I am told that the British have started to return on the lookout for property on the island. Now, we have all heard this before but this time it appears to be true. The one thing we need is for the pound sterling to remain at its present value or even rise further against the euro. The pound at the moment is almost at an eighteen month high against the single currency but we have seen this all before. If it stays at this level then Majorca can look forward to more British tourists and probably an influx of British property buyers. It is as simple as that. If you look back to the good old days when sterling was trading at 65 pence per euro Majorca was booming.
Homes were being sold and tourists were spending much more. Most economists doubt that sterling will ever reach this figure again but if it settles around the 82 pence mark, then there could just be light at the end of the tunnel. We all know that this island is a very attractive place for the British. What has spoilt things over recent years has been sterling´s poor performance against the euro.
If the markets continue to believe that the British economy is doing better than the euro zone then the pound should stay strong. The only low point is that many people have serious doubts about the British economy and sterling has only risen as a result of the euro zone´s problems. Against other leading currencies it is an all time low. However, there is some room for optimism and let us hope that it can stay at its present level.