Palma, Mallorca

Palma is the fourth most expensive provincial capital. | A. S.

Andrew EdePalma06/01/2023 11:03
TW
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TINSA is Spain's leading property valuation company. Approved by the Bank of Spain, the prices of properties, according to TINSA, are taken to be the most reliable source of information - more so than that which is frequently provided by property websites.

The TINSA report for 2022 indicates that prices in Palma rose on average by just 0.7%, the lowest increase among all provincial capitals in Spain. The implication of this is that prices appear to have peaked after years of steady increases. Whether this is temporary or marks a trend, it is too early to say. But indicators do point to an end to a period during which prices have shot up. In Palma, prices per square metre have risen by over 50% since the property market recovered after the financial crisis, during which they plummeted.

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TINSA notes that prices for the whole of the Balearics rose by an average of 5.4%. This was down on the 12.25% increase in 2021. But the suggestion is that prices are hitting a ceiling. The average in 2022 was below inflation, while the figure for the Balearics was below an 8.8% national average. Only the Canaries, with 3.8%, registered a lower increase.

Even so, prices remain high. The average price per square metre in Palma was 2,645 euros last year, the fourth highest among provincial capitals behind Madrid (3,583), Barcelona (3,591) and San Sebastián (4,074). At regional level, prices in the Balearics were the second highest in the country - 2,682 euros per square metre - behind Madrid with 2,867.