Balearics the only Spanish region with house prices higher than before the 2008 crisis

Income needed for mortgage payments far higher than elsewhere

Estate agent window in Menorca

House prices seem to be heading in only one direction - up | Photo: Josep Bagur Gomila

Andrew EdePalma31/12/2024 07:51
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There is a before and after in the housing market that is frequently referred to in the Balearics - the property bubble that preceded the financial crisis and what came afterwards. House prices had soared, but the crisis led to them tumbling. It was a similar situation across the whole of Spain. And so 2007 is taken as a kind of benchmark for house prices.

A report by the valuation company Tinsa shows that there is only one region of Spain where prices are now higher than they were in 2007 - the Balearics. The prices are in fact 16.9% higher. The region that comes closest to the Balearics is Madrid, where prices are still lower than in 2007 but only by 2.5%.

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At a provincial capital level, Palma and Malaga are the only cities where prices are above 2007 - Palma by 12.1% and Malaga by 4.6%. Madrid prices are 0.2% lower; in Santa Cruz de Tenerife they are 1.2% lower.

Tinsa's report points to a 10.8% increase in house value in the Balearics in 2024. This is the highest in the country. Cantabriia ranks second with 8.5% and then the Canaries with 7.1%.

The report also highlights the fact that the average household in the Balearics needs to allocate more of its disposable income to paying the mortgage (on a first home) than elsewhere in Spain. This is 67%, followed by Cadiz 43%, Madrid 40%, and Barcelona and Alicante, both 39%.

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