If they want amusement, they can also get it in the beaches of Brazil or places such as Cartagena de Indias.
In addition to this, new destinations have arisen in Bulgaria, Romania and Croatia, which are interesting to those wishing to buy houses either to live there or for an investment, said Bernardos, who estimates that, next year, the price of housing could fall by up to five percent in Ibiza and Minorca.
In his study, the Professor of Economic Theory cites other factors at national level which explain this change in the housing cycle and that are applicable to the situation in the Balearics.
He mentioned the overbuilding existing in the construction sector. In 2005 around 650'000 flats were built in Spain, of which less than half have been sold. This year, 800'000 new homes are expected to be built.
From the point of view of demand, Bernardos said that the thing stopping most purchasers was the existing level of prices.
In addition to this, he added, there is a noticeable deceleration in the amount of people coming to the capital to buy housing (a fall of 10 percent in the first half of 2005, according to the Bank of Spain) and growing difficulties for immigrants to Spain to buy houses with the existing banking conditions.
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