The Balearic Islands continue to lead Spain’s property market growth. According to the annual Idealista report, the average price of second-hand properties in the islands rose by 25.3% in 2017, reaching €2,472 per square metre — the highest increase recorded among all Spanish regions that year.
Where Are Properties Most Expensive?
The most expensive municipalities in the Balearic Islands are:
- Santa Eulària des Riu – €3,348/m²
- Sant Antoni de Portmany – €3,076/m²
- Calvià – €3,062/m²
Meanwhile, the most affordable areas include:
- Inca – €1,206/m²
- Sa Pobla – €1,276/m²
- Felanitx – €1,307/m²
The only area that registered a slight decrease was Colònia de Sant Jordi, where prices dropped by 0.7%.
Palma Leads the Market
The city of Palma de Mallorca experienced the most significant growth — a 29.1% year-on-year increase, making it the Spanish capital with the sharpest rise in property values in 2017.
Other municipalities showing strong growth included Sant Antoni de Portmany (+20.6%) and Calvià (+20.1%).
These numbers confirm that demand in coastal and tourist areas remains extremely strong, driven by both foreign buyers and domestic investors seeking long-term opportunities in Mallorca and Ibiza.
The National Context
At the national level, Spain’s average price for second-hand properties rose by 2.4% during 2017, reaching €1,586/m².
After Palma, the next strongest markets were:
- Málaga (+16.7%, €1,934/m²)
- Barcelona and Madrid, which also experienced steady growth.
According to Fernando Encinar, head of research at Idealista, “Spain’s real estate market continues to move at two speeds — with the islands, Madrid, Barcelona, Málaga, and Valencia pushing prices upwards, while central regions still lag behind.”
Encinar also predicted that “in 2018 the market will maintain its positive trajectory, with more transactions and mortgage approvals, and further price increases due to the lack of new construction in major cities.”
(Source: Idealista.com and Economía de Mallorca)
Legal Advice for Buyers and Investors
If you are considering buying or selling property in Mallorca, Ibiza, or Menorca, it is essential to ensure all legal and fiscal aspects are in order. At Frau Legal, our team of real estate lawyers assists clients through every stage of the process — from due diligence to tax planning and contract execution.
For tailored legal advice or to book a consultation, visit our contact page.
