Prise rise in Mallorca vs. prise decline in mainland
To live where others go on vacation. That is for the mayority a dream and for some people actually a reality. The truth ist that is was never so close to become true as it is now. It was never so feasible to buy a property in Spain as it is now. Those thinking that something like that is only within a few people´s reach do not know the local real estate market. Since the begin of the financial crisis in Spain the prices have gone down up to 50% in some very interesting holiday destinations.
That is the conclusion when analyzing the price and acquisiton barometer of the real estate portal immowelt.de. Since the beginning of the crisis in 2008 in Spain the prices int he real estate market have been strongly sinking. In some regions, like the balearic islands, the prices stay stable regardless the crisis and they even rise up. In the mainland, however, the situation is a lot different with prices droping in the best known holidays destinations.
Mainland coast vs. Mallorca & the balearic islands
On the whole the prices have gone down drastically affecting all main touristic destinations of the spanish mainland coast. This applies also to the luxury real estate sector, whose prices have been also affected despite the general stability of the sector. However, there are exceptions to every rule, also to this one.
The real estate market is hardly affected by the financial crisis in Mallorca. Plots, apartments, houses and luxury villas are sold at the 7-digit prices. The average price per square meter of real estate in Mallorca varies from 3,189 to 4,797 Euros.
In some areas prices even rose up, like for example the northern coast of Mallorca, where the average price increased by 27% compared to 2008. On the other Balearic islands the situation is similar. On the white island of Ibiza the average price of a property was in 2013 the 15% higher than in 2008 (4,143 euro/sq.m. in 2013). On Menorca the prices rose up by 10% (3,973 euro/sq.m.).
Mainland coast - Costa del Sol
In the Costa Cálida, for example, the prices have dropped a whole 42%. In the famous Costa del Sol, with well known cities like Málaga and Marbella, the prices have also dicreased aorund 30%. The current average price of a property is 2.707 euros per square meter, whereas back in 2008 the average price was well over 1.200 euros more expensive.
All in all, when comparing the real estate sector in both regions, the prices in Mallorca are on average also 1.200 euros more expensive per squeare meter than in the Costa del Sol.
Everything indicates that it is now a good moment to make an investment in the Spanish real estate market. Maybe not inmediately in the regions where the prices keep rising, but in those destinations, where the market offers reasonable advantages. It is now the perfect moment to buy that villa in Marbella that you always dreamt of having, or maybe in the Costa Cálida.
Fell free to contact ATRA LuxusImmobilien regarding any question you might have about the current real estate market in southern Spain!