On Thursday, the Balearic Government's Housing Observatory gave its first presentation since being established. Among its findings was that 60 per cent or more of home buying in the Tramuntana Mountains is by foreigners.
In general, coastal areas of Mallorca and the other islands are the main target for foreign buyers. Inland parts of Mallorca, notably the Pla (Plain) region, account for the majority of transactions between Spanish nationals in Mallorca.
The highest prices, according to the Observatory, are in the Tramuntana. The region covers Andratx, Calvia and Pollensa, but the highest prices of all are in Deia, with an average of €8,900 per square metre.
On the Palma coast, also favoured by foreign buyers, prices are up to €10,000 per square metre. By contrast, they are around €1,600 per square metre away from the coast and central parts of the city.
Statistics so far compiled by the Observatory indicate that there are 618,908 dwellings in the Balearics. In Mallorca there are 313,257 flats and 166,259 houses.
The housing director general, José Ramón Reynés, said that obtaining more accurate data via the Observatory, independent of the statistics provided by certain property websites, will allow for a more precise understanding of the prices at which sales transactions are being finalised. These prices are "30 per cent lower than what buyers are asking". He believed that with the creation of the Observatory, "sellers will have a more realistic idea of what they can ask for their property, which could lead them to lower their expectations and, consequently, their prices".