Prices for luxury property in Mallorca fell substantially in the last quarter of 2008, according to a report from Engel & Volkers, a network of agents in the Balearic Islands. The year over year prices for the high end of real estate in Mallorca fell by 30 – 35 percent, according to the report.
Sales for 2009 are predicted to be down as well, making it a good buyers market for those who are interested in this popular holiday destination. With substantial increases in value for property over the past decade, there is plenty of room for sellers to negotiate and still make a nice profit.
The downturn in prices varies throughout the island. British buyers have dropped off considerably, and the largest number of new purchases is coming from Germans, Swiss, and Spanish citizens. The market for apartments in the popular southwest of the island has dried up, and buyers who are looking for this type of property can find some great deals. In contrast, on the northeast side of the island, current owners are willing to wait it out until they get the best offer.
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