A shortage of supply of and a high demand for parking spaces in the Balearics leads the president of the API association of estate agents, José Miguel Artieda, to observe that "in half of Spain you can buy an apartment for the price of a parking space in Mallorca".
In some areas of Palma, such as Santa Catalina, the average price for a parking space is over €120,000. In the centre of the city, the price ranges between €70,000 and €100,000. Some ten years ago, Artieda notes, you could buy an apartment for these amounts. Not now, given that the price per square metre in the Balearics is €4,063, according to the latest data from the College of Notaries. An 80-square-metre apartment therefore costs an average of €325,040.
"In 27 Spanish provinces, the average price per square metre is below €1,500, making it possible to buy an 80-square-metre apartment for less than €120,000, roughly the price of a parking space in some areas of Palma." In Extremadura, where the average price per square metre is just €696, you could buy two apartments for the price of a Palma parking space.
Artieda explains that garage prices are so high because there is strong demand and little supply. "There is a lot of demand, especially in Palma, both for buying and renting." He says parking problems "are becoming increasingly urgent". There is also demand from companies that need to meet the parking needs of their employees.
"Buying a parking space is an interesting long-term investment, but in the short term it has a low return. Therefore, renting is always a good option, although you risk not finding one where you're looking or having the contract terminated at any time if it's not for residential use."