Foreign property market has been hit by talk of restrictions. | Majorca Daily Bulletin reporter

The Balearic government’s intention of trying to limit the foreign property market appears to have already hit the real estate sector.

The sale and purchase of homes by foreigners in the Balearics has already slowed down during the third quarter of the year in the midst of the talk about restricting the non-resident market.

The latest date on real estate transactions from the Association of Registrars show that the rate of sales fell in the Balearics in the third quarter of the year by 3.19 % compared to the constant rises of previous years.

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That said, up to October of this year, almost one out of every three property transactions made in the Balearics was by carried out by a foreigner: 31.46%.

But, sales fell for the first time in months in the Balearics at a time when this type of transaction is on the rise in the rest of Spain. Other territories where the density of purchases by non-residents is as intense or more so than in the Islands maintained positive records for purchases up to October.

The apparent slowdown in transactions is not yet having an impact on the moderation in prices, which is one of the reasons the government wants to limit the foreign market.

The Balearics is the second community and the third province in Spain with the highest house prices.