Property For Sale in Andratx - A Review of the Andratx Property Market
Novi Property Mallorca
Property for sale in mallorca, property for sale in Andratx
Andratx has always been regarded as one of Mallorca's "property hotspots" and a favourite destination for the rich and famous. During the boom years the Port of Andratx became a hive of construction activity as every conceivable peice of the rocky coastline was snapped up to build ever higher priced villas and apartments. While in most cases the build quality was high, corruption scandals emerged and black clouds were cast over the market even before the economic downturn threw everything into reverse.
property for sale in Andratx
So what is the legacy for the Andratx property market and what are the prospects during the downturn and for when growth returns? First and foremost despite the almost totally uncontrolled development activity since the turn of the century and, at the very least, "suspect quality" of the general environment created by this boom, Andratx and particularly the Puerto Andratx coast has maintained its allure for property buyers seeking top quality villas with spectacular sea views.
The downside is that vast areas have failing infrastructure (roads, water and foul drainage in particular), and the general environment has suffered much to the consternation of local and international environmental groups including Green Peace. The result is that virtually all new development has now been banned until the infrastructure has been introduced and fully adopted by the Town Hall. Furthermore a new and updated Development Plan is being introduced in conjunction with the Consell de Mallorca (Mallorca Council).
The positive "spin" to this story of failing management of construction activity is that this now appears to be in the past and a programme of improvements is underway that should see the main problems addressed within 3 or 4 years. Of course we need to add to these woes the "insult"of the economic downturn and the impact this is having on the owners of Andratx real estate assets, in terms of values and prices. For many Andratx remains a solid long term bet as an "investment location" within Mallorca and only recently was identified by the Financial Times (in an article of the top 10 worldwide real estate locations - Mallorca came 5th) as one of the best areas along with Old Town Palma, Deia and Soller and the exclusive urbanisation of Formentor in North Mallorca.
The feeling is that the key attraction of the area - high quality properties with sea views and good quality amenities in the Port and Old Town, will ensure that the shine will return to the market as and when the wider market and economy recovers and the infrastructure improvements are completed. For the moment however values are under pressure and the area contains some classic examples of grossly overpriced properties and divergence between asking prices and underlying value. With owners clearly aware that all buyers will seek to negotiate discounts there appears a philosophy that the best way to "manage" this threat is by either leaving asking prices unchanged, so there can be a wide range of movement when it comes to negotiations with purchasers or, extraordinarily, setting asking prices artificially high so that it appears that buyers are achieving good discounts, and a "bargain", when huge discounts are eventually agreed.
That said some major sales have been achieved since the start of the new year demonstrating that if real value can be demonstrated buyers will part with their money in an area viewed as a "safe long term bet". The key is in the assessment of value and the characteristics of the individual property - quality and location are paramount. So along with "location, location, location" comes "market research, market research, market research"!
Like in all areas buying opportunities are emerging but these need to be carefully examined and often only reveal themselves at the time when serious negotiations get underway and an "agreed price" emerges. At Novi Propert Mallorca and specifically our dedicated property finding arm, Mallorca Real Estate Search, we pride ourselves in not only accessing the best properties but, so importantly in this market, helping clients assess value and "worth" (ie what any individual investment is worth to the buyer, taking into account their requirements, risk profile and investment time horizon) and thus establishing an appropriate purchase price.
For further information please contact David Novi BA MPhil MRICS
, Property for sale in mallorca