A new report from the Fotocasa property website shows that the value of pre-owned properties (and so excluding new builds) has appreciated by 19.2% over the past year. There has been an increase of 732 euros per square metre. In November, this was an average of 4,534 euros. A 90-square metre property would therefore cost 408,060 euros.
Fotocasa has analysed prices in eighteen municipalities in the Balearics. According to its figures, prices have risen by more than 10% in 13. The highest single increase was in Felanitx - 53% to 3,075 euros per square metre, 29% higher than the national average.
The second highest percentage increase - 41% - was in Santa Eulària des Riu in Ibiza. The price per square metre there is 8,476 euros, 256% more than the national figure. Pollensa ranks third with a rise of 25% and a price of 4,737 euros. Calvia is fourth - up 21% to 6,535 euros.
It is clear that there are great differences in prices. Ibiza has the three most expensive municipalities in the Balearics - Santa Eulària des Riu, Sant Joan de Labritja and Ibiza itself, where a 90-square metre property is 598,140 euros. Then comes Calvia.
Whatever the prices actually are, they are such that, as the College of Registrars reported a month or so ago, the sale of homes has been falling - 12% in the third quarter compared with the same quarter of 2023. This fall is partly attributed to the fact that prices are so high.
Fotocasa's director of studies, María Martos, says: "The increase in prices in the Balearics is so significant that affordability of housing is at risk. The imbalance between supply and demand in the Balearics is increasingly greater."
For Fotocasa's general November report (in Spanish), go to: https://blogprofesional.fotocasa.es/
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@ Just Togetpublished : Yes and it will be Interesting who the buyers are going to be. Over the last 20 years Felanitx has become heavily populated by arabs from north Africa, mainly Moroccans. No doubt partly because many houses in the town centre were unrenovated and cheap to rent. Examples of illegal multi occupation have regularly been recorded. The council started adding arabic to their public notices several years ago, a good indication of the change in demographic, a change which surely contributed in keeping prices lower. Now european estate agents have moved in and are buying/renovating to resell. Will the demographic swing back as the North Africans are priced out or will european buyers be reluctant to buy when the neighbours are culturally very different. A fascinating conundrum with significant consequences.
Where is the source? Could you link it? Thank you
And that is because Felanitx got cheaper by comparison so people started buying there so greed set in as usual.