COVID EFFECT PROPERTY MARKET:
Mallorca property residential market relys heavily on foreign buyers which we have seen three quarters of that demand suppressed over the course of the pandemic so far this year 2020.
Some sales activity has moved online like video calls on demand for the interested properties, but most buyers still need to visit in person before they will purchase, so travel restrictions are a bigger obstacle in property sales than have been seen in other categories.
The absence of foreign buyers in the market has “put the high-end segment in stand-by mode”. This, along with the lack of tourists, has been keenly felt in the upmarket Balearics. Nevertheless there has been closed sales on luxury properties with some slight negotiated discounts from the asking price, but the demand of buyers has been lower than pre-pandemic times.
There is no denying the important drop we have seen in market activity, but we expect a strong recovery when we turn the corner and can expect a demand increase from foreign buyers for Mallorcas residential property market.
Resident and local buyers are still active and looking for opportunities, with a notable increase in demand for second homes in rural areas and the mountains.
The demands have increased from buyers for certain criteria of having outdoor spaces, nice views and locations. The real estate market in demanded locations like Palma and the south-west coast still maintains its value and could even increase more in asking price after the pandemic.
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