The Balearic Islands has the highest increase in second-hand housing prices in one year, with a rise of 14.3%, according to data from the real estate portal Pisos.com, which also places Formentera as the most expensive municipality in Spain.

In detail, second-hand housing on the Balearic Islands in December 2022 had an average price of 3,794 euros per square meter. At the 6 month mark, the Balearic Islands led with an increase of 9.7%. On a monthly basis, it grew by 1.4%. On a quarterly basis, it rose by 5.23%, the highest increase at the national level.

Thus, the Balearic Islands was the autonomous region with the highest housing prices in the country, ahead of Madrid (3,331 €/m2).

Palma registered a monthly increase of 3%, the largest in the country. Year-on-year, housing prices rose by 15.83%, the third sharpest rise in Spain. With 3,934 euros per square meter in December 2022, Palma was the fourth most expensive provincial capital.

With regards to Balearic municipalities, Binissalem (9.27%) was the third Spanish municipality with the sharpest quarterly rise, while Muro (-7.16%) fell the most in the Balearic Islands.

Year-on-year, Sant Llorenç des Cardassar (31.4%) had the second highest increase in Spain, while Son Servera (-7.24%) fell the most in the region. Sa Pobla (1,570 €/m2) was the most affordable municipality of the autonomous region in December 2022, while Formentera (9,993 €/m2) topped the list of the most expensive municipalities in Spain.

Overall, second-hand housing prices in Spain averaged €1,984 per square meter in December. This figure represented a year-on-year increase of 5.63%. Compared to the last quarter, the increase was 1.14%. On a half-yearly basis, the increase was 2.99%. The monthly increase was 0.94%.

Ferran Font, Director of Studies at Pisos.com, has pointed out that the year has closed with increases in housing prices, but that throughout the year, “sales and purchases have performed excellently”. “Its extraordinary momentum has only been disrupted in recent months by increases in interest rates and, consequently, in mortgage loans, well as by people’s tendency to contain spending in times of inflation,” he said.

According to Font, “the tendency to save, which is always motivated by economic difficulties, will delay purchase decisions, which will help to moderate prices”. The spokesman for the real estate portal rules out any abrupt decline: “Stability will dominate in the big cities, given that new construction is scarce and second-hand construction is picking up the slack”.