Spanish Property Transactions Fall Again – Sales of Mallorca Property Down More than Spanish Average
Novi Property Mallorca
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The number of housing sales in Spain hit an all time low in the first quarter of 2009 according to the latest figures released by the Ministry of Housing. The figure of 105,000 transactions is the lowest since the current statistics started in 2004 and is down 34% on the 159,000 for the same period last year and 16% down on the last quarter of 2008.
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This new fall contrasts with the small increase of 2% between the 3rd and 4th quarters of 2008. At the height of the boom transactions totalled well in excess of 200,000 per quarter and reached 251,000 at the peak in 2006. Looking at the statistics regionally Mallorca and the wider Balearic Islands were the worst performing region with a fall of nearly 44% followed by Cataluña -42% and the Canary Islands -39%. The best performing regions were Extremadura (-14%) and Navarra (-8%).
For those that continue to maintain that the Mallorca property market is somehow different and resistant to national and international events these figures demonstrate the reality that the price of Mallorca property reached completely unsustainable levels and is undergoing a sharp correction at least in transaction levels. At Mallorca Chartered Surveyors (Specialist Mallorca Property Valuers) we have maintained for some time that underlying values have and will continue to fall while asking prices seem to be lagging behind, all of which could explain why Mallorca property sales have fallen so much – prices still need to fall and affordability ratios improve.
David Novi commented, “caution is needed if you are looking to buy property in Mallorca at the present time as asking prices are still lagging behind falls in underlying values in many cases. I firmly believe there are some emerging good buying opportunities either because the owner has been more realistic or because of financial necesity (see Distressed Property Sales in Mallorca ) but these are still the exception not the rule. The key is good valuation advice and market research”.
If you you are a potential buyer of Mallorca property and would like to discuss how we David can assist you identify and appraise buying opportunities please contact him at [email protected] and see Property Finders in Mallorca. For property for sale in Alcudia and Pollensa please see the dedicated North Mallorca, Alcudia and Pollensa web site Properties International Mallorca. Other property sales in Mallorca see Novi Property Mallorca
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