After seeing price falls of up to 30 per cent since the recession began in 2007, Spain’s Balearics are witnessing a property price revival as the market finally looks set to recover.
In 2013, the Balearics had the highest number of property sales to foreign buyers, as well as the highest number of sales above €500,000.
Foreign purchases have contributed greatly to the Balearic property markets renewed vigour, with 30.73 per cent of house sales in the region attributed to international buyers, according to property experts at Balearics Sotheby’s International Realty.
“What is really interesting about these figures,” a spokesperson for the realtor said, “is that when you break it down, 14.34% of those sales to overseas buyers were for properties over half a million euros. This compares to just 7.43% in Andalucia and 6.57% in Catalunya. The other regions like to talk up their markets, but the Balearics is the only one that can prove that a melting pot of nationalities has kept the property market busy and buoyant.”
“Never before have so many €5 million plus villas been sold in one year,” he said, “this is record-breaking. The Balearics have the highest foreign resident population in the whole of Spain at 20.1 per cent, and it’s this nationality mix that keeps our property market so resilient. Germans are still the biggest buyers, but Brits are in second place and I expect more Chinese, Middle Eastern and other non-European buyers this year as the law granting automatic residency to investors who spend more than €500,000 on Spanish property is now in full effect.”
“Put simply, the Balearics are a wonderful place to own a home. Building regulations have been tight for years, a large chunk of the land is construction free or UNESCO protected such as Mallorca’s Sierra Tramuntana, Ibiza’s High Town and the Island of Formentera,” he explained.
The representative also pointed out that there are 26 golf courses in the area, the most Blue Flag beaches and marinas in Spain, amazing cuisine and culture, and incredible scenery characterised by high mountain ranges and turquoise blue seas.
He was also of the opinion that the new golden visa which grants residency to non EU buyers spending a minimum of half a million euros on property, which came into place last year, has helped to bump up the number of sales at over €500,000.
The Balearics has also been announced the region which holds the highest percentage of registered foreign resident in Spain, according to the Institute of National Statistics (INE).
Many agents and property owners are now comparing the Balearics to the Cote d’Azur in terms of its desirability to the affluent and its glamorous lifestyle appeal. “someone commented to me last summer that they’d never seen so many superyachts [in the area],” said Knight Frank’s Edward de Mallet Morgan.
Ron Wilkinson of Alta Vista Property investment said that the Balearics are now rivalling Marbella as the most desirable location in Spain. “As far as attraction to the rich, leisure activities on offer, lifestyle quality and premium facilities are concerned, the Balearics and Marbella are practically on a par with each other. The increase of interest in the Balearics can only be a good thing and hopefully it will help to attract buyers and investors across the rest of the country,” he said.