Conflicting predictions from the real estate market Balearic Islands

27.11.2010 20:37
Real Estate Market Analysis | Conflicting predictions from the real estate market Balearic Islands A survey among developers working in this region of Spain, showed that the reasons for optimism while a little. However, the leadership of the Association of Balearic developers disagree.

According to a recent survey of participants of the construction sector of the island of Majorca, 95% of developers said that things in business are less than 4 months ago, 81% think that everything else is going downturn in the economy and 87% believe that next year the situation will only worsen According to an authoritative portal SpanishPropertyInsight.

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However, according to Spanish media, the president of the association of developers Balearic Islands Gabrielle Oliver said that sales this year was high. He also noted that by the end of 2010 it is planned to sell 4,000 new homes. Thus, the volume of unsold housing will be reduced to 2000 objects (34% of the total). Therefore, in the second half of next year may increase the demand for new homes that will revive the construction sector.

He also said that prices of homes on the island have reached the "bottom". Mr. Oliver has warned developers that they can not remain on the roar, if they cut prices even more. According to him, in mainland Spain, prices fell harder, because the selling pressure is much greater and the banks get rid of the unpaid mortgage houses, play a huge role in the market. Balearic property developers, by contrast, maintain a high level of prices, and nobody expected them serious fall.

Content tags: Overseas property
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