Mallorca and Ibiza: Real Estate Market Remains Attractive

Mallorca and Ibiza: Real Estate Market Remains Attractive PR Newswire PALMA DE MALLORCA, Spain, November 1, 2012 PALMA DE MALLORCA, Spain, November 1, 2012 /PRNewswire/ -- Positive development in the Balearic Islands, despite financial crisis - tax incentives for the purchase and sale of real estate until the end of 2012 Rating agencies are devaluing Spain, the country is in the deepest financial crisis of its history. Yet while the real estate market on the mainland is in deep trouble, things are looking better on the Balearic Islands. In an interview, Kai Dost, managing director of the estate agent Dost & Co. (http://www.dost-co.co.uk/), and a 20-years connoisseur of the real estate market in the Balearic Islands, explains why that is and where the journey is heading. Why is the development of the property market in Mallorca and Ibiza so different to that on the mainland? Kai Dost: "Looking at the market for holiday homes, there are four reasons. Firstly, over 85% of these second homes are owned by foreigners, and for tax reasons they are rarely financed with loans. Secondly, the restrictive environmental policy means that building land is limited. Thirdly, the Balearic property market has a very diverse base: if the German market falters, the English one is there to fill the gap, and Scandinavians are playing an increasingly important role. Eastern Europeans are also discovering Mallorca and Ibiza for themselves. This stabilizes prices.