Very limited supply but high demand. | Archive

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According to a report from the Sociedad de Tasación (valuation), the people of the Balearics have far greater difficulty in buying a home that in anywhere else in Spain.

The report 'Evolution of accessibility to housing in the Balearic Islands over the last decade' indicates that this accessibility has decreased at a much faster rate than in the rest of Spain - it has been reduced by almost a half.

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"While in Spain as a whole the effort index has decreased between 2023 and 2024, in the Balearic Islands the gap has continued to increase." The effort index in the Balearics is the highest in Spain and equates to 19.9 years of full salary to buy a house. This is more than double that of the Madrid region, which has the second highest effort - 9.3 years. "A citizen of the Balearics would take almost four times longer to acquire a home with a full salary than a citizen of Murcia (5 years)."

Marc Pérez-Ribas, the representative of the Sociedad de Tasación in the Balearics, says that this is mainly due to the fact that there is very limited supply but high demand for properties. And in respect of demand, there is that of foreigner buyers who view the islands as a very attractive region for second homes or investments.

The average price per square metre in the Balearics, the report adds, increased more than elsewhere in the country last year. In December 2023 it was 2,570 euros. The previous December it had been 2,421 euros. The Spanish average at the end of 2023 was 1,852 euros.