House prices rise by 24 per cent in Palma

The price of housing in Palma has increased by 24 per cent over the past year with the average price of a square metre in the capital being 131'800 pesetas. A recent survey carried out on 10'400 apartments and properties in the capital has also established that prices have been pushed up sharply by the lack of new housing to meet demand. While there is a substantial amount of construction underway, most of the properties being built already have an occupant waiting to move in, hence the price of “old” housing is rocketing. However, it appears that Majorcan house buyers and consumers have become accustomed to high prices and can compete with British and German house hunters, something Majorcan house buyers could not do a year ago, according to the study carried out by Tasaciones Inmobiliarias. With regards to the new property market, prices have risen by 18 per cent over the past 12 months, with the average cost of a square metre being 173'600 pesetas. But, on average, the cost of housing, new or old in Palma, is still below the national average.