerning buyers in today’s market are looking for value.”

The Sunday Times 24th January 2010
“German investors…..are now buying back property in their favourite haunts, such as Mallorca, so what does this mean? Is now the time for smart British investors to follow German buyers back, … at least in preferred strongholds such as Mallorca?
Of course, prices may continue falling, but don’t expect prime properties to be given away. “British people making offers 50% below the asking price are going home empty-handed, Germans know they won’t get bargains, but they think now is a good time to invest, and better and safer than having their money in the bank.”
In prime areas such as Mallorca, the window of opportunity may shut sooner than people think. Vendors are still open to offers, and it’s far easier to negotiate with them just before prices start rising than just after, but for the first time in 18 months, Agents are actively having to look for property, so the supply of properties priced to sell is getting tighter again.”

In conclusion, Mallorca continues to have broad appeal amongst discerning buyers around the World and properties in good locations have continued to sell. Prices have dropped but as the market returns, prices for these properties have probably bottomed.
Pinpoint Property recommends that if you are interested in buying property on Mallorca, opportunities now are probably as good as they will ever be. So contact us now to search for you. Serious offers can still often result in a reasonable reduction if you have funds in place and can move quickly. In this way you will be assured of getting your dream property for a good price, safe in the knowledge it will prove an excellent investment.

Why Invest in Mallorca property?

Investing in Mallorca

Despite the anxiety surrounding other parts of the World at the moment, Mallorca is still a very safe investment. Property prices will always remain steady due to the fact there is limited land available for new construction, so any existing properties on the island will be in high demand.

Mallorca is one of the most expensive places to buy in the Iberian peninsula but with 300 days of sunshine every year, 23 golf courses, 25 marinas, as well as some of the most stunning scenery in Europe, plenty of Europeans consider it a sound investment.

Demand for property in Mallorca continues with 54,000 EU residents (of which 19,623 are British) now living in Mallorca permanently, together with an estimated 60,000 second home owners from UK.

Building regulations, once unheard of in Mallorca, now ensure that new homes are of a high standard; tall towers are banned in a bid to avoid Spanish mainland-style over-development; and many areas have a quasi green belt designation, so detached homes must be in large plots to avoid dense development.

Accessibility from the UK and Ireland is another major factor in the success of the Mallorca property market with reasonably priced flights of around 2 hours available from Belfast, Birmingham, Bristol, East Midlands, Edinburgh, Exeter, Glasgow, Liverpool, Leeds, Manchester, Newcastle, Southampton and all London airports plus Dublin and Shannon. Links with the rest of Europe, especially Germany and Scandinavia are also extensive.

This provides a huge market for property investors looking for long or short term rental income in addition to capital appreciation.

The Island has always understood the benefit of foreign investment and make property acquisition and legal procedures simple with no language skills required. For income tax the flat rate is 25% of the gross rental income and Capital Gains Tax is applied at 18% for E.U. non-residents and residents alike.

A resourceful infrastructure provides all the necessities for absent landlords with an abundance of property management companies providing all necessary key-holding, maintenance and security services, backed up with a proficient service industry.

With our specialist Pinpoint Property Investor Service, we understand the very specific needs of Investors and with our expertise and knowledge of the Island are able to provide information on new and forthcoming developments, some before marketing commences – very difficult unless you are based here.

Pinpoint Property Investor Service will work on a brief from Investors to identify investment opportunities in the real estate sector, using our network of contacts, both agents and developers. We will undertake all the necessary work involved in researching, analysing and preparing a unique individual property portfolio – saving you time, money and hassle.

Contact us with any initial queries and we would be pleased to arrange a meeting to discuss your requirements further.

See our guide to Property Locations in Mallorca

Back to the top