Access to housing is one of the main problems faced by much of the resident population in Mallorca.
Rising property prices is causing many people to look to other municipalities with cheaper properties. According to the Fotocasa Real Estate Index, the Mallorcan towns with the cheapest properties per square metre are Inca with an average of 2,020 euros per square metre; followed by Manacor, 2,182 euros; Felanitx, 2,547 euros; and Son Servera, 2,944 euros.
These figures are considerably cheaper than those of localities such as Andratx, where the average price per square metre is 6,672 euros; or Calvia, where it is 6,014 euros. In other words, to buy an 80 square metre flat in Andratx it costs and average of 533,760 euros, while in Inca one with the same dimensions can be picked up for 161,600 euros.
If the difference is significant between different municipalities in Mallorca, if you compare them with those on the mainland the result is staggering. According to the Fotocasa Real Estate Index, the cheapest towns in Spain are Carolina (Jaén), where the average price per square metre is 637 euros.
The second cheapest town is Villanueva del Arzobispo (Jaén), where the average price per square metre is 641 euros. It is followed by Mondéjar (Guadalajara), with 648 euros per square metre; Montijo (Badajoz), 651 euros; Calasparra (Murcia), 661 euros; Herencia (Ciudad Real), 668 euros; Canals (Valencia), 675 euros; Peñarroya-Pueblonuevo (Córdoba), 687 euros; Mancha Real (Jaén), 688 euros; Terradillos (Salamanca); 696 euros, and Torreperogil (Jaén) 696 euros.
Therefore, in Carolina you can buy an 80-metre house for 50,960 euros, while in Andratx it will cost 533,760 euros on average. Thus, in the town of Jaén you can buy more than ten houses for the price of one in Andratx. Furthermore, the price of new housing has rebounded in the Balearics by 5.7%, while in Spain as a whole it has grown by 4.3% year-on-year in the second quarter, reaching a record 2,930 euros per square metre, although this is the sixth consecutive quarter in which the pace of progress has slowed, according to the ‘Real Estate Sector Trends Report’ published today (Monday) by Sociedad de Tasación.
The report points out that the price of new housing registered a year-on-year growth of 6.4% in June 2023, while in the first half of the year it rose by 2.1% compared to the same period last year.
The director of Institutions and Key Accounts at Sociedad de Tasación, Consuelo Villanueva, explained that as far as the real estate sector is concerned, there is an “incipient recovery” in terms of real estate and mortgage activity, determined by interest rates for new home purchase transactions that are “slightly more competitive than a year ago”, following the recent official announcement by the European Central Bank (ECB) to begin the de-escalation of rates.
However, Villanueva pointed out that on the supply side there is a scenario determined by the shortage of new finished product, which is insufficient to meet current demand. In this context, he indicated that the seller is acquiring greater bargaining power over the buyer.
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