As with other quality areas, the heat has gone out of the property market in Mallorca and Menorca, and serious vendors are starting to accept reasonable offers. Some segments are seeing bigger reductions than others, with the biggest percentage reductions at the cheaper end of the market. However, there is no sign yet of a slump in prices, and given Mallorca’s upmarket appeal, and its overall quality of housing stock, it is difficult to imagine that prices in Mallorca will slump. If there is a recession, and a wider market housing slump, it is more likely that Mallorca’s affluent owners will simply withdraw from the market.
The same is true for quality property in Ibiza, for instance luxury coastal villas and prime rural properties. However, apartments on over-developed beaches, and around the town of San Antonio, could well fall significantly in price.
Asking prices in Formentera may adjust downwards, but prices are unlikely to fall. With its exquisite natural environment, and little new development, Formentera is probably more insulated from a property market downturn than anywhere else in Spain.
© Mark Stucklin (Spanish Property Insight)