According to figures from the national ministry of development that are derived from the Fotocasa website, the average cost of buying a home in the Balearics is 2,561 euros per square metre. This is 40% more than five years ago.
In the case of renting accommodation, the cost is 9.85 euros per square metre. The rise is much the same: 43% more than in 2014. This said, the cost has gone down slightly. A year ago the average was 10.22 euros.
Palma is its own particular case. The average cost to rent is 10.90 euros; a year ago it was 10.34. It is now at an all-time high, even if increases have moderated somewhat. Over the past five years, there has been an accumulated rise in the cost to rent of 55%.
Despite the Balearic government's holiday rentals legislation, which it had hoped would ease difficulties of access to rented accommodation and make it more affordable, prices have continued to rise. This is on account of the sheer demand for residential letting. In Palma, this demand now extends beyond the centre.
As for the cost to purchase in Palma, this is now an average of 2,804 euros per square metre. Last year it was 2,599 euros and is above what it had been at the height of the property boom in 2007 before the crash - 2,762 euros.
