Market Situation Coronavirus 2020
The consequences of COVID-19 are also noticeable on Mallorca…..although Mallorca is also the region of Spain with the lowest number of infected persons; currently 169 persons (as of Thursday 19.03.20) are affected on the Balearic Islands. The islands of Mallorca, Menorca, Formentera and Ibiza have one of the lowest infection rates in Spain. There is no panic among the population and the supply of food is guaranteed. The more than 10 private and public clinics are excellently equipped and currently report no problems with occupancy. The schools & kindergartens are all closed and the children are taught at home and are connected to their teachers via internet. Mallorca has acted quickly compared to other countries and has closed both the port and the airport as far as possible - but the supply of food, medicine and other important things is still guaranteed.
In these turbulent times, the number of enquiries from clients who have visited properties with us in recent months and were very interested in buying a property, is increasing. For them, the questions are: Buy now (a purchase option contract with a 10% down payment as a rule) or wait…..whether the prices will possibly fall.
Our opinion on this:
The prices/rates on the financial and capital markets are in a strong downward trend. There is no interest for larger balances on bank accounts. On the contrary, the banks are demanding penalty interest. The prices of precious metals are also falling. These circumstances influence many clients to invest part of their liquidity in real estate in selected markets. Mallorca is, as an investment location and popular destination in Europe, especially predestined as well as very resistant and this will not change in the future.
Conclusion: Due to the lack of investment alternatives, an engagement in real estate in Mallorca is still highly recommended. The prices for real estate have risen continuously over the past decades.
Talk to us: Our real estate consultants are available at any time.
We wish you and your families a cool head and above all health.