Balearics boom means gradual improvement

After suffering badly in the economic crisis, the Balearic islands of Mallorca and Ibiza are experiencing something of a comeback, according to the 2015 review released recently by Knight Frank Research.

In Ibiza, luxury homes in particular are seeing a resurge in sales, with prices rising 5% between December 2013 and December 2014 while, in Mallorca, although prices suffered an overall 2% decrease, certain residential areas of the island, such as Andratx and Deia, remained firm, with some "starting to record small increases".

According to data released by Knight Frank Research and the Spanish Ministry of Development, the Balearics kept construction supply to a minimum in the years running up to the financial crisis, unlike the rest of Spain.

In 2007, new residential construction across Spain reached 532,117 - but just 13,475 such builds began in the Balearics.

Now that the country is starting to see light at the end of the tunnel, sales on the mainland have again picked up.

In the first quarter of 2015, the average price per square metre in Spain stood at €1,264.50 (about £75.76 per square foot) while that of properties in the Balearic Islands was €1,505.10 (around £90.27 per square foot).

It's not just residential matters that are improving in the islands either as the Balearics - like the rest of Spain - have seen a boom year in the tourism sector. Figures show that tourism rose by 8% last year for Mallorca and 12% for Ibiza.

According to Knight Frank's, sources at its website viewings of online properties increased 31% in Mallorca and 11% in Ibiza,