Balearics house sales slump but foreign buying remains strong

Prices could start to fall later this year

Estate agent's window in Palma, Mallorca

Mallorca, one of the most expensive places in Spain for property. | Miquel À. Cañellas

Andrew EdePalma30/08/2023 07:54
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Second-quarter figures from Spain's College of Registrars indicate that there was a 7.5% fall in the sale of homes in the Balearics and a 12.4% fall over twelve months.

Prices meanwhile continued to rise. In the second quarter there was a six per cent increase in the average price to 3,214 euros per square metre, the second highest in Spain behind the Madrid region.

The drop in sales between April and June was especially pronounced for new homes - down 21.4%. The average price of these homes rose 28% to 3,345 euros per square metre.

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There is a view among analysts that prices will start to fall towards the end of this year.

While sales in general are down, the foreign market continues to be strong - 32% of all second-quarter sales were to foreign buyers, with German buyers heading the list.

A rise in the cost of mortgages is one reason for the fall in sales. As to prices, a contributory factor has been the increased cost of materials.

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