In absence of recent data on the end of the year, we can say that 2015 has been a major shock to the real estate market at national and insular level. In data Housing Price Index (HPI) prepared by the National Statistics Institute (INE) with data from notaries have experienced six quarters of annual increases after six years of declines.

In addition, the third quarter of this year has involved the highest average rise in house, 4.5% higher from the latter, 5.7% in late 2007. With an analysis by regions, it can be said that the houses being revalued over the previous year at higher rates 5% highlighting the case of the Balearic Islands, with annual increases of 8.4% and, becoming one of the three richest regions of the country, where economic growth is evolving positively. Regarding the statistics of purchases of property, and based on the figures of the Ministry of Development of Spain from the deeds notarized, we note that during the third quarter was 93,528 homes sold in Spain, the majority (89.1%) of all apartments sold corresponded to second-hand properties, 17.9% of homes were purchased by foreigners.

The statistical distinguishes between residents and nonresidents outsiders, making the first most of the transactions. Regarding the Balearic Islands, The Tax Agency Balearic raised in late November data, 80 million euros for sales transactions made by foreign investors. In the first eleven months of this year there have been 3,051 transactions worth 921 million euros. The average value of real estate has risen from 325,000 euros in 2014 to 400,000 euros, although depending on the area and the investor market, especially if Swedish, Swiss or British, purchases reach three to four million euros. In terms of areas, highlight the Palma Old Town , the Bay of Palma to Puerto de Andratx and the properties of North Mallorca .

Regarding 2016, it is expected to increase the number of new construction this year has grown by around 20% the number of visas and construction is anticipated that this trend will continue in 2016. The increased access to credit has allowed for 2016 we estimate a rise of Spanish still preferring home purchases, although it is possible that in the future the trend may change slightly to align with European trends. The interest of foreign audiences for the holiday homes has been particularly noticeable during the crisis years, it still is today and is expected to remain so. 65% of the properties of second homes sold in Spain are foreign buyer.

At Vogue Properties we provide you with an excellent service unmatched by other Mallorca Real Estate professionals. We have more than 15 years experience selling and renting properties in  Mallorca being Property Specialists in the North of Mallorca, Port Andratx and West Mallorca.