Property sales in the Balearics grew by 32.3% in August this year compared to the same month in 2011, reaching a total of 901 transactions according to a recent report by the National Statistics Institute (INE).
Further data shows that of the 901 property sales made in August, 56% were for previously owned homes representing a 61% increase over the same month in 2011 while 44% were for new housing.
Marc Pritchard, Sales and Marketing Manager at Taylor Wimpey España comments,
“In terms of new build property sales, there are only very few new developments around for buyers to actually snap up and we are literally the only developer building right now. In my opinion, when it comes to previously owned homes, there are bank owned properties which are new but could be classified as second hand because they have taken them on from property developers.”
Meanwhile, nationwide, house sales in Spain increased by 3% in August compared to the same month of 2011 according to INE reaching a total of 27,708 sales transactions, of which 49.8% were for previously owned homes and 50.2% were for new properties helping put an end to a streak of declines in sales over the last 17 months.
As one of the most popular Balearic Islands, Mallorca has seen an overall steady increase in property prices according to the latest Q3 2012 Spanish House Price Index report from Spain’s largest English language property portal, Kyero.com which highlights a consistent rise in asking prices from €420,000 in March 2011 to €467,500k in September 2012.
“Top properties in prime locations do sell at the right price in Mallorca. Prices are stable on the island – it’s a resilient market with a good reputation.
“One thing to note is that the German market is definitely back. We have certainly seen much more interest from German buyers – probably the strongest in 10 years – on Mallorca. Last month 21% of our sales came from German buyers.”
For property hunters looking for high quality affordable property, Taylor Wimpey España has some excellent properties on offer in Mallorca at only 4% VAT until the end 2012 and capital gains tax at half the normal rate (when you come to sell) if you purchase before year end.