Balearic Isles still popular with the wealthy
By Steve Binge

Balearic Isles still popular with the wealthy

Property in the Balearic Isles is continuing to be popular with wealthy global investors, according to Sotheby's International Realty. Despite the market experiencing a downward price spiral, "well-heeled Europeans" and buyers from America, Russia and China are flocking to Mallorca and Ibiza.

Daniel Chavarria Waschke, managing director of Sotheby's International Realty, noted that Ibiza is particularly performing well. "Ibiza had its recovery year in 2012, light years ahead of faltering markets on Spanish mainland, and is already ‘booming out’ again," he said. "Even off-plan and in-construction property is selling at remarkable pace, usually the hardest product to sell in a typical holiday home market as buyers tend to want something tangible and finished. This proves Ibiza’s reputation as a safe haven for real estate investment."

Sotheby's claims that the buoyancy of the Ibiza market can be seen in the gated condominium resort of Cala Conta on the western coastline. Phase one of the development sold out 95 per cent off-plan in less than a year at prices of €1.6 million (£1.3 million) or more for each unit. High prices for prime developments aren't putting people off either and it is in fact these luxury homes that will be in the highest demand in 2013, according to Sotheby's.

The gated community of Vista Alegre is another example of where expensive real estate is selling briskly. Mr Chavarria Waschke explained that the development has proven popular with footballers from the Spanish national team, with nine sales going through in 2011. This was at a difficult economic time for Ibiza, when recovery was still taking place.

Mallorca is currently at this stage, but over the next year the Balearic isle looks set to shine. Currently, the country is ideal for those looking to obtain a bargain property, with most luxury homes experiencing a 15 per cent price drop. However, some seafront apartments or villas have been able to increase their value, with more than 80 per cent of buyers coming from overseas. German speakers are proving to be very active in the market, along with the British and Scandinavians.
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