House prices rise in Mallorca and Ibiza
Although Spanish property has come under the spotlight for the wrong reasons recently, finally some good news has emerged from the country.
Valuation company Tinsa has reported that the Balearic and Canary Islands both experienced price rises in April 2013 compared to the previous year.
Both regions experienced an increase of around 3.3 per cent compared to the average 10.5 per cent property price decline seen across the rest of the country.
Commenting on the figures, Daniel Chavarria Waschke, managing director of Balearics Sotheby’s International Realty with offices in Mallorca and Ibiza, said, “This is consistent with the market predictions we posted in January this year when we stated that we had started 2013 with a real sense of positivity.
“We made reference to the fact that Ibiza had its recovery in 2012, way ahead of the mainland, and was already ‘booming out’ again.”
The earlier report by Balearics Sotheby’s International Realty also stressed that demand for property in Mallorca had remained strong throughout the crisis due to the fact non-Spanish buyers accounted for more than 80 per cent of sales.
Mr Chavarria Waschke said that the firm predicted the worst was over for Mallorca last year.
“Our crystal ball appears to be spot on with April’s 3.3 per cent house price increase reflecting that recovery. Long may it continue.”
He added that it is unfair to judge Spanish property by the performance of Spain as a whole given that significantly different local markets experienced in Mallorca and Ibiza.
The report by Tinsa revealed that property prices across Spain have fallen by 37.2 per cent since they were at their peak in December 2007. However, the bulk of this drop is attributed to the mainline Mediterranean coastline which has seen house prices drop by 45.1 per cent, with falls of 40.4 per cent seen in the capital and major cities.
By contrast, the Balearic and Canary Islands have seen falls of 24.5 per cent in the past five and a half years, with a more positive short term outlook.
Valuation company Tinsa has reported that the Balearic and Canary Islands both experienced price rises in April 2013 compared to the previous year.
Both regions experienced an increase of around 3.3 per cent compared to the average 10.5 per cent property price decline seen across the rest of the country.
Commenting on the figures, Daniel Chavarria Waschke, managing director of Balearics Sotheby’s International Realty with offices in Mallorca and Ibiza, said, “This is consistent with the market predictions we posted in January this year when we stated that we had started 2013 with a real sense of positivity.
“We made reference to the fact that Ibiza had its recovery in 2012, way ahead of the mainland, and was already ‘booming out’ again.”
The earlier report by Balearics Sotheby’s International Realty also stressed that demand for property in Mallorca had remained strong throughout the crisis due to the fact non-Spanish buyers accounted for more than 80 per cent of sales.
Mr Chavarria Waschke said that the firm predicted the worst was over for Mallorca last year.
“Our crystal ball appears to be spot on with April’s 3.3 per cent house price increase reflecting that recovery. Long may it continue.”
He added that it is unfair to judge Spanish property by the performance of Spain as a whole given that significantly different local markets experienced in Mallorca and Ibiza.
The report by Tinsa revealed that property prices across Spain have fallen by 37.2 per cent since they were at their peak in December 2007. However, the bulk of this drop is attributed to the mainline Mediterranean coastline which has seen house prices drop by 45.1 per cent, with falls of 40.4 per cent seen in the capital and major cities.
By contrast, the Balearic and Canary Islands have seen falls of 24.5 per cent in the past five and a half years, with a more positive short term outlook.
PUBLISHED : 22ND MAY 2013
