The price of existing housing in the Balearics rose by 9.6% over the last year to €5,160 per square metre, according to the latest price report from idealista. This represents a quarterly increase of 1.4% and a historic record for existing housing in the Balearics. The largest increase was in Sa Pobla, with 37.9%. This was followed by increases in Colonia de Sant Pere (31.6%), Campanet (26.3%) and Alaior (24.4%). In contrast, Sencelles (-9.6%), Santa Maria del Camí (-9.2%) and Sant Llorenç des Cardassar (-2.9%) saw the largest declines among the markets analysed by idealista.
In Palma, prices rose by 14.5% to €5,086/m2, which is the highest price in the Balearic capital since idealista began recording data. Formentera has become the most exclusive market in the islands, with €8,977/m2, followed by Sant Joan de Labritja (€8,421/m2). The most affordable municipality analysed by idealista in the Balearics is Felanitx, where sellers are asking an average of €2,399/m2. It is followed by Lloseta (€2,422/m2) and Sa Pobla (€2,528/m2).
According to Francisco Iñareta, spokesperson for idealista, “There is a housing shortage and the figures are clear. After the 2008 crisis, we have not been able to recover our production capacity, so we are carrying a huge burden of housing underproduction. The Bank of Spain estimates this deficit at 700,000 homes, but the gap remains wide. Considering that almost twice as many households are created as new homes, the problem shows no signs of being solved.
"We need to see cranes back in the urban landscape of many Spanish cities. It is essential to put an end to the criminalisation of construction, populist noise and political blindness that prevents mechanisms, such as the Land Law, from being activated, which would accelerate the creation of new homes. And not just any type of housing will do; our society is not the same as it was 30 years ago. New homes must be adapted to new needs and made affordable. And for development, we must be aware of the shortage of skilled labour and the need for bold policies that attract and train all the workers the sector needs."
The price of existing housing in Spain rose by 16.2% year-on-year during the fourth quarter of the year, higher than the 15.3% recorded in September, and the highest since the bursting of the property bubble. This increase brings the price per square metre to €2,639. In terms of quarterly variation, prices have increased by 4.8% in the last three months. With this price, Spain has reached a new all-time high.
All autonomous communities have higher prices than a year ago, as is the case with capital cities.
In the city of Barcelona, prices have risen by 9.4% this year, bringing the price per square metre to €5,144. Looking at the quarterly data, prices in Barcelona have risen by 3.1% in the last three months to reach a new all-time high in the city. In Madrid, sellers’ expectations have risen by 17.5% in the last 12 months, bringing the price per square metre in the capital to €5,820. In the last quarter, the price has risen by 2.5% and is now the highest ever recorded in the city.