Mortgages in the Balearics are well above the national average. | Pere Bota - Archive

Data from the College of Registrars show that the value of mortgages in the Balearics in 2019 was the second highest in Spain after the Madrid region.

The average mortgage in Madrid was 196,504 euros, whereas in the Balearics it was 165,789 euros. The national figure was 127,107 euros. The lowest was in Extremadura - just under 78,000 euros. An average mortgage in the Balearics was therefore more than double that in Extremadura.

Despite the high value in the Balearics, the average was down almost five per cent compared with 2018. Nationally, there was a 2.2% increase. The report from the college appears to confirm a view that the price of homes in the Balearics has stabilised after some post-financial crisis years when it rose far more quickly than in other regions.

There is nothing to suggest that there is about to be a slump in prices akin to 2008. The current situation points to a plateauing of price, with the middle class in the Balearics unable to afford higher prices. But as average salaries are below the national figure, the size of mortgages is that much greater. In 2019, 45% of salaries went on mortgage repayments; the monthly average figure was 831 euros.