Comment

The tragedy of events which occurred on September 11th in the United States of America most certainly belong to the worst mankind has suffered in its history. The unforgettable pictures of the collapsing twin towers of the World Trade Centre and the effect on the international economy have been dire. Mallorca also expected the worse, however, the predicted disasters did not occur. The media, particularly in Germany, still gave Mallorca negative headlines without making the necessary investigations to substantiate their articles. Naturally, I too had serious thoughts regarding the effects of this act of terrorism, however these have since, thankfully proven to be unfounded.

During the month of September, investors did quite naturally hold back . However, the month of October completely surpassed all of my expectations and has since proven to have had the third largest profit yielding in the 15 years of Kühn & Partner! Only in May and November 2000 have the profits of Kühn & Partner been higher. Also the interim balances from the following month give us excellent expectations for further superb results.

The figures show very clearly: People have faith in continuity... .. the strong losses on the Stock Exchange have again shown that property is and always will be, a good and solid investment. Whether it be the ups and downs of the possible effects of the new Euro currency or the reoccurring stories of the proposed coach driver strikes or the endless discussions over the supposed water shortage, nothing has affected the prices of high quality real estate Incidentally, the same development occurred in the 90*s after the Gulf War. Instead of being frightened to invest in property the British chose to do this and thereby improve their quality of life. As always will prove to be the case with real estate investment on Mallorca, the simplest and honest arguments will always win e.g. easy, frequent flight connections, safety, excellent infra-structure, plus the beautiful landscape all combine to make Mallorca one of the most attractive and sought after regions of Europe.

We are convinced that Mallorca will remain a favourite and that the amount of European property owners will carry on increasing. For this reason, we are expanding our UK Division under the management of Michael Cunnington who has long experience in the Mallorcan Real Estate market.