A huge proportion of all luxury property transactions have been concentrated in the Balearic Islands for many years. Here, house prices have been reduced the least since the crisis compared to other parts of the country.
The average price of a luxury villa is situated at around 1.7 million euro, which for many is way over their budget. And prices have gradually continued to increase in recent years.
Despite this, there are still a certain number of properties that estate agents and owners are unable to shift, and have remained on the market for much longer than hoped.
This is the case of Hollywood actor Michael Douglas, whose mansion in the beautiful mountainous inland town of Valdemossa on Mallorca has been up for sale since 2014.
The film star acquired the property, named S’Estaca, more than 25 years ago when he was still married to his first wife, Diandra Lucker.
After the couple split and divorced over a decade ago, they decided to keep the villa and live in it six months of the year each.
In 2014, however, they agreed to put it up for sale, with a price tag of 50 million euro.
After almost three years with very little interest, Douglas has instructed Sotheby’s, who are in charge of selling the property, to reduce the price by 20% to 40 million euro.
The property is a huge 70-hectare complex consisting of seven independent units with five apartments and 10 bedrooms, a loft and two small bungalows.
It boasts its own vineyard and winery, a cinema, and some amazing views of the sea.
Although the owners have reduced the sale price by a substantial amount, they will still make millions in profit if the property does manage to sell at the new price.
The couple purchased the mansion for the equivalent of just under four million euro in 1989, although they then invested a further seven million in reforming it and redecorating.