Garage costs more than a house in Palma

The drop in sales has been blamed on a number of factors from Brexit to the problems being experienced by the German economy

The foreign property market is heavily reliant on the Germans, almost 60 percent of foreign property sales this year were to Germans | Photo: R.L.

Jason MoorePalma14/09/2023 15:02

Alarm bells are ringing, the number of properties sold to foreigners fell by 28 percent in the second quarter added to a fall of 31 percent in the first quarter. ABINI, the association of national and international real estate agents, quite rightly, sounded the alarm. To make matters even more worrying some parts of the mainland are enjoying a foreign property boom; in Valencia sales of homes to foreigners rose by 9 percent. The drop in sales has been blamed on a number of factors from Brexit to the problems being experienced by the German economy.

Despite headline-grabbing reports, the American market is still relatively insignificant. I would say that one of the reasons for the decline in sales is price; a garage in Palma can cost more than a beach-side property in Valencia. The Mallorca success story has meant that prices have increased dramatically over the last decade. When the mainland was suffering problems, the Balearics were booming. Perhaps a price adjustment is needed. The foreign property market is heavily reliant on the Germans, almost 60 percent of foreign property sales this year were to Germans. So if Germany sneezes, Mallorca gets a cold. Also, large sums of money have been spent on improving places such as Malaga and Valencia. On a final note, if you want a taste of England in Spain, a house in Asturias will cost you about 50,000 euros.