Price of used homes in Mallorca continues to rise

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.