The price of property in Calvia and Palma has reached a record level. Property website Idealista, using data from the Balearic Statistics Institute, shows that the price per square metre in both municipalities is above that of the final quarter of 2008 and of the final quarter of 2010 (when there was something of a recovery, despite the recession).
In the second quarter of 2018, the price per square metre in Calvia was 3,428 euros; in Palma it was 2,809. At the end of 2008 these prices had been 3,051 and 2,381. The lowest they dropped to was in the final quarter of 2014 - 2,364 and 1,805 respectively. Although a Balearic-wide figure for the second quarter is unavailable, in the first quarter the average was 2,208 euros.
The recovery in prices is largely attributed to the reactivation of the wealthier segment of the market and also to foreign-buyer interest. Data from the Balearic College of Architects indicate that this has led to a significant increase in building permission applications. For the Balearics as a whole, these were up by 74% during the first half of this year compared with January to June 2017. While stand-alone properties have been more in demand, there is now also a rise for apartments. Over the first half of the year, there were applications equating to 1,618 dwellings. This was up by 18% compared with applications in the first half of 2007 before recession became a factor.