Most sales are of secondhand homes, as there is very little construction of affordable new homes. | Pep Verger

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Sales of homes in the Balearics are rising again. January figures from the College of Notaries indicate that there were 1,087 transactions, an increase of 4.6% compared with January last year, when there was a 19.4% decrease.

Commenting on the figures, Ferrán Font, director of studies at Pisos.com, says that although the increase is not very significant, it does point to a new trend, as sales in the Balearics fell every month in 2023. He anticipates that the first half of this year will be very similar to January, while there will be a more significant increase in the second half because of an expected drop in interest rates.

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Hans Lenz, president of the ABINI association of national and international real estate companies, believes there will be a stabilisation of the housing market. "January 2023 was terrible, sales to foreigners fell by 27%." Unlike Font, he feels that it is premature to talk about an increase in sales for the second half of the year.

Natalia Bueno, vice-president of the API association of real estate agents, stresses that sales are directly related to mortgages. The forecast is that interest rates will continue to fall, so an increase in sales is likely, albeit she feels that it will not be notable.

She adds that properties are being sold which have been on the market for years and for various reasons, e.g. they need renovation, they don't have a lift, or they are in less desirable neighbourhoods.