The forecast for Spain's housing market in 2023 is for prices in tourist regions to continue to rise but at a more modest pace than in 2022. An exception will be Catalonia, where prices are predicted to fall.
In the Balearics, the president of the API association of real estate agents, Natalia Bueno, says that demand for purchase and for rent will remain significant, meaning that prices will not be coming down. But increases in price will not be notable; she expects them to be below inflation.
The director of studies at the property website Pisos.com, Ferran Font, notes that prices have started to come down in certain regions, e.g. Asturias, Cantabria and Extremadura. In the Balearics, he says that the price of real estate will continue to rise because of the islands' characteristics - high dependence on tourism and limited land.
Between October 2021 and September 2022, property sales totalled around 18,000. "It is a very attractive region for foreigners, either to buy a second residence or as an investment. Proof of this is that in the third quarter of this year, one in three houses were sold to foreign nationals. The Balearic market is one of the most stressed in the country."
Pisos.com calculates that there was a 10-15% increase in the price of housing in the Balearics during 2022. Font agrees that there will be a more moderate increase in price in 2023.