248: Mallorca a 'hotspot' in Spain's changing property market
Navigation trail: / latestnews / archive / 248 - published: 18-12-06
The Brits love affair with Spanish property shows no signs of diminishing although the areas still showing growth potential are changing.
'It is interesting to note that according to the government's figures in 2005, some of the highest growth regions in Spain were Aragon, Andalucia and Galicia,' said Nick Freeston, director of the international department at Chesterton International. 'Average capital growth was 12.8% and in 2006 Mallorca is proving to be our hottest market with growth levels anticipated to be in double figures.'
Chestertons believes that the overall Mediterranean market remains solid due to climate, type of product and price range, as well as low cost carrier affordability. Whilst the Mediterranean islands of Crete, Cyprus and Menorca remain popular they are not seeing the same levels of overseas purchasers as other areas in Spain.
The number of investors that flooded the Spanish market between 2001 and 2004 has reduced and with significant stock levels now nearing completion the number of re-sale properties available has risen.
Some 65% of Chesterton International's clients who bought in Spain have been second home purchasers wanting to use the property as a holiday home and as a long-term investment, while 25% of purchasers are investors looking for good rental yields, and 10% are retirement purchasers, in search of the sun.
Mallorca remains the most popular hotspot accounting for 80% of Chesterton International’s sales for Spain in 2006. This is because of a wide range of properties available to buy with good entry level pricing and a healthy price mix starting from £120,000.
'Mallorca also has smaller developments compared to the mainland giving a more exclusive feel. There are strict building guidelines as to what you can build, meaning a reduction of large scale developments. There is easy access from the island’s major airport and the island is a good golfing destination as well as having beautiful coastal areas, great beaches, food and culture,' said Freeston.
Source:
citywire.co.uk