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Mallorca to be hot in 2007
Mallorca looks set for great things this year after accounting for 80% of Spanish sales at UK giant Chesterton's in 2006...
Commenting on Mallorca's appeal, Nick Freeston, director of international departments at Chesterton International, said: "Average capital growth was 12.8% and in 2006 Mallorca is proving to be our hottest market with growth levels anticipated to be in double figures."
Alex Herrero, Consultant - International Department at Chesterton Global, commented: "A significant percentage of Chesterton International’s sales for Spain in 2006 have been in Mallorca, this is because of the superb range of properties available to buy with good entry level pricing and a healthy price mix starting from £130k for a 2 bedroom apartment."
Herrero continued: "Mallorca has smaller developments compared to the mainland giving a more exclusive feel. There are strict building guidelines as to what you can build, meaning a reduction of large scale developments. There is easy access from the island’s major airport and the island is a good golfing destination as well as having beautiful coastal areas, great beaches, food and culture.
Spanish market dominated by holiday home investors
Chesterton International reports that 65% of its clients that have bought in Spain have been second home purchasers wanting to use the property as a holiday home and as a long term investment. 25% of purchasers have been investment purchasers looking for good rental yields. 10% of purchasers have been retirement purchasers, in search of the sun.
According to Chestertons, the overall Mediterranean market remains solid due to climate, type of product & price range, as well as low cost carrier affordability.
Herrero added: "Whilst the Mediterranean islands of Crete, Cyprus and Menorca remain popular they are not seeing the same levels of overseas purchasers as other areas in Spain. The number of investors that flooded the Spanish market between 2001 and 2004 has reduced and with significant stock levels now nearing completion the number of re-sale properties available has risen."
Mallorca is currently one of the most popular destinations for British and North European tourists, with 300 days of sunshine a year and direct budget flights into Palma from 23 UK airports and 21 German airports.
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