NEWSLETTER NOV  2013

Welcome to my Late Autumn Newsletter

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For those of you who are waiting to buy - NOW IS THE TIME ! There is a definite improvement in the market and I am sure that prices will now start to gradually increase. Not all sectors are flourishing but certainly the upper end properties (i.e €1.5 million upwards) are stabilised and selling.

Property prices have risen by 0.4% last month and the Balearic Islands have weathered the financial crisis considerably better than the rest of Spain according to official statistics. In fact they predict a shortage of "first time buyer " properties by the middle of 2014.

It is a reflection on the market when I point out that throughout the recession over the last four or five years our "average sale price" has increased year by year. In 2007 our average was around € 2.3 million steadily rising to well over € 3 million in 2013. And the year is not over yet !

Sellers can also take comfort that they should be able to realise somewhere closer to their asking prices but buyers still want "a deal" !

Various other factors are giving a boost to the Mallorcan property market. The German election result will please most wealthy Germans. And with a slight "upsurge" in the pound against the Euro, property in Mallorca is an increasingly attractive proposition.

I am sure that prices have reached the bottom of their long lasting downward trend and sales are being made at levels closer to asking prices. So if you are thinking of buying - NOW IS THE TIME !

As everyone knows London continues to gallop along despite the recession - click on the link to see Savills latest publication. It showcases many superb new developments together with analysis on the market.

http://pdf.savills.com/edocs/resdev-showcase-2013/index.html

The Spanish Parliament has approved the law which allows non-EU buyers to become Spanish residents when purchasing properties above €500,000.
The idea is to encourage foreign investment in Spain and will take effect from 2014. It is good news for Mallorcan real estate market as it will allow non EU residents to obtain residency here in Spain.

The Balearic Government has approved the draft of the Land law which aims to enable the legalisation of houses which do not comply with current regulations and are built on rustic or rural land.

Subject to more generous limits. Owners who have, for example, built additional square metres without permission may have the possibillty to regularise these areas. The new law is expected to be passed early in 2014 but it is NOT a general amnesty and there will still be plenty of "ifs and buts" !

The new law does not apply to all types of property but mainly for those in rustic or rural areas - not urban or protected such as ANEI areas.

Simultaneously the law will get tougher on further illegal construction !

The new law is quite clear - if you wish to sell or rent your property you need such a certificate which we can help you to obtain. I have not heard of anyone being fined for not having a certificate but as the government needs the cash - no doubt the pressure will increase.