The price of urban land in the Balearics continues to increase. | Archive

The price of urban land in the Balearics rose by 12.3% during the second quarter of the year. Figures from the national ministry of development show that this increase was almost seven as much as the national average of 1.8%. The average price for Spain was 166.40 euros per square metre. In the Balearics it was 274.20 euros.

The increase, in percentage terms, was the sixth highest - Cantabria topped the list with a 56.3% rise - but the price in the Balearics was second only to the Madrid region. The price there was 300 euros, and the increase matched the national average of 1.8%.

Factors contributing to the Balearic price are well known. They include foreign buyers with high purchasing power and the lack of new developments and are particularly relevant to Palma, Ibiza Town and the principal tourist resort areas.

Compared with the first quarter of 2017, there was a three per cent increase in the Balearics, while in Spain as a whole there was a reduction of 0.7%. In municipalities with more than 50,000 residents the average price per square metre (the national figure) was 326.30 euros. The Balearics with 321.50 euros was therefore slightly below this. In the Balearics, Palma is the only municipality where the number of residents is definitely greater than 50,000 (and by some considerable distance). The population for Ibiza Town is currently given as being slightly under 50,000. Calvia's population has dipped below the 50,000 mark.

According to the Club Notegés association of independent real-estate agents, the price of housing has increased more in the Balearics this year than any other region. Between January and August there was a rise of 13.74%. The national average was 2.29%.