According to the statistics provided by the notaries of Mallorca, Ibiza and Menorca, the number of real estate transactions to non-residents in the Balearic Islands has been increasing steadily in the past years. From 1.642 properties sold to non-residents in the Balearics during 2008 there has been a surprising increase up to 3.571 properties sold in 2012.
This is a tendency that began immediately as the international financial crisis hit in 2008 and has not been interrupted since then. In 2008 the purchase transactions fell by 41% in comparison to the previous year and since then they have not stopped rising – always with a double digit increase. In 2009 non-residents purchased 2.279 properties in the Balearic Islands, which represents +38,8% more than in 2008. In 2010 the figures rose by another +19,4% to 2.721 transactions and further +11,9% to 3.045 in 2011 and finally by +17,2% to 3.571 real estate purchases last year 2012.
According to the figures provided by the notaries, the predominant client group in the Balearics is the German market, with a total of 1/3 of all of the properties sales to non-residents in the Balearic Islands. Whilst in 2008 there were barely 396 sales to German purchasers in 2012 a total of 1.303 real estate transactions to German purchasers were recorded.
The increase in demand by other nationalities has also been clear despite the international crisis and the difficulties of Spanish economy:
Sweden 2008 –> 27 properties
Sweden 2012 –> 168 properties
Russia 2008 –> 35 properties
Russia 2012 –> 86 properties
Apart from the traditional markets, others like china, Italy, France, Rumania and Argentina have also achieved increases of 300% over the last years. On the other side is the British market that has only moved from 557 to 627 sales in the Balearics between 2008 and 2012, only producing a 12,5% increase.
These numbers confirm a highly interesting fact: despite the economic turmoil of the past years, the Balearic Islands have not only held their position for investment, but have notably increased sales to Germans, Swedes and Russians.
The small development of the British market is due to the internal economical issues in the UK added to a dramatic drop in the exchange rate over the past years. The most recent weeks nevertheless demonstrate that with a slight increase in the exchange rate in favour of the pound sterling there is an immediate response for Brits who are prepared to invest their money into a property on the Balearic Islands. It will be very interesting to observe this market in the next year, since the potential is huge.
Original Source: El Mundo