The Balearics are benefiting from targeted investment environment of recent years the Euribor has moved in each island's infrastructure. For example, more sharply downwards. The average Euribor interest money is to be pumped into rate for a twelve-month the expansion of public term is currently below transport in the coming year One can observe a 0 percent; the banks usually and an integrated fare system stable market development add a levy of between will be introduced for Palma in the Balearics. 0.5 and two percentage points city buses and Mallorca’s to this interest rate. This other bus routes and metro. isan extremely attractive situation for loan-financed property purchases (inclu- In order to ensure long-term positive development ding buyers with sufficient capital of their own) and of the property market in the Balearics, policy- it may exert an additional positive influence on the makers and the property sector should agree on a development of the market in the Balearics. Historical Development of Real Estate Prices on the Balearic Islands vs. Euribor 6 % 105% 5 % 100% 4 % 95% 3 % 90% 2 % 85% 1 % 80% 0 % 75% -1 % 70% joint approach to both new-build and development projects and to property modernization and structural Average Price-Index Euribor alterations. The regulation of building projects needs Historical Development of Real Estate Prices on the Balearic Islands vs. Euribor to be constantly revised so that the original natural environment and landscape, which are key features of the islands, are protected. At the same time, new property projects are essential to meet the demand from the growing population and the high standards of international buyers in all segments. A balanced political and economic solution will ensure that The Balearics retain their appeal long-term. Most of the properties that Engel & Völkers sell in The Balearics are bought without external financing. However, in recent years the banks have become increasingly interested in property financing. It is therefore noticeable that some customers finance the purchase price at least partly through the very attractive schemes being offered by banks. In Spain, most mortgages are linked to the Euribor and involve a variable interest rate. In the low-interest 20082009201020112012201320142015201620172018