Covid-19 Property Market in Mallorca Impact
How is the real estate market in Mallorca going to fare this year?
Where is this pandemic going to take us? The jury is out. That’s for certain. And in a time when practically nothing is, how do we navigate the property market somewhere like Mallorca?
None of us have lived through this kind of health crisis before. Some of us are wishing for it to all blow over fast, and go back to normality. Others of us may be hoping for a shift, towards a new normality, a better one. Either way, we just don’t know.
What we do know is that the financial effects of the Coronavirus pandemic are being and going to be felt financially for some time. This however, is something we have lived through before!
In 2008 the world markets collapsed and the property market in Spain was shattered.
However, Mallorca real estate stayed afloat. Prices barely dropped. Sales, though slow, continued. We realised that despite all the turmoil, people still want to buy houses in Mallorca. They still want to move here, holiday here and invest here. In fact, in many cases, the interest in an island property rose, and has continued to do so ever since.
Mallorca is vastly different from one part to another - varied in such a way that it is almost unbelievable that such a relatively small place can encompass such diversity - in geography and investment value. These of course go hand in hand.
The property hotspots, and there are a few, tend to be near the coast, either in and near the capital city, Palma, along the Tramuntana Mountains, and in the north - in Pollensa, Puerto Pollensa, Cala San Vicente, Formentor and Alcudia.
There was building and renovation work going on right through the lockdown. And now there is more than ever. Real estate is certainly changing hands and getting refurbished. Townhouses and villas in the towns and villages of the north of Mallorca are in high demand. Everyone wants a place in this tranquil and safe part of the world.
Tourism is taking a hard hit this year and in a place where most of the economy is directly or indirectly dependent on tourism this is harsh. People are just too scared to travel. But those who do travel are looking for somewhere they will feel safe and can isolate - and what better way to do that than rent a villa - or better still - own one!
So whereas the hotels may be barely full, villas and townhouses are getting let and bought - despite the current situation. Or possibly even because of it.
Having said this, some foreign owners are rethinking living on the island now. They want to move back home to be nearer their families and are putting their properties on the market. If you are looking to buy property on the island this could be a very good time to do it. Owners may be more flexible with their asking price.
If you would like to have a look at our latest listings, please follow the link below:
Property Listings at Sol Mallorca Real Estate
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