Mallorca, Canary Islands and also Costa del Sol announce growth in property prices

Although Spain has not yet recovered from its property price crisis, some Spanish regions are experiencing an unprecedented boom. Examples of this can be found in the Costa del Sol, Balearic and Canary Islands regions of Spain.  

On the Balearics (Mallorca, Menorca,..) and on the Canaries, the average price of property has risen by 3.3 %, which is the complete opposite to other regions in Spain. Statistics show that property prices in less attractive regions are falling: in 2012, this was an average fall of 10.5 %. 

It is clear that the growth of activity in the regions such as the Balearic Islands is dictated by the type of property buyer. The vast majority (up to 80 %) of them are non-residents who, understandably, choose the best places and most beautiful localities.     

Real estate experts agree that the Spanish property market cannot be assessed as a whole. Since Spain covers such a large area, its geographic variety and the peculiarities of certain areas, it is a good idea to focus on each area separately. A good example may be the impact of the economic crisis – regions on the Mediterranean coast were hit with a drop in prices of 45%, while the drop in the case of the Balearic and Canary Islands was only 24 % and they are recovering very quickly.

It can be expected that the situation will improve over the coming years. This could be helped by a proposed law which would introduce the opportunity of gaining resident status to all those who buy property of a certain value. Even without this law, however, there is an obvious rise in interest in exclusive properties.   

The greatest interest in lower-priced properties has become traditional from the United Kingdom, Scandinavia and other, mainly European countries. These people interested in buying properties usually look for buildings on the Costa del Sol, which is contributing to a fast recovery in this area. This recovery is also helped by the increase in flights to Malaga Airport – travelling is therefore becoming cheaper and cheaper and making the region more accessible.

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