April price rises in the Spanish islands

April price rises in the Spanish islands

Valuation company Tinsa has reported that the Balearic and Canary Islands are the only regions in Spain where house prices went up in April over the previous year - an increase of 3.3% versus an average 10.5% decline for the rest of the country.

Daniel Chavarria Waschke, Managing Director of Balearics Sotheby's International Realty with offices in Mallorca and Ibiza, says, "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. Meanwhile we said that demand for holiday homes in Mallorca had remained high throughout the 'crisis' largely due to the mix of nationalities involved, with more than 80 per cent of buyers non-Spanish.

We believed that at the top end, the worst was over for Mallorca and recovery would accelerate in 2013. 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."

Spain has had a rather tumultuous few years with Tinsa calculating overall house price falls at 37.2 per cent from peak values in December 2007 when the bubble burst.

The mainland Mediterranean coastline is home to the highest falls at 45.1 per cent and the capital and major cities with populations greater than 50,000 next at 40.4 per cent.

The Balearic and Canary Islands prop up the table with falls of 'just' 24.5 per cent from the peak, with a positive turnaround now on the cards. Spain cannot be judged as a whole, but the sum of its parts.

What's more the latest figures from the Spanish government reveal that overseas buyers are increasing - still led by the British.

Official statistics on the distribution of overseas buyers in Spain in 2012 show that British buyers still bought more properties than any other nationality with 4,148 purchases - 16.63% of the total bought by foreigners and 1.35% of the total number of properties bought including domestic Spanish buyers.

British buyers bought 4,148 properties in 2012 against 4,007 in 2011.

The number of properties bought by foreigners as a percentage of the total number of property transactions is on the increase and matches 2006 and 2007 levels.

Market recovery may well be accelerated by Prime Minister Mariano Rajoy's statement of intent to offer indefinite residency to foreigners purchasing a home priced in excess of €500,000, significantly higher than the €160,000 first suggested in November 2012.

This is still only a proposal - a more detailed draft of the proposal is expected by the summer - but there has already been strong interest from China and Russia, nations keen to access one of Spain's millions of empty homes in return for lucrative residence.

This €500,000 threshold plays into Sotheby's International Realty's hands as in Mallorca the company focuses exclusively on villas priced above €2 million euros and apartments above €500,000, whilst in Ibiza the bar is set at villas above one and a half million euros and apartments above one million.

Pictured here is a six-bed villa refurbished in 2012, with spectacular views of the sea and the harbourside of Port Andratx, Mallorca. Located in the prestigious residential area of Monport, the villa is split into two parts so would suit two families or one that loves to entertain.

The guest accommodation even benefits from its own living-dining room with kitchenette and outside an 8m x 3m private pool alongside several terraces.

Meanwhile the main home, with more than 200m² of chill out terraces and an outdoor kitchen, has a further 14m x 5m swimming pool with incredible sea views.

It is €7.45 m through Mallorca Sothebys.

To see our comprehensive guide to buying in Spain or for more affordable properties in Spain, search here.

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A Place In The Sun