City blows its record bonuses in Majorca

By Humphrey Carter MAJORCA's real estate and nautical sectors enjoyed a bumper Christmas with the island soaking up some of the millions of pounds paid out in record City bonuses last year. The Centre for Economics and Business Research reported yesterday that financial workers in the City are set to earn a record £7.5bn in bonuses this winter and many of the lucky employees have already splashed out on luxury houses and yachts and, in many cases, paying cash. Majorcan property dealer Malcolm Andrews said yesterday that interest in million euro plus properties started to rise dramatically some four to five months ago as soon as the City employees knew just how big their bonuses were going to be. “They wanted to have the deals closed by Christmas or New Year and none of them were looking for mortgages, all cash transactions. “Some of them were in their late 20*s and they were all looking for properties in the one million euro-plus bracket. “Obviously, the older the City employees got, the bigger the bonuses and bigger the property they wanted,” Andrews said yesterday. “One chap was offering 1.9 million euros cash for one property in Costa d'en Blanes.” What is more, those who have decided against a millionaire's holiday home in the sun have opted for a luxury yacht - or both in some cases. The London Boat Show is doing swift business and an increase in demand for moorings in Majorca has been experienced over the past few weeks. There are going to be a large number of City workers cruising into the Balearics this summer. Andrews said that Sunseeker have a waiting list until August 2007 while Russell Currie, sales director for Fairline in Puerto Pollensa said that business is very brisk this year, not only with City workers looking to spend their bonuses but from across the business sector in general. “Business is good and those at the top of their trade who know what they are doing have money to spend,” he told the Bulletin from the London Boat Show. In fact, last night Fairline held a special VIP party for City millionaires and lottery winners. The centre for Economic Business Research reported yesterday that this year City bonus pay-out is 16 percent up on last year. The average worker will be receiving £23'000 while an estimated 3'000 will receive a windfall of £1 million or more on the back of a 10 percent rise in stock market activity and a 20 percent increase in mergers and acquisitions.