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Mallorca Properties are a good investment for the last decade. Property prices have been rising from 500 EUR a square meter up to 20.000 EUR a square meter. So some investors have made over 1000% on there initial investment. Especially properties in the southwest of Mallorca, like Santa Ponsa, Bendinat or puerto Andratx are very secure
Prices for Mallorca Properties are rising
Property prices in Mallorca rose strongly in the first quarter of 2008, even though they are having their problems like all property markets do, but they are still above geographical averages which helped them rise. Property prices dwellings are higher than on the Spanish mainland prices, unfortunately thought this still upward trend.
Average price for luxury porperties over 10.000 EUR a square meter
The national average price is now 11 000 EUR a sqm (appr. 10 000 – 13 000 EUR a sqm) but in the three main urbanizations in the south (Santa Ponsa, Andratx, Costa den Blanes) the average is much higher at 17 000 EUR a sqm. Property price rises and falls in Mallorca follow the basic trend of the Spanish property market, but how long will it be before all the “bargains” are snapped up? Will it be wise in the future to invest in Mallorca Properties? Always prices will go down, but I feel that prices will not reach the level they are at till 2013 at the earliest, even though there are falling prices everywhere.
A bargain Mallorca Property
As I have already stated – there are very few “bargains” in Mallorca right now, but definitely in the future this will change. The effects of the recession take effect over the next few months, the buying and selling of property in Mallorca will slow down, but the prices will stay above geographical averages. So obviously if you are looking for a buy to let property then it is a good time to buy. The low property prices of Mallorca and the strong overall property market demand are main reasons for this.
Spanish Government supporting the property market on Mallorca
But more importantly the Spanish government have ensured that Mallorca property prices will not fall completely nor at least not at a very fast rate, so buyers can make a very advantageous purchase. Some property investments in early 2008 have doubled my capital growth – so now I can double that! So to all this, I must say that Mallorca properties manages to stun the market quite regularly.
Good value Mallorca Property from 300.000 EUR
I know that I have not been there for the last decade but I had a look at a couple of properties, and they worth over 300 000 EUR in properties by another developer, so obviously they are good value. I must say that there are a few new developments that are worth getting into (especially if this is your main source of income) – but I must say that major prices have double increase since 2007 so there are still good ” bargains” to be had, but of course you have to know your market and be financially strong to take advantage in the good times.
Mallorca Properties are always a good investment
Mallorca could be the best investment in the world right now, but the slightest mistake can cost you a lot of money. Few adjective – Is the best investment in the world. So there no way of knowing exactly how much money you have to spend. But many people are advising against any investments that require a huge amount of money up front. for Example a second mortgage, which could reduce the amount you have to put in. This would still leave you with over 100% equity in the property.