Palma is the tourist city in southern Europe with the highest housing and rental prices, according to a study on price trends in the main markets of southern Europe carried out by Idealista. The report, published on Wednesday, points out that the Balearic capital has reached 4,907 euros per square metre (euros/m2), a new record for the city and the highest price of the cities analysed, following an 18.4% year-on-year increase.
In the rental market, Palma also leads the way among tourist destinations in southern Europe (Portugal, Spain and Italy), with €18.3 per square metre per month, reaching its highest level in months with a year-on-year increase of 9.7%. The report for June shows that Spain is at record highs in both markets, while Portugal is the most expensive with more moderate increases. Meanwhile, in Italy, housing for sale remains far from the record set more than a decade ago, but with rents reaching record highs, ahead of Spain.
Portugal has the highest average price for homes for sale at €2,898 per square metre, ahead of Spain (€2,438 per square metre) and Italy (€1,828 per square metre). However, in terms of annual increases recorded in June, Spain leads the ranking with a year-on-year increase of 14%, above Portugal’s 8%, lower than in previous months, and only 1.5% in Italy.
As for the major capitals of southern Europe, Madrid has experienced an annual increase of 25% in house prices, reaching 5,642 euros/m2, a record high in idealista’s historical series, and is increasingly closing in on Lisbon (5,769 euros/m2), which is also reaching record highs, although it has barely moved, up just 2.3%. Both continue to be the most expensive cities in the three countries.
And, Calvia is the coastal municipality with the most expensive rent in Spain, according to Fotocasa, at 23.5 euros per square metre per month, according to Fotocasa. This is according to the real estate portal’s index for June, published on Wednesday, which places Palma in tenth place, with an average price of 18.1 euros per square metre per month.