The Balearic property market continues to break records in Spain, consolidating its position as the region with the highest prices in the country. Against this backdrop, the Mallorcan municipality of Sa Pobla emerges as a curious phenomenon: it is the most affordable option in the archipelago, with an average price of 1,917 euros per square metre, according to the latest report by Idealista for June 2025.
Although significantly lower than the regional average, this figure places the poblers in a paradoxical situation. Despite having the cheapest municipality in the entire Balearic community, it simultaneously holds the dubious honour of being the most expensive among all the municipalities that occupy the ‘cheapest’ position in their respective autonomous communities. This contrast reflects the extreme tension in the property market in the islands.
The study published by the real estate portal highlights the gap between Sa Pobla and the Balearic average, where the price per square metre reaches 4,996 euros, a difference of 62%. This disparity illustrates the profound territorial inequalities in access to housing that characterise the Spanish real estate landscape in 2025.
The contrast becomes even more dramatic when comparing the Balearic data with other Spanish regions. While in Sa Pobla it takes almost 1,700 euros per square metre to buy a home, in Almadén (Ciudad Real) the average price barely reaches 290 euros per square metre, making it the cheapest municipality in the whole country.
This price gap extends to other regions. In regions such as Castilla-La Mancha, Extremadura and Galicia, there are many municipalities where the price per square metre is below 500 euros, a reality that seems to belong to another real estate universe when compared to the Balearics, where the land available for urban development is much smaller. Experts point out that these differences reflect the different economic and social realities that coexist in Spain.
The phenomenon observed in the Balearics is not accidental. The combination of factors such as the geographical limitations of an island territory, constant tourist pressure, growing international demand for second homes and the scarcity of new building land has created a perfect storm in the Balearic property market over the last decade.
The implications of these high prices are profound for the local population. Balearic residents, especially young people and families with average incomes, face serious difficulties in accessing home ownership. Even in Sa Pobla, theoretically the most affordable option, prices are prohibitive for many inhabitants of the islands, forcing internal migration to more affordable municipalities or even an exodus to the mainland.
Various citizen groups have expressed their concern about this situation in recent months. Neighbourhood associations and platforms for the right to housing complain that the Balearic property market is completely disconnected from the reality of wages in the region, where the service sector, which dominates the island economy, does not generate enough income to cope with these prices.
Real estate analysts do not anticipate significant changes in the short term.
Pressure on the Balearic market continues to rise, fuelled by foreign investors with high purchasing power who find the Balearics an attractive destination for both residence and investment. This factor, combined with the limited capacity for new housing construction due to urban and environmental restrictions, is keeping upward pressure on prices.
In this context, municipalities such as Sa Pobla could experience further price increases in the coming quarters of 2025, further narrowing the gap with the most expensive municipalities in the Balearics. Industry experts predict that the upward trend could moderate slightly by the end of 2025, although no significant correction is expected. Idealista’s data ultimately reflects a complicated real estate landscape in the islands, where even the most affordable options are inaccessible when compared to the real estate reality in the rest of Spain.