The market for prime Mallorca properties is strengthening

There are continuing indications that prices for prime location properties in Mallorca have reached a bottom.

This is a brief market update to follow on from my last update in July (see Mallorca property market update July 2013).

The key observation then was that we have seen increasing demand for the most desirable types of properties in the best locations. This demand is coming from a wider range of other countries than used to be the case.

The following four months have indeed backed this up and this is an important point for anyone thinking of buying here. For the last five years or so, the market has been strongly in favour of the buyer. Now we are seeing the beginnings of some competition for the best property opportunities.

This is not intensive as in prime locations in London. Indeed, we are only at the very beginning of this change in the trend. But it does appear to be an increasingly solid change. Mallorca is a relatively small property market, particularly if focusing on properties that are desirable within the international sector of the market. A small increase in demand will have a notable effect and we could well see the price of the best properties rising in the not too distant future.

It’s worth noting also that when I refer to prime locations and the most desirable properties, this does not only mean properties in the upper price brackets. For example, prime location townhouses like this one in Fornalutx (Traditional townhouse with roof terrace, mountain views, Fornalutx), can still be bought for under 400,000 Euros.

Similarly, sea view apartments in southwest coast locations such as Cala Major and San Agustin, which not so long ago would have seen little interest, are increasingly sought after and hard to come by. See some of our selected sea view properties here.

I am not trying to lead prospective buyers to rush over here and buy now. The key to buying well is to understand the market here and buy a good quality property in that context. This is far more important than big percentage discounts and price reductions if you have a view to the property being a good long term investment.

I have to say though, the coming months could be a very good time to buy!

The market for prime Mallorca properties is strengthening