Five years ago there was an enormous stockpile of unsold and unrented properties in Palma. At the time I remember thinking that the old saying of putting your money into bricks and mortar was no longer appropriate. How wrong I was.
Now, there is a major shortage of rentals homes in Palma and property prices have gone through the roof thanks to demand from across the globe. If you own a home in the centre of Palma, I am told, you are sitting on a gold mine. The transformation of the property market in Palma is now almost complete. There are far more people looking to rent a home in Palma than there are homes available. Some estate agents, I am told, have a waiting list just to be able to find a decent rental property. Even some of the more unglamorous parts of Palma are starting to enjoy the benefits of the housing boom. The other day an estate agent joked that years ago gold was a bank solid investment, now it is a penthouse in the centre of Palma!
Our capital city was recently voted the best place to live in the world so it is not difficult to see why there is so much demand for so little property. In fact, the city council are thinking of introducing legislation which would seek to stem the flow of tourist reentals. It is quite amazing how Spain has recovered from the recession. Five years ago the future was not bright. Now Palma can look to the future with confidence and those who own property are laughing all the way to the bank.