Property crisis hits Balearics as expats shy away

21st March 2007, Comments 0 comments

21 March 2007, MADRID – Foreign investment in property in the Balearic Islands has fallen by 25 percent due to high prices, a report claims.

21 March 2007

MADRID – Foreign investment in property in the Balearic Islands has fallen by 25 percent due to high prices, a report claims.

Once the favoured destination of Britons and Germans hunting that place in the Spanish sun, now the islands have fallen out of favour, claims a report published on Wednesday in the Spanish daily El Mundo.

Experts claim instead of what was once called ‘German fever’, with so many Germans buying up properties, now numbers have fallen in the past three years.

Mariano Ogazon, an estate agent who specialises in foreign clients, said: "In the last three years, Majorca has suffered a severe recession in terms of German and British buyers. We are talking a 25 percent fall.”

The cause, claims Ogazon, is the rise in prices, which now reach EUR 5,400 psqm for a medium class apartment and 4,500psqm for chalets.

Now only richer clients can afford to buy homes and the higher end of the market is the only one which is prospering, the paper claims.

[Copyright EFE with Expatica]

Subject: Spanish news

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