Property News

Britons helping to drive foreign property market

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Deya is proving popular thanks to the strength of the pound

The Balearic Tax Agency has grossed so far this year some 80 million euros from the sales of properties to foreign buyers. This revenue is derived from a total of 3,051 transactions involving 921 million euros investment.

The average value of property being bought has gone up from 325,000 in 2014 to 400,000 euros, though this does depend where the property is and which nationality is doing the spending. Among Swiss, Swedish and British buyers, there has been a good deal of property movement in the three to four million euro range. Areas of the island that have been attracting most interest are Palma’s old centre and the coastal area between  Palma and Puerto Andratx. Deya, Valldemossa and fincas in the rural interior have also been in high demand. The strength of the pound, the Swedish krona and the Swiss franc has resulted in something of a bonanza of property buying, with prices, though still high, not as generally high as they were pre-economic crisis.

Notary and land registry information suggests that the Balearics is the Spanish leader for sales worth a million or more to foreign purchasers. The 2013 law on enterprise has also influenced purchases from overseas, in particular from Russia for luxury real estate. Russians spending over half a million euros can benefit from being able to obtain residence visas, which still need to be renewed every two years and have to show genuine residence on the islands.

Foreign real estate agencies are, meanwhile, reporting short-term increases in foreign purchases of Majorcan property.

2015-11-27 Palma By