Prices in the Balearics held steady in May.

01-06-2020M. Joy - Archive

According to property website Idealista, the price of secondhand homes in the Balearics rose 0.5% in May to 3,105 euros per square metre.

This was the highest price in Spain, followed by Madrid (2,783 euros) and the Basque Country (2,597 euros). At the other end of the scale, Castile-La Mancha (861 euros) had the lowest price.

Nationally, the price went down 1.3% to 1,730 euros. Idealista anticipates there being further price decreases of up to two digits in some areas this year. In May, all regions registered a decrease with the exception of the Balearics, Valencia (up 0.4%) and Extremadura (0.2%). The greatest decrease was minus 2.1% in Navarre.

Treated as a province, the Balearics was still the most expensive in May, with Gipuzkoa (Basque Country) second with a price of 2,978 euros per square metre. Cuenca (Castile-La Mancha) was the cheapest province with 762 euros.

The head of studies at Idealista, Fernando Encinar, says that during the state of alarm the stock of used homes has grown exponentially, with houses mainly having become available because of divorce, separation and inheritance and also because owners have had an urgent for liquidity.

The supply, he believes, will continue to increase over the coming months, while demand will be dragged back by a lack of employment and savings. Two-digit price decreases can be anticipated in areas where there is a significant increase in supply and a notable fall in demand. He expects there to be a rapid recovery and return to pre-Covid crisis prices in 2021.

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