Reports about Mallorca's housing market and the prices of homes can at times perhaps appear to be somewhat contradictory. For example, in August the College of Notaries indicated that house prices in the Balearics had fallen by 6.2% in May and by 5.9% in June. However, this was set against sharp increases in previous months, such as 24% in February.
A new report from the Fotocasa property website shows that the value of second-hand 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/