The Mallorca property market is expected to undergo a "top-down recovery" in 2012, it has been suggested.
According to Sotheby's International Realty, the high-end homes for sale on the island have performed relatively well this year and this is expected to continue next year.
Stephen Dight, Managing director of the organization commented: "We expect a top-down recovery, that is to say continual improvement in the top-quality end of the market with a trickledown effect spreading to the lower priced property."
Mr. Dight was positive about the real estate sector in Mallorca overall, stating that its popularity with buyers from all over Europe, as well as the lack of available stock on the market are the reasons of the market resilience. Also, increased property sales and interest from potential buyers in Mallorca is helping to drive recovery in the country's beleaguered property market
Realty firm Taylor Wimpey de Espana outlined the reasons for the popularity of Mallorca as it did not suffer from the same problems relating to oversupply as the rest of the market, so the balance between supply and demand was in its favour and secondly, buyers claim that Mallorca is considered as a "superior" location to some mainland cities.
Javier Ballester, managing director of the company, said that Sales to foreign buyers have been driven by the price adjustments that the Spanish market has seen and Mallorca properties have seen reductions of up to 25 per cent. He also said that the company is looking at launching more developments to keep up with the current demand.
In related news, Spanish-Living.com website recently revealed that property prices in the Balearic Islands tend to hold up better than those on mainland Spain.