Inca properties. | Ultima Hora

Extortionate house prices in Palma and the effects of the Covid lockdown have prompted an increasing number of people to buy property in rural areas of the Island where homes are usually bigger and have a sizeable garden or terrace.

Association of Real Estate Developers Vice President, Tolo Mayol says Santa Maria is now considered to be part of Palma and properties in Campos that have been on the market for years are now being snapped up.

Estate Agent, Luis A. Cabezas Echegoyen agrees that more clients are choosing to move to Part Forana and says 90% of buyers are demanding properties with a terrace, garden or patio, which are about 60,000 euros more expensive.

In the last three years, property prices have increased by 30%-50% in Inca, Llucmajor and Campos. Homes in Inca that used to cost 150,000 euros are now selling for 220,000-240,000 euros.

"In Santa Maria, Binissalem and Consell, real estate has always been expensive," says Cabezas Echegoyen, who points out that construction regulations make it very difficult to build properties on rustic land.

Four years ago you could buy a country house for 150,000 euros, whereas now it would cost 250,000 euros.

Sales & Purchases

The Balearic Islands, the Canary Islands and the Valencian Community are the three Communities where the number of properties bought or sold decreased in the first quarter of 2021 compared to 2020, according to the INE and the Ibestat.

In the first quarter of this year 2,273 homes were bought or sold, compared to 2,720 the previous year, which is a decrease of 16.44%.

Tolo Mayol says the decrease is due to three main reasons: rising property prices; limited movement by foreigners because of the Covid restrictions and difficulties in obtaining a loan.