Figures from Spain's ministry of housing and the urban agenda indicate that the highest average urban land prices in 2025 were in the Balearics. At around 400 euros per square metre, this was way above the national average of 173 euros and some way clear of Madrid with the second highest average of 348 euros.
In general, Spain's urban land prices were up two per cent in 2025 and at their highest since 2012. Current records for these prices started in 2004, since when the highest national average was 278 euros per square metre in 2007 at the height of the real estate bubble.
The financial crisis led to consistent falls in price. The average reached a low of 146 euros in 2015 before rising and then going down to 136 euros in the first quarter of 2021; this was an impact of the pandemic.
The lack of available land is one of the difficulties faced in developing new housing; the problem is particularly acute in the Balearics. There are many voices in the real estate sector who are calling for the rezoning of some commercial land to residential use.
The blocking of the Land Law reform in Congress is another obstacle, the real estate sector urging reform that will provide urban developments with more legal certainty and agility in combating the housing deficit in the Balearics and various other parts of Spain.