The actual price recorded in property sales in the Balearic Islands no longer falls below an average of 4,000 euros.

PalmThe Balearic Islands' real estate market continues its downward spiral towards extreme tension, with no indicator suggesting the slightest change. According to data from the Association of Property Registrars on declared property prices for the third quarter of 2025, the average price of housing in the Islands has reached €4,096 per square meter, the second highest in Spain, surpassed only by the Community of Madrid. Furthermore, the cumulative figures for the first nine months of 2025 also confirm this trend: at €4,000 per square meter, the Islands have, on average, the second highest price in the entire country.

This data places the Balearic Islands above traditionally expensive regions like the Basque Country and Catalonia, and far above the national average of €2,303/m², also at record highs. In Palma, the average price has already reached €3,996/m², a figure that places the Balearic capital among the five most expensive cities in Spain.

The seriousness of the situation lies not only in the price per square meter, but also in the year-on-year increase. According to land registry data, buying a home in 2025 was 11% more expensive than the previous year. This situation, of course, translates into much higher rents as well.

These aren't asking prices: this is what people are actually paying.

One of the key aspects of the report—and one highly valued by experts—is the origin of the data. The registrars' statistics do not include prices offered to real estate portals or market estimates, but rather the actual amounts declared in deeds of sale before a notary and registered in the property registries; that is, the money that has actually changed hands, with all the corresponding tax and legal implications. This methodology, more conservative than that of real estate portals—based on asking prices—makes the result particularly relevant. The fact that, using this criterion, the Balearic Islands are already approaching €4,100 per square meter gives a clear idea of the extent to which high prices have become the norm in the real market. Highs above the bubble.

The repeat sales price index—which compares the value of the same property at different times and is one of the methodologies used by property registrars—shows that housing prices in Spain are currently 26% higher than the 2007 peak and have accumulated a 104.7% increase since the 2014 lows. The year-on-year growth rate is [BK_SLT_LNA]. The average price also intensified its rise during the third quarter, with a quarterly increase of 2.3% and a year-on-year rate of 9.6%. Both new and resale housing are at record highs. "Nationwide, the price increase between 2014 and 2025 is 104%, and therefore, it can be said that housing prices have doubled," states the report from the Association of Property Registrars. [BK_SLT_LNA] High sales volume and strong foreign demand

In the Balearic Islands, one of the differentiating factors continues to be foreign demand. Although at the national level the share of purchases by citizens of other countries has decreased slightly to 13.58%, in the Balearic Islands it remains around 30% (29.46%), the highest percentage of all the autonomous communities. "This international component helps to sustain the pressure on prices, especially in coastal areas and in the single-family home market, in a territory with limited supply and heavily influenced by its insularity," says real estate advisor José Estela. In fact, in the Islands, a enormous activity linked to luxury, And both the developers and the construction sector have dedicated more effort to single-family homes than to multi-family dwellings in recent years.

In this regard, Francisco Irañeta, spokesperson for Idealista, asserts that "the main problem is the lack of housing. And not just any housing. Our society is not the same as it was 30 years ago. We need to build new homes adapted to current needs and make them affordable," he affirms.

Different decisions in the face of similar prices

The comparison with other regions with high prices highlights divergent political approaches. San Sebastián (Donostia), the capital city with the highest housing prices in Spain, at €5,962/m², was declared, along with other municipalities, a stressed residential market zone by the Basque government, which activated the mechanisms provided for in state legislation to limit rent increases and intervene in the market. In the Balearic Islands, despite consistently ranking among the most expensive regions at both the regional and municipal levels, no equivalent nationwide decision has yet been made, despite persistently high prices and the growing impact on access to housing for the resident population. The government of Marga Prohens adhered to the PP's national strategy of not taking advantage of the options offered by the State Housing Law. Demand prices: the contrast with Idealista

To see the difference between asking prices and actual sales, it's helpful to consult Idealista's latest report. According to this report, the sale price of resale homes in the Balearic Islands has risen by 9.6% in the last year, reaching €5,160/m², with record highs in municipalities like Palma (€5,086/m²) and Formentera (€8,977/m²). Some towns have seen spectacular increases, such as Sa Pobla (+37.9%) and Colonia de Sant Pere (+31.6%), while others have registered decreases, such as Sencelles (-9.6%). It's important to remember, however, that these are asking prices and don't necessarily reflect the final sale price. This difference reinforces the importance of land registry data as a true and official measure of the market.