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Mallorca most stable

Catherine Deshayes

Mallorca, known for its fantastic beaches and sought-after high-end homes, has the most stable property market in the whole of Spain, according to Spanish property experts at Spanish Hot Properties...

They told the website Bye Bye Blighty that over recent years property on Mallorca has gained an upmarket reputation and the demand for homes there has increased, especially when you take into account the island's limited supply.

UK buyers top the list of overseas purchasers on the island and there are now 19,000 British residents living there permanently. There are also an extra 60,000 people from the UK with second homes on Mallorca.

The island's permanent foreign community of 16.8 per cent is the largest of any province in Spain with significant numbers also coming from Germany, France, Italy and South America.

Even this year, with all the troubles faced by the Spanish property market, Mallorca is still outperforming the rest of Spain.

Is has not suffered from an over-supply of speculative builds, like many of the popular costas on the mainland, and therefore demand, especially for quality apartments, is in balance with or exceeding supply.

Coupled with the lack of good plots and restrictions on building licences, prices for quality property in sought-after locations are still likely to rise between seven and 10 per cent this year, depending on the area.

Quarterly statistics released by the Spanish Ministry of Housing show that although new-build starts throughout Spain had fallen generally by 33 to35 per cent in the second quarter of 2007 (and by as much as 64 per cent in Andalucía), planning approvals in Mallorca increased.

Frontline property will remain an excellent investment, even more so if there is direct sea access, as coastal authorities are tightening up and developers are not allowed to build close to the coastline.

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Source: www.homesworldwide.co.uk