Majorca´s property is getting cheaper

Majorca property down by 2 percent

THE cost of private property dropped by 2 percent in the Balearics in the second quarter of the year in comparison with the same period in 2009, the National Institute of Statistics (INE) reported yesterday.

The downturn, furthered the INE, is greater than the average decline of 0.9 percent registered in the rest of the country for the same period.

In line with the Housing Price Index (IPV) which measures the growth and decline of buying and selling prices on the open market, the cost of private property rose in Spain by 1.6 percent between April and June, over and above figures for the period between January and March this year, i.e. the first quarter.

It is the first positive growth rate recorded since the third quarter of 2007, confirmed the Institute.

The prices of new homes slowed its decline to 1.7 percent in the second quarter of the year after tumbling 4.2 percent in January, February and March. There was no growth or downturn in the second hand housing market between the first and second quarters of the year.

The greatest slide in housing prices was registered in the second quarter of 2009 when the downturn reached -7.7 percent but since that time, the market decline has been gentler.

The Housing Price Index does not include government subsidised housing, nor variables such as the price per square metre of constructed property, or the number of buying and selling transactions completed – figures which are provided by the Ministry for Housing.

via Majorca Daily Bulletin

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