Bricks and mortar is the ultimate investment goes the old adage and in the case of Mallorca this is certainly the case. Property prices in Mallorca rose by a massive 16.5 percent in January, after a surge in demand from buyers rushing to avoid paying higher interest rates.

Nationwide, prices jumped 9 percent in January from a year earlier, according to a monthly index compiled by Fotocasa, a real estate website. That was the sharpest rise since September 2006. The most expensive city was San Sebastian in the Basque region, followed by Barcelona and the capital, Madrid. No prizes for guessing which was the most expensive island.

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“We had never detected such a large price increase in such a short period of time,” said María Matos, a spokesperson for Fotocasa. “This increase brings us back to 2006 levels, prior to the real estate bubble when the cost of housing suffered a great increase.”

The price increase will cause some concern in Mallorca because young people are unable to get on the property ladder and there is a big shortage of social housing.