The price of the houses in Ibiza will grow a five percent in the next years
The price of the house will grow around the 5 percent in the next years in Ibiza and the rest of the Balears, which will reabsord the "overvaluation" that has taken place in the sector, according to a study of the Balearic Association of Asesores Inmobiliarios (ABAI), who foretell a reduction in the number of new promotions. The spokeswoman of this organization, Josefina Fri'as, described today as "outragous" the ascent of the price of the house that has taken place in the last years and augured a "relaxation" of the cost of the apartments and the real estate activity.
In this respect, it discarted that a "recession of the real estate market" takes place and predicted a "stabilization" of the sector, that it considered that it will enter a phase of "maintained growth" of the 5 percent in Ibiza, although in Palma the increase of the price of the house will be superior and go up to around the 10 percent. Although the price of the new and used house in the Balearic capital has grown "in a alarming way" in the last years, the real estate "no longer sell so easy", since the cost of the apartments "does not show in the appraisals", affirmed during the presentation of the I Fair and Real estate Congress of Balears, that is celebrated this week in Palma.
In the last seven years the market of transaction of buildings in ibiza and the rest ofBalearic has experienced "a spectacular" increase, which has given foot to an important increase of the prices, that it has had annual ends superior to the 20 percent. Frias related this expansion of the sector in the archipelago to the increase of the acquisition of houses on the part of the European market, the slope of the types of interest and the limitation of the ground. In its opinion, this bullish tendency has ended at an overvaluation of the properties that goes up to around the 15 percent, percentage that will be cushioned in the next years.
However, the financial conditions will continue being favorable for the Balearic families, since although ascents of the types of interest will take place, these will be smooth and asumibles on the part of the domestic economies. The ABAI spokeswoman considered that the increase of the population that has registered Ibiza has duplicated the forecasts of population increase due to immigration. Nevertheless, the ground shortage has repelled the increase of the price of the house and has limited the activity of the constructors, many of which choose to extend their business to the peninsula before the impossibility of finding lots sufficient to undertake promotions of more than thousand houses. Frias stated that a progressive tendency to the expansion of the real estate market in the communicated municipalities affluent with Palma exists, due to the elevated price that the apartments have in the Balearic capital. With respect to the foreign market, he considered that the European citizens will continue buying in Balearic due to the "beauty" of the Islands and the services that offer, although will not find the prices "so favorable" than there was six years ago. In agreement with the report, the sector of the house represents more of the 9 percent of Producto Interior Bruto (PIB) of Balearic and uses the 11 percent of the workers of the Islands. The I Fair and Real estate Congress of Balears 2006, will be celebrated from the 23 to the 26 of this week in 2.000 square meters of the Spanish Town, where 41 exhibitors who represent promotional, real estate companies, financial insurance agents and organizations, among other sectors will occur to appointment.
Find more information and prices of accommodation in Ibiza Hotels.
In this respect, it discarted that a "recession of the real estate market" takes place and predicted a "stabilization" of the sector, that it considered that it will enter a phase of "maintained growth" of the 5 percent in Ibiza, although in Palma the increase of the price of the house will be superior and go up to around the 10 percent. Although the price of the new and used house in the Balearic capital has grown "in a alarming way" in the last years, the real estate "no longer sell so easy", since the cost of the apartments "does not show in the appraisals", affirmed during the presentation of the I Fair and Real estate Congress of Balears, that is celebrated this week in Palma.
In the last seven years the market of transaction of buildings in ibiza and the rest ofBalearic has experienced "a spectacular" increase, which has given foot to an important increase of the prices, that it has had annual ends superior to the 20 percent. Frias related this expansion of the sector in the archipelago to the increase of the acquisition of houses on the part of the European market, the slope of the types of interest and the limitation of the ground. In its opinion, this bullish tendency has ended at an overvaluation of the properties that goes up to around the 15 percent, percentage that will be cushioned in the next years.
However, the financial conditions will continue being favorable for the Balearic families, since although ascents of the types of interest will take place, these will be smooth and asumibles on the part of the domestic economies. The ABAI spokeswoman considered that the increase of the population that has registered Ibiza has duplicated the forecasts of population increase due to immigration. Nevertheless, the ground shortage has repelled the increase of the price of the house and has limited the activity of the constructors, many of which choose to extend their business to the peninsula before the impossibility of finding lots sufficient to undertake promotions of more than thousand houses. Frias stated that a progressive tendency to the expansion of the real estate market in the communicated municipalities affluent with Palma exists, due to the elevated price that the apartments have in the Balearic capital. With respect to the foreign market, he considered that the European citizens will continue buying in Balearic due to the "beauty" of the Islands and the services that offer, although will not find the prices "so favorable" than there was six years ago. In agreement with the report, the sector of the house represents more of the 9 percent of Producto Interior Bruto (PIB) of Balearic and uses the 11 percent of the workers of the Islands. The I Fair and Real estate Congress of Balears 2006, will be celebrated from the 23 to the 26 of this week in 2.000 square meters of the Spanish Town, where 41 exhibitors who represent promotional, real estate companies, financial insurance agents and organizations, among other sectors will occur to appointment.
Find more information and prices of accommodation in Ibiza Hotels.
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