Foreign property boom gathering yet more pace

Despite calls for a limit on foreign property purchase in the Balearics being made by some members of the local government, the boom continues and some local estate agents are finding it difficult to quench the British and German thirst for Balearic properties. Demand for properties at Kuhn & Partner in the first six months of this year rose a record 38 percent with transactions to the value of more than 60 million pounds being undertaken. Kuhn & Partner says that they received in the first part of this year more than 5'000 enquiries for Balearic homes. They say that the areas which are proving most popular are Puerto Andraitx, Son Vida, Santa Maria, Soller and Betlem. This will all make poor reading for local minister for Employment Eberhard Grosske who has called for a parliamentary commission to be established to look at ways to halt the “foreign invasion.” One highly disputed statement claimed that by 2002 there will be more than one million German-owned homes in the Balearics. The strength of the pound sterling, which once again has passed the 270 mark is also helping to fuel the boom with Pollensa, and Costa den Blanes being exceptionally popular. The Germans, according to a survey undertaken by Engel & Volkers are also discovering old Palma with Santa Catalina, the area around the Cathedral and La Lonja proving to be “star areas”. Average prices range from 40 million to 100 million pesetas. There have also been cases of homes being sold for up to 800 million. Estate agents say that the building freeze and talk and much speculation over the tourist tax is not halting the boom.