Foreigners are buying houses valued in more than 1 million Euros in Baleares

Foreigners are buying houses valued in more than one million euros in Baleares

-The Balearic Islands capture all the sales of luxury real estate properties of one million onwards.

  1. -The number of transactions have triplicated since 2013 and the prices have climbed a 25 %.

 

The luxury real estate market does not understand what crisis means in the Balearic Islands.The sales transactions of buying homes worth more than one million euros benefit the island and  have lately skyrocketed. The sales can be noticed so much that the Balearic Islands lead the transactions of these type of properties to foreigners above any other autonomous region in Spain. This has been like this since 2009, during the whole recession, which gives an idea of the attractiveness that the Balearic Islands continues to treasure for investors from outside our borders.

 

According to data and statistics handled by the General Council of notaries, which EL MUNDO/ El día de Baleares have had access to, in the first trimester of the year 50 properties have been sold with a value superior to one  million euros in the Balearic Islands, the triple a year ago, when the figure was closed with 17 operations. An amount that supposes an increase of 294% and represents more than one-third of the total number of transactions in the rest of the country (144) and which is far superior to other communities such as Andalucía (35) or Cataluña (24).

 

These results are no surprise, since they have been long observed in the real estate of Mallorca. The high-class housing sector is still maintained among the foreign population despite the fact that prices have also evolved in the same direction, upwards According to the data of the notaries, in the last year a square metre in the Balearic Islands has soared a 25.4% in these type of properties. With a cost of 4.378 euros in the first quarter of 2013 to 5.491 euros that it costs now, the Balearic Islands is where you pay the most for a square metre in the whole of Spain. In addition, it is also a 25% higher than the State average.

 

The average value in closing transactions in the Balearic Islands during the first quarter of this year was of 1.7 million Euros, a 17% lower than last year, which was about two million, approximately.

The reason for this decrease in the overall cost is simple. The average surface of the properties acquired by foreigners has also been reduced considerably, and this means that the total investment has been reduced in the same way. Therefore the 466 square meters that made up the standard house bought by clients has passed to 308 square meters today, a drop of more than 30%. A surface that can be found already 28% below the national average

 

As for the evolution of sales, it could not be  more positive for the Islands. The Balearic Islands remains one of the most attractive areas to invest for foreigners and the total number of operations has not stopped growing since 2009. Sales have incremented from 125 sales in 2007, to 182 last year – some for an amount of nearly nine million euros. Germans and British are the nationalities that are right now buying two out of three properties.

 

The prospects for this year are equally encouraging. In the first quarter of the year the figure has triplicated the figure obtained in 2013, although these figures are not yet official, the figures from April and May are equally positive, well ahead of other communities in the rest of Spain.


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