2007 has proved to be a good year for Spanish tourism, and with Majorca doing particularly well, the sister island of Menorca is doing her best not to be overshadowed.
With official figures some way off, the general feeling in the hotels and holidays trade is that, like Majorca, an increase in the number of visitors compared to 2006 is likely.
But privately run companies often have a quicker gauge on market trends than government bodies, and easyJet, one of Europe’s best known airlines, has begun a new route to Menorca from the island’s important UK market. The new route flies from Newcastle in the north-east of England to Menorca’s capital Mahon, and some 5000 holiday makers are anticipated to be using the service during this season. The Newcastle service to Menorca is in addition to the airline’s existing flights in the UK to the island from London’s Gatwick Airport, Liverpool and Bristol.
In a further boost for Menorca, this time from the financial services sector, one of Britain’s best known banks and mortgage provider is to open three new offices on the Spanish islands of the Canaries plus Menorca to meet demand for Britons looking to buy a home in Spain.
The decision by the Halifax was taken from data showing a trend towards Britons buying homes overseas, with Spain the most popular choice.
Part of the decision was to open in Menorca, the quietest of the three Balearic Islands. Commenting on the move a local travel guide commented:
‘While Majorca and Ibiza are possibly better known than Menorca, it’s perhaps not so surprising that the bank has decided to open an office on the island. The typical buyer for property in Menorca is normally older than that for Majorca and Ibiza, which could mean they are hoping to service their investments and pensions along with a normal account – especially for those moving full time to Menorca.’
Commenting on the new bank branch in Menorca, the bank said that the opening of branches away from mainland Spain is an important step in the development of their branch network, and that they will continue to target the Spanish islands in addition to their Spanish mainland business.
Once bought, Menorca villas are often let out to holidaymakers, with the season generally running from May to end September.
The three Balearic Islands of Menorca, Majorca and Ibiza might be close to each other, but they are all different in character and the type of tourist they typically attract.
A surprise is that the amount of time spent on Ibiza by each tourist is longer than on Menorca and Majorca – destroying the myth that Ibiza is primarily for long weekends or short trips for a couple of nights in the club.
Recent findings by the Balearics Tourist Authority show that after Ibiza, Menorca visitors stay on average for 11 days, with Majorca just behind. And the same pattern emerges for spending per day, with Ibiza top, Majorca second, and Menorca last.
The amount spent by Ibiza tourists averaged 94 Euros a day – a huge contribution to the island’s economy, looked on enviously by Majorca and Menorca. But with new banks and flights Menorca might be starting to catch her sisters up.
November 14, 2009
Menorca Welcomes New 2007 Brit Tourists
November 11, 2009
Holiday Home Owners In Spain Could Do Best In the Recession
When the economy is good and people are taking two or three holidays a year, letting out an overseas property and getting good occupancy levels isn’t that difficult.
And with low interest rates, the rentals will cover the mortgage and often leave enough for a profit, and at the end of the mortgage the property is owned outright by the buyer, leaving him or her with a valuable asset good for a pension, or for a retirement home in the sun. Everyone involved, the owner, the bank and the people who rented for a holiday are happy.
But in times of economic troubles the picture isn’t so happy, and it’s at these times that potential buyers should really way up if the area they are considering buying in is a good investment.
The number of people renting villas and apartments abroad drops, the mortgage payments aren’t covered, and if the owner hasn’t got deep enough pockets to pay the shortfall between the rental income and the mortgage the home is repossessed.
But even in times of economic downturns this can lead to a new generation of overseas property owners picking up properties on the cheap, ready to rent out when times get better, and perhaps sale at the top of the next economic cycle.
So where is a good place for new overseas property buyers to look for? The answer is where the holiday markets are still strong despite the recession, where rental incomes might not dip as much as in other areas.
One UK based villa holiday specialist company has analysed which areas produced best booking returns for the 2007 villa holidays season, and Spain came out top. Within Spain it’s important to know which regions – and even narrower – which areas are performing best.
The regions of Spain showing good villa holidays rental potential include the three Balearic islands of Menorca, Ibiza and Majorca. The Canary Islands of Tenerife, Gran Canaria and Lanzarote were also popular last year and expected to be so again in 2008.
On the Spanish mainland the Costa Blanca was the most popular region, the Costa Blanca being made up of areas like Torrevieja, the Jalon Valley and Denia.
Once in a region where holiday villas are for sale look for something that has general appeal but also appeals to a particular market – a golf course is a good example. Menorca is a prime example of where it could make sense to buy close to a golf course.
The island only has one golf course, Son Parc, and if an overseas property buyer was to invest in an apartment or villa close to Son Parc the occupancy rate could be higher than other parts of the island, and the rental prices could be higher than those areas further away from the golf.
Menorca is the second largest of Spain’s three Balearic Islands. The other two islands are Majorca and Ibiza, Majorca holiday villas could also benefit during any recession as it is becoming increasingly popular and taking market share away from other holiday rental destinations.
Daytime summer temperatures hover around 27C in Menorca. Lovely peaceful days are on the menu on this island, a pace that attracts holiday makers in their 50’s and 60’s – who often have the spending power to rent a villa for a week or two, helping the owner with mortgage and other costs of maintaining an overseas property.
Overall the message is clear – in times of an economic downturn be careful where you buy a holiday home if you need to take a mortgage out to finance it. Do some research – and don’t accept estate agents high occupancy levels at face value – the estate agent is after a sale and acting for the seller, not you – do your own research locally first before committing to a sale – and use a lawyer to complete the sale to try and make sure there are no hidden problems.
November 7, 2009
Ibiza Welcomes New 2007 Flights
Weekend clubbers from around Europe, and especially from the UK and Germany, descend upon Ibiza in the summer months for a week – and often two – of non stop partying.
Ibiza runs second only to the UK’s main cities of London, Manchester and Liverpool in terms of popularity for clubbers, and some of the Ibiza clubs are as well known as any in the UK.
Demand for flights to Ibiza has been high enough in recent years for a low cost airline to start two new services from the UK to Ibiza, which should see the number of tourists on the island rise this year.
The two new routes are from Edinburgh in Scotland twice weekly, and London’s Luton Airport with both routes offering a daily service.
Announcing the new routes, a spokesman for the airline said that the famous Ibiza club season gets going at the end of June, and is still the best place to party in Europe. For the quiet life, head inland to the north coast of the island, where you’ll find some of Spain’s most beautiful landscape rolling into the Mediterranean.
Talking about Ibiza’s neighbouring island and equally well known holiday destination Majorca, where they have been offering a low cost service for some years, the airline said of Majorca’s capital, Palma, that it is the elegant and cosmopolitan capital of Majorca, the largest of the Balearic Islands, and is known for its beaches, climate, cultural and traditional influences. The warm climate of Palma makes it a popular destination, with something for everyone.
As well as Majorca and Ibiza, the airline also offers a service to the third Balearic Island, Menorca.
‘Of the three Balearic Islands, Menorca is known as the quiet one, the type of island where you take your family on holiday if there aren’t any mid to late teens who need entertaining, which would be more suited to Majorca. Ibiza is well known in Europe as a clubbing destination.’ Say one travel guide for Menorca and Majorca.
Menorca villas are often let out to holidaymakers, with the season generally running from May to end September.
As part of the Balearic Islands, Mallorca has welcomed many visitors back to live full time on the island. Menorca property has proved popular too, for those looking for a gentler pace of life than big sister Mallorca.
Property prices in Mallorca are similar to Menorca property, with a range of apartments and villas in both rural and town locations, and with twenty golf courses plenty of golf course developments too on Mallorca.
Menorca has just the one golf course, recently extended to eighteen holes, and is located in Son Park, which has a choice of hotels, apartments and villas for holiday makers.
The three Balearic Islands of Menorca, Majorca and Ibiza might be close to each other, but they are all different in character and the type of tourist they typically attract.
A surprise is that the amount of time spent on Ibiza by each tourist is longer than on Menorca and Majorca – destroying the myth that Ibiza is primarily for long weekends or short trips for a couple of nights in the club.
The findings by the Balearics Tourist Authority show that after Ibiza, Menorca visitors stay on average for 11 days, with Majorca just behind. And the same pattern emerges for spending per day, with Ibiza top, Majorca second, and Majorca last.
The amount spent by Ibiza tourists averaged 94 Euros a day – a huge contribution to the island’s economy, which could be furthered with the new routes from London and Edinburgh.
November 1, 2009
British Banks Open For Spanish Property
One of Britain’s best known banks and mortgage providers is to open three new offices on the Spanish islands of the Canaries plus the Balearic island of Menorca to meet demand for Britons looking to buy a home in Spain.
The decision by the Halifax was taken from data showing a trend towards Britons buying homes overseas, with Spain the most popular choice.
Part of the expansion decision was to open in Menorca, the quietest of the three Balearic Islands. Commenting on the move a local travel guide commented:
‘While Majorca and Ibiza are possibly better known than Menorca, it’s perhaps not so surprising that the bank has decided to open an office on the island. The typical buyer for property in Menorca is often older than that for Majorca and Ibiza, which could mean they are hoping to service their investments and pensions along with a normal account – especially for those moving full time to Menorca.’
Commenting on the new bank branch in Menorca, the company said that the opening of branches away from mainland Spain is an important step in the development of their branch network, and that they will continue to target the Spanish islands in addition to their Spanish mainland business.
Once bought, Menorca villas are often let out to holidaymakers, with the season generally running from May to end September.
As one of the Balearic Islands Menorca is situated close to better known Majorca, which like Menorca has welcomed many visitors back to live full time on the island. Menorca property has proved popular too, for those looking for a gentler pace of life than big sister Majorca.
Property prices in Majorca are similar to Menorca property, with a range of apartments and villas in both rural and town locations, and with twenty golf courses plenty of golf course developments too.
Menorca has just the one golf course, recently extended to eighteen holes, and is located in Son Park, which has a choice of hotels, apartments and villas for holiday makers.
The cost of flying to Menorca and Majorca has come down in recent years from most European countries due to low cost airlines, especially in the island’s core tourist areas of the United Kingdom and Germany, and last year easyJet started direct flights from London’s Gatwick Airport to Menorca, having served Majorca for some years already.
The third island in the Balearics is Ibiza, which in turn attracts a different age group and property buyer compared to Menorca and Majorca.
Clubbers from around Europe, and especially from the UK, descend upon Ibiza in the summer months for a week – and often two – of non stop partying.
Ibiza runs second only to the UK’s main cities of London, Manchester and Liverpool in terms of popularity for clubbers, and some of the Ibiza clubs are as well known as any in the UK, with some clubbers visiting frequently enough to consider buying an apartment on the island.
Demand for flights to Ibiza has been high enough in recent years for a low cost airline to start two new services from the UK to Ibiza, which should see the number of tourists on the island rise this year.
The two new routes are from Edinburgh in Scotland twice weekly, and London’s Luton Airport with both routes offering a daily service. This will be an attraction for those considering buying a property on one of the Spanish islands, and this in time will again attract the British banks to open new offices to cater for those considering buying an apartment or villa.