Balearic property prices edge closer to london

Photo: DMC-RTASpain

According to September research from Savills, prime ‘second hand’ property in south west London is valued between 510 and 990 pounds per square foot (5,490 and 10,656 pounds per square metre) and for the east of the City between 500 and 790 pounds per square foot (5,382 and 8,503 pounds per square metre).

High prices in London are being blamed on strong overseas demand – it’s no different in the Balearics. Daniel Chavarria Waschke, Managing Director of Balearics Sotheby’s International Realty, says, “Due to ease of access from most northern European cities, more than 80% of our buyers are not Spanish.

Looking at the year to date, half of all our enquiries are from Brits and Germans, 34% and 21% respectively for Mallorca and 40% and 10% for Ibiza, and they are placing high value on location alongside quality of construction, a considered layout and a superior level of decor. Tastes are more refined and budgets seemingly limitless, but supply is relatively low – hence the surprisingly high property values we’re now experiencing on the Islands.”

“Whilst the assumption may be that it’s Russian or Middle Eastern buyers who have been spending an average of 9,000 euros a square metre on property with us this year, that’s not the case,” continues Daniel, “in fact two thirds of our purchasers have been British, with German, Swedish and the occasional Far Eastern buyer making up the minority third.

Brits certainly feature very strongly in 2013. Whether the balance will switch further afield to China, Hong Kong and Russia when Spain’s new Golden Visa legislation takes affect remains to be seen.”