The Balearics are enjoying a booming start to 2015, as property investment surges.
Engel & VÃ¶lkers Mallorca, which has 16 offices across the island, reports that the total sales volume in 2014 rose from â¬202M in 2013 to â¬259M in 2014 - an increase of 28 per cent.
The trend for buyers to make decisions faster to buy continued as potential investors wanted to take advantage of the stable market, says the agency, and this sales movement helped to increase the average sales value from â¬750,000 to â¬1.2M.
The figures are echoed by Sotheby's International Realty, which also saw sales soar by 20 per cent in Mallorca.
Alejandra Vanoli, Managing Director of Mallorca Sotheby's International Realty, says: "2015 will bring stability and yet more confidence to buyers, particularly as our traditional source markets are also more secure with Germany posting record low unemployment and the fastest rate of economic growth in three years and UK recovery well on course. Since June 2014, the banks have also become more open to lending, albeit with strict criteria."
"We're headed for record sales figures in 2015," Vanoli adds. "Now is a great time to invest.
Hans Lenz, Managing Director, Engel & VÃ¶lkers South West, highlights the increasingly favourable conditions available on the island.
Indeed, this year the Spanish Government has introduced a series of beneficial tax breaks for foreign investors; the capital gains rate will be reduced from 21 per cent to 20 per cent this year and to 19 per cent in 2016. There's a substantial reduction in Inheritance Tax from 34 per cent to 1 per cent and 7 per cent for transactions to immediate family (spouse and children).
There has also been a notable shift by the Spanish Banks for foreign lenders and they are now offering mortgages with LTV up to 70% with fixed interest rates in the first year starting as low as 2.75 per cent.
German speaking buyers continue to dominate the market although the strengthening pound sterling against the Euro has brought in more British buyers. The Scandinavian market continues to develop and makes up approximately 20 per cent of the market for E&V on Mallorca.
On Ibiza, Sotheby's International Realty also saw sales multiplied four times in the past year.
Glynn Evans, Managing Director of Ibiza Sotheby's International Realty, explains: "As ever, both official and unofficial figures are tricky to come by in Ibiza, it likes to keep an air of mystery, but we can confirm that in 2014 we sold four times as many properties as 2013. Island-wide, we're aware of at least 25 villas sold at prices in excess of 1.5 million euros and there will be several more that haven't featured on our radar."
Lenz comments:"In Mallorca top end real estate has had another good year and a new segment of the luxury property market in the 5M Euro price range is developing in areas all over the island. Prior to 2007, a top luxury villa would have been priced at around the â¬2M mark. However, in today's market that price bracket has moved up to â¬5M. This recent trend, which started in the south west, is now becoming more commonplace."