Property market Balearic Islands and Spain

Mallorca is the place to buy property if you are looking for a place in the sun with all the comfort one could wish for. The information most buyers are interested in is the development of the property market, the affect of the crisis and the future prognosis. We have created here after a summary of the official registry office of Spain.

The number of total registered sales in Mallorca have been 9.248 in 2014 which is around 8.5 properties for each 1000 habitants. Comparing this number to 2015, we observe an increase in sales as from September 2014 to October 2015 (most recent statistics) 10.222 sales have been registered on the Balearics. In the 3rd trimestre 2015 there have been 92.786 sales in the whole of Spain, in the same trimestre in 2013 there have been 72.560 sales registered. This shows a clear increase in sales over the last 2 years.

It comes to no surprise that the Balearic Islands is the Spanish municipy with the largest percentage of foreign buyers. In total there have been 32,63% of foreign buyers, with the following distribution:

Graph 1: Distribution of foreign buyers in the Balearics 2014 in percentage

This graph shows that the market is still dominated by British and German buyers, a total of 53.96% is covered amongst the two nations, the Swedish have become a stronger buyer group than the French or Italians. 16.31% of the foreign buyers invested more than €500.000 in their second home or permanent residency which is the highest statistic in the whole of Spain.

Further interesting factors

It seems that size is important to half of the buyers in Mallorca, more than 50% are looking for a place with at least 80m2 constructed area. The average is 103m2 on the Balearics.

Further the Balearics hold the pole position in Spain when it comes to monthly mortgage repayments with €704 over a Spanish average of €532. This may of course be related to the still 2nd highest property prices in the country and the fact that buyers in the Balearics chose the shortest mortgage period over the rest of Spain.

In conclusion, we observe a clear increase in sales in Spain and the Balearic Islands and a steady percentage of foreign buyers who are still happy to invest a significant amount of money into their second residency or their permanent home.

We are looking forward to advice you on a personal level on selling your property or buying your new home.

Sources:

Statistical report 2014 "Registradores España"

Statistical report 3rd Trimestre "Registradores España"