The Spanish property market recovery is being led by the Balearic Islands, with foreign buyers providing the catalyst both in Mallorca and Ibiza.
The Spanish Infrastructure Authority announced that more than 40% of property purchases on the Islands in the second quarter of 2015 were made by overseas buyers.
Figures from the Ministry of Development show that property transactions in the Balearics this year are up more than 30% over the same period in 2014, and increased by 13.9% versus the first three months of the year.
“This is great news for the property market in the Balearics, and certainly reflects what we are seeing in Mallorca,” said Alejandra Vanoli, managing director of Mallorca Sotheby’s international realty.
“The figures represent the second best quarter of growth in the past five years, and overseas buyers are a hugely important part of the picture. They drive along the local market both in resales and new properties, and overseas transactions have provided much more liquidity in property in recent years.”
Glynn Evans, managing director of Ibiza Sotheby’s international realty, added: “There is no doubt that overseas buyers are driving the property market across Spain, and in particular in the Balearics. National Spanish newspaper El Pais has highlighted Ibiza as an example of this and said that up to 50% of property buyers on the island are from overseas, which is indicative of our experience in the market. These are exciting times for property in the Balearics.”
Statistics quoted in the German-language Mallorca Zeitung show that overseas buyers are attracted to the higher end of the property market, spending almost 30% more than the average purchase price on the Islands and no doubt determined to secure the best properties they can. However, British buyers are still the most numerous across Spain, making up more than 15% of the national market, with French, Russian, German and Belgian buyers increasing alongside. In the Balearics, German buyers were equally numerous as the British.
Meanwhile, the number of travellers passing through the main Balearic international airports hit a record high across the first eight months of 2015. Palma International Airport saw 2.1% more passengers than the same period last year, with Germany the most popular starting point, while Ibiza Airport increased passenger numbers by an incredible 8.7%.
Additionally, the Balearic Ports Authority has announced a 20% year-on-year increase in cruise ship passengers coming into Palma during the first half of 2015.