Rise in cost of new housing in Palma

The price of new housing in Majorca rose by 18.1 per cent last year as house prices shot up all along Spain's coast. During the period December 2000 and December 2001, the sharpest rise was in Malaga where the average cost per square metre of new housing rose by 18.3 per cent. A square metre in Palma rose by 18.1 per cent and in Ciutadella, the cost of new housing rose by 17.3 per cent. According to the Sociedad de Tasación, (Society for Valuation), a square metre of new housing will cost the most in Barcelona, 2.284 euros (380.000 pesetas) followed by 2.265 euros (376.000 pesetas) in San Sebastian. But the biggest increases have been in Marbella where the price per square metres rose from 983 euros to 1.164 euros and in Palma where the cost of a square metre of new housing last year rose from 773 euros to 907. In Ciutadella, Minorca, the price increased from 773 euros to 907 euros. Prices have remained relatively static however in parts of Cataluña, such as Platja de Aro where prices rose by just 3.3 per cent.