Flats with terraces in the Balearic Islands, an increasingly expensive luxury

The passage of the coronavirus through our lives has dented the way we conceive the space we inhabit. The pandemic has opened our eyes to the outdoors, creating an imperative need to connect our home with the open air. Terrace enclosures have taken a step backwards. There is no longer any interest in gaining useful metres from the inside. In fact, homes with few windows through which natural light barely filters in seem condemned to renting, and always temporarily, because these tenants will be looking to be owners too, and not exactly of an interior flat. The movement led by the buyer has consolidated this search for more versatile, more spacious, more sustainable and more open-plan homes.

Exterior rooms have become a powerful magnet for potential buyers in the real estate market, a booming trend since 2020. This was reflected in a study carried out by the real estate portal pisos.com, indicating that throughout that year the most sought-after property was a flat of around 95 m², 3 bedrooms, located in the metropolitan area of a large city, for a price of around 280,000 euros and, of course, with a terrace.

When we take this predilection to a market such as the Balearic Islands, what is desirable in a peninsular capital is essential here. The proximity to the sea imposes its dominance, and the demand is clear that they want to go out on a terrace or in a garden and feel the Mediterranean breeze. The big obstacle is the limited supply available in the Balearics. Its orography imposes natural barriers that do not allow the production levels of new construction to respond to the pressure, not only from buyers but also from tenants. This is why prices are always high and make this region the one that requires the greatest economic effort in terms of the number of years required to acquire a property.

In addition, the increase in the price of new construction is being passed on to second-hand properties. According to the latest sales price report from pisos.com, the average price of a second-hand property in the Balearic Islands was 3,376 euros per square metre in May 2022. Buying a property in the Balearic Islands means buying in the most expensive capital in Spain. For its part, in Palma de Mallorca the average price per unit of surface area rises to 3,523 euros, placing the Balearic capital in fourth place among the most expensive Spanish capitals. These prices would rise by up to 30% if the flat in question has a terrace.

Living in privileged surroundings such as the islands of Mallorca, Ibiza and Formentera requires a considerable financial effort, and the closer you are to the sea, the higher the selling price. On the other hand, the purchase of property for investment has soared in the Balearics, which puts more obstacles in the way of residents. You only have to look at the ranking of the most expensive municipalities in Spain to see this. The top five is made up of towns located in the Balearic Islands, four in Ibiza and one in Mallorca: Sant Josep de sa Talaia (5,604 €/m²), Ibiza (5,468 €/m²), Santa Eulàlia des Riu (5,449 €/m²), Calvià (4,968 €/m²) and Sant Antoni de Portmany (4,633 €/m²). In all of these enclaves, proximity to the coast is a luxury that is paid for and an exterior exit is an essential requirement, even in the urbanisations furthest away from the seafront.