The average sale price of housing in the Balearics rose by 62.5% between 2020 and 2025, one of the highest increases in the country during this period, according to data collected in a study by the real estate portal pisos.com. While according to the UK House Price Index as of November 2025, the average house price in the UK is £271,188, and the index stands at 103.9. Property prices have risen by 0.3% compared to the previous month, and risen by 2.5% compared to the previous year.
In the Balearics the average price of a 90-square-metre property has risen from €283,825 in 2020 to €461,269 (around £402,140) last year, a difference that is above the national average increase of 32.8%. By province, the Balearics are among those that have experienced the highest increases in the country, only behind Santa Cruz de Tenerife, while by capital city, Palma leads the national ranking, with an increase of 70.2% in the last five years, to an average of £477,754.
In addition, the pisos.com report highlights a growing territorial gap, with strong price tensions in communities such as the Balearics compared to other areas of the mainland interior where values are barely growing or even declining, an imbalance that, according to the analysis, conditions access to housing and reinforces residential inequalities.
What is more, purchasing a property in Palma and renting it out would give the buyer a gross return of 4.38% at the end of 2025, making it the second city in Spain with the lowest percentage. These are some of the figures taken from the statistics compiled by the property portal pisos.com on this speculative activity, which indicate that Palma is only ahead of San Sebastián with a return of 3.87%.
Meanwhile, the gross rental yield in Spain in December 2025 was 7.02%. Considering that the average purchase price of a 90 m² residence in Spain was just over €218,000 (€2,427/m²) and that the average monthly rent was €1,278, the owner obtained a total of €15,346 gross per annum, which yielded a gross return per property of 7.02%. This represents an increase of more than one point compared to the same period in 2024 (5.89%), while the increase compared to last November (6.98%) is ‘not as pronounced’.
The director of Studies at pisos.com, Ferran Font, has pointed out that residential rentals in Spain have become ‘one of the most active and pressured areas within the property market. The sustained increase in rents, especially in large cities, is due to a combination of factors such as the structural insufficiency of supply, the evolution of demand preferences and growing competition from other alternative uses of the residential stock,’ he said.