There is no other area of Spain in which the price of housing is currently growing as much as in Balearic and Canary, largely due to the boost in foreign demand. At the end of August, the average value of residences, both new and used, was 7.9% higher than in the same period of 2020 in both archipelagos, according to the latest report published by the appraisal company Tinsa. This increase is the highest in the country, whose average is 5.2%, and also leaves behind the peninsular Mediterranean coast, where this increase is 6.1%.
But in addition, Tinsa provides relevant data, which shows that the average price of residential property in the Balearic and Canary Islands is already close to the historical maximums that were recorded during the early years of this century, in the middle of the housing bubble.
The aforementioned report states that the average value of both archipelagos is only 9.4% lower than those historic highs, a situation that again is unparralleled in the rest of Spain, since the country’s average remains 30.2% below what was paid during the period of the ‘bubble’ and, to cite another example, on the peninsular Mediterranean coast that figure is maintained at 40%.
The president of the Balearic Association of National and International Real Estate (ABINI), Hans Lenz, and the spokesman for the Balearic Association of Real Estate Services (ABSI), Toni Gayá, point out two key elements that explain the upward trend in the price of Balearic housing. The first is that with the reopening in March of the arrival of foreign visitors, there has been a boom in sales among this group, with an additional key: the rush to have a residence in Mallorca have caused very little negotiation in prices, with buyers agreeing to pay what the seller demanded, in any case with very small discounts.
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