The latest statistics from the General Council of Notaries indicates that prices are starting to rise quite sharply in Mallorca. These figures from the 3rd Quarter of 2015 show that Mallorca, and the wider Balearic Islands, saw inter annual price rises of 9.3% significantly higher than the Spanish national average of 2.7%.

Price rises nationally were certainly not uniform with the highest increases in Galicia (13,3%), Mallorca (and Balearic Islands) (9,3%), Canary Islands(6.7%) and less but still well above the average in the Comunidad Valenciana, Aragon, Madrid and Cantabria. Below average increases were seen in Andalucía, Asturias, Catalonia and Castilla-La Mancha. Finally some areas are still suffering from negative price adjustments of between 2,5 and 4,3% in Extremadura, Basque Country, Murcia and Castilla León while the worst performing regions were la Rioja (-10,6%) and Navarra (-16,4%).

While, as I always say, individual statistics need to be taken with a pinch of salt, longer term trends are valid and certainly in Mallorca we have now seen  various different indices / reports over the last 18 months (and in some cases longer) demonstrating that the Mallorca Market is definitely moving upwards both in terms of transaction levels and prices. Again we need to caveat that with the additional comment that the Mallorca market certainly has two faces, or two “tiers”, with that which is out performing being the best quality properties in the best locations, particularly those that are attracting international buyers.

I remain of the opinion that while one can never over look the possibility of major macro economic “shocks”, the underlying picture for the Mallorca economy and Property Market is sound and I expect to see future price growth throughout the next 18 months in all of the major areas that attract foreign second home buyers or those looking for full time relocations.

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