The Balearics, the territory where the price difference between protected and free housing is the largest in the State
The Archipelago also registers the second highest average price of free housing, with 3,885 euros per square meter, while sales fall by 18.3% in the first quarter
PalmaThe Balearic Islands are the autonomous community with the largest difference between the price of protected housing and that of second-hand free housing. According to the latest bulletin from the Observatory of Housing and Land, published this Wednesday by the Ministry of Housing and Urban Agenda and corresponding to the first quarter of 2026, the average value of protected housing is 70.1% lower than that of used free housing, the highest percentage in the entire State.
Following the Islands are Gipuzkoa (65.4%), Madrid (62.6%), Barcelona (59.6%), Biscay (59.3%), and Malaga (57%), which evidences the enormous gap between the two residential markets in the Archipelago.
The report also confirms the strong surge in prices of free housing in the Balearic Islands. With an average price of 3,885 euros per square meter, the Islands are the second most expensive territory in the State, only surpassed by Madrid, where the square meter reaches 4,047 euros. Furthermore, the price of free housing in the Balearic Islands has increased by 13.1% compared to the same period last year.
Despite this increase in price, the real estate market has moderated its activity. During the first three months of 2026, home sales formalized before a notary fell by 18.3% in the Balearic Islands, a decrease similar to that recorded in A Coruña (-19.1%) and Almeria (-17.5%).
Regarding mortgage foreclosures, the Archipelago registered 39 during the first quarter, a figure much lower than that of other communities such as Andalusia (1,226), Catalonia (906), the Valencian Community (657), Madrid (423), and Murcia (232).
Record construction of protected housing in the State
At the state level, the bulletin highlights that the construction of protected housing continues to accelerate. During the first quarter of 2026, 5,215 protected homes were completed, 74.9% more than a year earlier, the highest figure for a first quarter since the outbreak of the real estate crisis in 2008 and a record since records began. The Ministry attributes this trend to the boost from public housing policies in recent years.
The construction of free-market housing also maintains a positive trend. In the first three months of the year, 25,480 homes were finished, 17.8% more than in 2025, while 39,196 were started, 12.7% more and the highest volume for a first quarter in the last 18 years.
In parallel, financing for home acquisition continues to grow. Between January and March, 131,554 mortgages were constituted, 9.7% more than a year earlier, the highest figure for a first quarter in the last fifteen years. Mortgages now finance 80.5% of sales, the highest percentage in the last 23 quarters.
The report also points to an increase in protected rehabilitation activity and employment in the construction sector. During the first quarter, 21,155 final qualifications and 19,613 provisional ones were granted for protected rehabilitation actions, while the sector employs 1.74 million people, 7% more than a year ago.