Majorca, the Balearic Island off the mainland coast of Spain, has been the most popular of the islands, as far as tourism is concerned, for many years. Not only as a holiday-party-all-night type of destination, but as a place to set up permanent residency. The beautiful beaches and sun-filled landscapes, the clear ocean and the wickedly fun night life has attracted not only visitors from across Europe, the rest of the world as well. The famous and the rich travel to island, not only for the scenery but for the cultural aspects and the metropolitan feel of the capital city of Palma. And over the years, Majorca has relished in not only the tourism industry, but the real estate industry, as the sales of new houses was steadily increasing, until the last financial quarter of 2008. That last quarter has been the most difficult and trying financial quarters to date. Sales of new property fell forty percent. And the number of sales to the British, in the past the highest category of new home buyers, dropped by fifty percent. Currently the main buyers on the island are from Switzerland, Mainland Spain, Germany and Scandinavia. One exception to this decrease in sales is the region of Majorca, with the best beaches and the best hotels Majorca, which experienced the most profitable year to date. Ironically, it the area with the most inflated priced property of all the island. Not only have sales remained stable, they have actually increased.
There is fine balance between supply and demand. New developments are under strict supervision, in hopes of leveling out the current drop happening around the rest of the island. Other notable hot spots in the Balearic region, are the islands of Formentera, Ibiza and Minorca. And according to statics provided by the National Institute on Statics in Spain, tourism has risen by just about twenty percent. So has the immigration risen, bringing travelers and future residents from Italy, Morocco, and London. As it stands, of the current local population, foreigners make up thirty-five percent. With some planning and careful executed ideas, the decline in the real estate market on Majorca, and all of the islands will bounce back by the close of 2009
Related posts: