High price of property not deterring foreign buyers

Richard Branson is one of the foreign buyers: his Son Bunyola estate in Banyalbufar. | R.F.

Majorca Daily Bulletin reporterPalma06/06/2016 00:00

There is yet another report into the price of housing in the Balearics. This one comes from Servihabitat, the real-estate arm of Caixabank. It confirms the high price of property in the Balearics, as it is set to increase by almost 7% above the national average this year. The report - "The Residential Market in Spain" - says that the positive trend in both price and value last year will be added to in 2016, making the Balearics the region with the highest percentage price growth.

Servihabitat notes the fact that the stock of new properties in the Balearics is the lowest anywhere in the country - 7.6% - so demonstrating the dynamism in the property market, thanks in no small part to purchases of first or second homes by buyers from other European countries in each of the four islands. This foreign investment is forecast to assist in a growth of 13.6% in property sales, thus placing the Balearics in top position among Spanish regions.

Researchers responsible for the report say that increased demand and investment activity, allied to improved financing opportunities and the positive situation in respect of the Euribor are all contributing to anticipated growth this year. The main factor, they suggest, is the demand by purchasers from the main tourism markets. The most dynamic in terms of purchasing are the British, the Germans, the Swiss, the French and the Italians. Sales to foreign purchasers went up by almost 40% last year.

It is Majorca which is attracting the most interest and which will continue to do so this year. Minorca, meanwhile, is becoming more popular with British buyers.