Price of used homes in Mallorca continues to rise

Palma - fourth most expensive city in Spain.

Andrew EdePalma02/07/2022 08:14

According to the latest price report from the property website Idealista, the price of used homes in the Balearics increased by 2.7% in the second quarter of 2022. The average price was 3,459 euros per square metre.

Francisco Iñareta of Idealista says that the challenge facing the real estate market in the Balearics at the moment is the lack of available housing. Strong demand over the past year has drained the used market, while permissions for new builds are progressing very slowly because of administrative bureaucracy.

Over the second part of the year, it is anticipated that the market will slow down because of a decline in purchasing power. This decline and an increase in mortgage rates, Iñareta says, will be the main factors in this slowdown.

Of Spain's major cities, Idealista points to San Sebastián continuing to be the most expensive city for used homes - 5,082 euros per square metre. Palma, at 3,292, is fourth after Barcelona and Madrid.