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The residential property market should stabilise in 2012, with some property prices increasing slowly and only in prominent locations like coastline or countryside areas in Mallorca.

“Find a bargain in 2012 is possible, but far from the best areas “

The real estate market is the perfect reflection of a country with five million unemployed while luxury sales  grew by 20% in last year. the money is still there, but  in fewer hands.  To find a real estate  bargain in the depressed housing market is only possible away from the best areas.

Strong price reductions are to find also in Mallorca, but when searching for frontline locations or luxury developments in Palma de Mallorca, you will notice that property prices are similar to 2010 or even higuer.

The websites of the banks are full of lower budged properties like apartments in the suburbs, small villages or old buildings , but when looing to buy a luxury villa with a good sea view, prices are not strugling.

A look atthe offers of the last two weeks makes it clear: the vast majority of homes listed below 1867 euros per square meter offered by the Government as an average for the second hand property in Mallorca are in the rest of the neighborhoods mentioned. In areas closer to the center is still rare to find property below € 2,000 meters. And why in the case of the second housing it is true that prices have dropped, according to Public Works, the value has fallen from the highs of 2007 (2.380 euros meter) by 21% to 1817 the current average .

Sea or center: expensive property
Although in this case the mean is particularly misleading. In the center and near the seaside not far from fulfilled. About Marivent, for example, offers these days, a micro-studies of 26 meters on the tenth floor of 65,000 euros, to 2,500 meter. Bargain is advertised as, and probably is in the same area there are prices of up to 3,500 euros. The same is true in tourist towns such as Magaluf, where buildings that are falling to pieces over 2,000 listed euro despite the crisis and its state of decomposition remain profitable in the face of summer rentals. Those 2,000 euros minimum border are also found in the outer belt of avenues: the Pere Garau more central s’Escorxador, General Riera and sold to adjoining areas between 2,000 and 3,000 euros.

According to CBRE,  prime buildings will eventually stabiliseor increase  in 2012 although secondary properties will continue to decline as occupiers continue to take advantage of the ability to negotiate favourable terms and conditions in an oversupplied market.

Our real estate experts expect a pick-up in the residential property market this year, predicting an increase in the sale of residential investment portfolios over the course of the next 12 months.

More Articles:

http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/8956048/House-prices-What-will-2012-mean-for-the-housing-market.html

 

 

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