Majorca formula 1 bid to boost house prices

A bid from the popular Spanish holiday destination of Majorca to host annual Formula 1 races could see a further boost in tourism and real estate prices for the island.

Plans are currently underway to create a new world-class racing track in the area of Llucmajor, close to the capital city of Palma. If the bid is successful, Majorca could host an F1 Grand Prix as early as September 2012, and with it an influx of new tourists.

"If we are lucky enough to start hosting Formula One races, it will only serve to strengthen property prices as the demand to visit increases", said Ignacio Osle of property development firm Taylor Wimpey. Osle remained optimistic about the future of the local real estate market despite flagging prices in Spain as a whole.

"Mallorca's property market has not been affected by the world recession like some regions in mainland Spain", he said. "We have had to review prices but due to the lack of stock available compared to the demand for homes on the Island the market has remained really quite buoyant."