Chopera Mallorca has been taking quite heavy hits too but overdevelopment was not that bad there. Not everyone is rich and the normal people that lived there with no rich relatives actually have it harder because of higher prices on the island than the mainland.
My point is that prices have dropped in places like Mallorca for reasons other than the over supply of property. Same goes with the prime areas of Barcelona, Madrid, San Sebastian ,etc – a million empty homes on the costas are going to affect those markets as much as a million empty homes in Liverpool would affect house prices in central London. And I also think that at some point people will say to themselves hey I can afford a flat in the Eixample, or a villa in Mallorca, and they’ll go for it. At some point those places will bounce back much more than other areas simply because they are desirable places to live. I agree that locals in Mallorca probably suffer from high prices – it’s the same everywhere there is a demand for second homes. I’m not saying it’s a good thing, it’s just the way it is.