The real estate market in the Balearic Islands is experiencing a remarkable upswing that is stronger than in any other Spanish region. In the first quarter of 2024, prices for new and second-hand properties rose by 8.3 percent year-on-year.
This momentum positions the Balearic Islands, and Palma in particular, as the only areas in Spain where property prices are still significantly higher than during the boom of the 2000s. Despite a nationwide average increase of 3.3 percent compared to the previous year, Mallorca recorded the highest increase of all Spanish real estate prices, which makes the island particularly attractive for investors and property buyers.
Claus von Benz forecasts a further positive development of the market, boosted by the expected interest rate cut (Euribor). We believe it is possible that price increases of 7-10 % per year will be the rule in 2024, 2025 and 2026.