Majorca.The number of luxury properties in Majorca being sold to foreigners has increased for the first time since the recession started in 2008 after the government decided to lower prices in order to attract more investors.
Property prices have gone down by around 20%, turning its quality price relation into an attractive investment, in particular for foreigners and investment funds with considerable spending power. To these benefits, the possibility of visitors being given residency permits should they decide to buy real estate sweetens the possible deals.
The move to lower the prices is not a desperate measure by the authorities, they say, as the property market never totally bottomed out.
Around 85% of buyers have consistently chosen to buy houses in some of Spain's finest locations as they do not need a mortgage (most of them are foreigners) and most locations provide a small tax haven.
Since the recession started five years ago, property prices have gone down after the boom registered the last decade and in regions like Majorca, Ibiza and Marbella investments have started to rise again.
In terms of nationalities the new policies don't seem to be attractive enough for British citizens, with authorities now saying that British nationals no longer have the spending power they used to.
Most investors now come from Germany, Scandinavia, The Netherlands and the Middle East.
Citizens from the United States, Mexico, Venezuela and Colombia have also started to show interest in taking advantage of the new benefits given to those who decide to invest in Spain.
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