The Balearic residential market, which already showed signs of weakening demand in 2019, is expected to face a further slowdown in house sales this year due to the crisis caused by the Covid-19 pandemic, according to forecasts by CBRE.
According to the report “Keys to the residential market in Spain 2020“, demand for housing in the Balearic Islands registered an interannual decrease of 10% to 15,643 units last year. “If we compare that figure with the average reduction in the number of house sales across the country (-2.5%), then the local decline in the archipelago is significant. Moreover, it consolidates a downward trend in house sales in the Balearic market that began in 2017 and which sources at CBRE attribute mainly to a contraction in foreign demand”, says Tonia Vera, Regional Director of CBRE in Palma de Mallorca.
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