Property in mallorca outperforms mainland

Photo: Overdaforest

Prices jumped in the third quarter of 2013 by 4.8 per cent year-on-year, according to data from the National Institute of Statistics. Indeed, the NIS forecasts continued growth of 4.4 per cent in the rest of 2014.

That trend is driven by demand for real estate, notes the estate agency. Indeed, recent figures from the Land Registry revealed that the Balearic Islands accounted for the higher number of property sales to foreign investors in 2013.

Data from the Spanish Association of Notaires recorded 1,642 foreign buyers in the Balearic Islands, principally in Mallorca. Indeed, the island is hugely popular with overseas investors, many thanks to its strong tourism sector, which saw flight arrivals jump 7.9 per cent year-on-year in the three months to September 2013. The restrictions place on land, too, means that supply unlikely to ever exceed demand.

"House price data from property portal Kyero accentuates the different nature of the top end of the Mallorca property market in comparison with the rest of Spain," notes Chesterton Humbers, "where it is widely reported that house prices are currently half the pre-recession peak level."