Since the global financial crisis overseas property buyers have changed from those who want to make a quick buck to ones seeking a better quality of life. The fact is confidence is low in real estate investment especially where buyers need to buy off plan. My experience shows that buyers are concerned more about risk and how to exit more than ever before.
There is one region that is seemingly bucking the trend, my observations are based on analytical evidence from a overseas property portal with hundreds of thousands of enquiries each year. The region that has got me so excited is the stunning region The Balearic Islands
Demand for real estate on the Balearic Islands is strong due to the 'aspirational' nature of the island group. That's the view of a leading property expert who believes that the archipelago attracts a wealthier type of British buyer.
The islands of Ibiza, Mallorca and Minorca have long been popular with British holidaymakers and property buyers. With limited supply of properties on the island, price falls have also been lower than mainland Spain over recent years. Keep reading to learn more about property prices on Spain's Mediterranean islands.
Demand for property on the Balearic Islands
Managing director of Mallorca and Ibiza Sotheby's International Realty also agrees with me that the demand for real estate on the Balearics is strong which is helping to prop up prices on the islands.
He said: “The Balearics are a much more aspirational destination and, with higher property prices and lower supply of quality homes than the mainland, attract a wealthier expat.”
Ibiza, Mallorca and Minorca are the three main Balearic Islands although other islands such as Formentera and Cabrera are also popular. They are located in the western Mediterranean and have a combined population of around 1.1 million people.
While strong demand from overseas buyers and limited supply has helped house prices on the islands, the value of homes has still fallen over recent years.
The most recent figures published by Tinsa revealed the cost of buying a property in either the Canaries or Balearics fell by 9.8 per cent between March 2012 and the same month a year earlier. However, this is still below the average national decline of 11.5 per cent during the same period.
The Balearic islands have long been one of the most popular destinations with both British tourists and expats. With easy access from the UK, a great climate and some beautiful properties, prices have performed better than other parts of Spain over recent years. ”
Where there is demand you will see house price increases and the best time to buy or invest is before the demand becomes excessive. Savvy buyers can make a profit on the purchase and now is a good time to consider buying on these islands.
Think About Selling Before You Buy
It may seem strange but I always recommend buyers to think how they would sell and importantly who too. Exit strategies are important and knowing your potential exit will help you buy with confidence.