Finally, the recognition that the elite real estate market in Mallorca cannot work in isolation and now comes under similar pressure, affecting the markets of Mallorca and Spain. Evidence from Calvia, one of the most exclusive and highly valued areas of Mallorca, including not only the village of Calvia, but also the popular cities of Bendinat; Portals / Portals Nous; Santa Ponsa and Paguera, lies in the fact that in recent years, prices for luxury villas and country houses have dropped by 30%.
This contrasts sharply with what happened until real estate prices in Mallorca at Luxury prices did not seem to have risen, despite the sharp jump in the market and the rather terrible economic background. This seems to define simple logic, and although there has always been an argument that the supply side was and is, reliably limited demand plummeted, financing is difficult, if not impossible, and then prices are unstable.
The British owner seems to be the largest seller who is not doubted due to economic problems at home, but is also encouraged by a sharp drop in Stirling and the opportunity to sell at lower prices in euros, while retaining all if not all of them capital, when transferring funds back to the UK. In other words, the British owner can afford to adjust their asking prices down and be more competitive, without a significant reduction in the actual net income to Sterling. The downside is that the Germans are net buyers along with other national denominated euros.
At the level of individual cities, some areas appear to suffer less than others, mainly due to supply problems and the availability of land for new developments in real estate in the future. For example, in Bendinate, where little explored land remains, a relatively small number of registered prices were recorded, while in Santa Ponsa / Nova Santa Ponsa, Costa de la Calma and Paguera you can see some significant price adjustments. .
One of the biggest falls in the asking price, 38%, was registered in the village of Calva, where the price is being asked for a property with a main house of 400 m2 (3 living rooms, 5 bedrooms and 4 bathrooms), two guest houses, wonderful tropical gardens, a swimming pool , stables and sand school, was dropped from 4.3EUR million to 2.6EUR million.
