View of Palma, Mallorca

Palma, where prices are among the highest. | Teresa Ayuga

Andrew EdePalma07/03/2023 17:05
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According to the property website Fotocasa, house prices in the Balearics in February broke all records for the month. Ana Mato, the website's director of studies, said on Tuesday that "we have never detected such a large price increase in such a short period of time".

Fotocasa data for February indicate that the price of housing in the Balearics rose 20% year-on-year to an historic peak of 3,466 euros per square metre. The cost to rent, meanwhile, was above 15 euros per square metre, a 26% rise, according to Fotocasa's real estate index.

Mato explained that the increase in house prices was the second highest based on the website's records, only surpassed by 20.4% in May 2006, which was around when a housing bubble in the Balearics was becoming evident. She suggested that the increases coincide with the European Central Bank's monetary policy change. "Demand has resurfaced and society is experiencing a 'buy now or never' moment before mortgages tighten further."

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* While information from websites such as Fotocasa may be an indication, sources like the National Statistics Institute and notaries provide official and more complete information.