The decline is caused by the decreases in prices of houses attributed to the world’s economic crisis. On average it is estimated that the price of homes in Spain is 4.4 times individual’s gross salary. In other countries, it is 6.1 times individual’s gross wage. In Britain and France, it is 8.5 times. This means that it is cheaper to buy property in Spain than in any other part of Europe.

The last real rise in the price of property in Mallorca occurred in 2008. The past few years have in fact witnessed a fall in price of property in Spain. However, in 2013, the price of new homes registered an increase in price by 1.9 percent. This was the highest price increase since 2008

Evidently, there are clear signs that the Spanish property market is on a steady recovery path and that the falling prices of houses will come to an end soon. Recent activities where projects that were half finished have been completed shows that people are investing more in construction. This signals that that the industry is picking up. However, it is worth noting that it may take some time before the property market stabilizes. The high unemployment and the surplus of property in Spain and particularly in Mallorca are expected to keep prices low. Any increase expected to be witnessed will not go beyond a single digit figure.

According to the latest report from Moody’s investor service, prices for houses in Spain will fall for at least another year before any meaningful rise is experienced.

It is worth noting that people who bought and sold property in Mallorca in the recent years have experienced problems with their estate agents. It is has been cited that poor communication skills among the agents is the main cause of such problems. It has been claimed that the agents care little about clients and in some cases, do not disclose material fact about the property being sold. Such facts include the general state of the property and existing faults. The agents have also been accused of overpricing the property and being dishonest by not describing the property to be sold.
Meanwhile, if you are an investor looking for an opportunity to invest in, choosing real estate may be the best way to go based on the latest report released by the ministry of development. The report says that the housing market in Spain is showing signs of recovery and if he 22,255.1 million Euros worth of property transacted in the first half of 2014 is anything to go by, things will become better in future. Anyone who invests in this sector is likely to rip the fruits in a few years to come.

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