Mallorca property prices 'will go up'
By Steve Binge

Mallorca property prices 'will go up'

One real estate expert in Mallorca has claimed that property values on the island will rise over the coming year.

Euro Weekly News reported on comments about the state of the sector in the Balearic Islands made by president of the Balearics Property Developers Association Gabriel Oliver to Spanish news provider Europa Press.

Mr Oliver explained that a lack of funding for new construction projects means that demand is set to outstrip supply by 2012.

He stated: "There will be no stock, especially in the big cities like Palma," pointing out that by the end of this year, there will only be around 2,000 new-build properties available to purchase.

This contrasts with the average of 3,000 transactions that take place on Mallorca each year. As a result of this constricted supply chain, he predicted that real estate values will rise.

However, the latest figures in the General IMIE Index released by Tinsa showed that property prices in the Canary and Balearic Islands dropped by six per cent between September 2011 and the same month a year earlier.

This was still a better performance than the national average though and these markets were the most resilient of all the Spanish real estate sectors.

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