Property prices in the Balearics rose by four per cent in the space of 12 months, according to official figures released yesterday. Across the country the figure stood at just under five per cent.
Coastal properties in the Balearics and the Canary Islands along with homes in the big cities like Barcelona and Madrid are those which are most in demand and prices continue to rise, according to the report.
The Balearics and the Canaries have enjoyed the greatest growth in property prices since Spain exited recession in 2014 with an increase over the four year period of almost 20 percent.
But the report does underline the fact that house prices are still below their pre-credit crunch prices with house prices in Spain almost 35 percent lower than they were in 2007. But the Balearics and the Canary Islands continue to outperform the rest of the country with an overall fall compared to 2007 of 22 percent.
The overall market picture for the Balearics is relatively good and developers and real estate agents say that the biggest problem at the moment is finding quality homes and developments. And the upbeat picture also applies to the rental market with prices continuing to rise despite the crackdown by the local authorities on the so-called illegal holiday rental market.
Real estate agents contacted by the Bulletin said that buying a home on the island continues to be a fantastic investment and the market is in a bouyant situation with prices rising.