Real Estate Weblog

In the last entry to some that the luxury goods market in Mallorca can not operate in isolation and is now subject to similar pressures to make the broader Mallorca and Spanish property markets. Calvia evidence from one of the most exclusive and high value of Mallorca, including not only the town of Calvia, but highly sought after cities in Bendinat, Portals / Portals Nous Santa Ponsa and Paguera is that the price of the villas and high-end houses have dropped up to 30% last year.

This is in stark contrast to what had happened until then, where luxury Mallorca property prices seemed to be holding up despite the sharp drop in market size and economic context very terrible. This simple logic seems to define and, although there is always an argument that the offer was, and is relatively limited demand has fallen dramatically, funding difficult if not impossible, to organize, and therefore unsustainable prices.

The British owner seems to be the biggest seller, no doubt, caused by economic problems back home, but also encouraged by the sharp fall in sterling and the opportunity to sell at lower prices in the euro, while it retains much if not all their capital at the time of transfer the funds back to the UK. In other words, the British owner can afford to adjust their asking prices downwards, and be more competitive, without significantly reducing the net real income in Sterling. The flip side is that the Germans are net buyers, along with other national euro-denominated.

At the individual level some areas of the city appear to have suffered less than others in the main due to supply problems and the availability of land for new luxury real estate developments in the future. In Bendinat, for example, where there is little or no land left for development, there have been relatively few drops in asking prices, while in Santa Ponsa / Nova Santa Ponsa, Costa de la Calma and Paguera some significant adjustments in the prices can be seen.

One of the largest drops in the asking price, a whopping 38%, recorded in Calva Village, where the selling price for a property with a main house of 400m2 (3 rooms, 5 bedrooms and 4 bathrooms ), two guest houses, beautiful tropical gardens, pool, stables and sand school, has fallen from € 4.3 million to 2.6 million €.

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