City house hunters pushing prices up

Demand for used housing in Palma last year rose by just over six per cent and, on average, prices being offered by estate agents increased by nearly 21 per cent - one of the biggest rises in Spain. The combination of a lack of used housing in the capital and the ability by house hunters to pay have fuelled the 21 per cent increase in property value. But, used housing in Palma is still cheaper than new housing and according to Tecnocasa, the market trend will continue. On average, house hunters once prepared to offer 15'9 million, are now offering 18'4. But for a two bedroom flat, the offer will be around 10 million, 17'42 million for three bedroom, 22.56 million for a four bedroom property and 23'95 for a five bedroom home.