The price difference between subsidized and market-rate housing in the Islands: owning a home or giving it up forever

Housing prices continue to break records in the Balearic Islands. According to data from the Ministry of Housing and Urban Agenda, the difference between the price per square meter of publicly subsidized housing and that of free market housing is nearly 70%, the highest rate in Spain. Those fortunate enough to acquire a home at a public price pay approximately 70% (68.6%) less than the majority, who must pay the market price for an apartment. According to industry experts, this is a clear symptom of the extraordinary increase in housing prices, which, for many young people who cannot access subsidized housing, makes homeownership impossible. Madrid and Barcelona do not reach the 60% price difference between public and private market housing, a figure that highlights the aggressiveness of free market prices in the Balearic Islands. The disparity between the figures for the Balearic Islands and those for other parts of Spain is enormous. In seven provinces, the price of subsidized housing is even higher than the market price: Ciudad Real (+37.2%), Jaén (+36.4%), Teruel (+20.3%), Cuenca (+19.3%), León (+10.1%), Lleida (+2.7%), and Córdoba. The Balearic Islands have an enormous demand for subsidized housing. According to the latest data from the Balearic Housing Institute (IBAVI), some 8,200 families are on the waiting list for social rental housing. In Mallorca, half of them (approximately 5,500 families) are waiting, while more than 2,000 applications come from Ibiza. In Menorca and Formentera, the pressure is also significant, with 650 and 90 families, respectively, registered on the waiting list. To address the situation, the Balearic Housing Institute (IBAVI) has recently reviewed and updated the register of applicants for subsidized housing. Following this process, 4,638 families have had their documents verified and their status officially recognized. The highest concentration is in Mallorca (3,418 families), followed by Ibiza (781), Menorca (441), and Formentera (32). Meanwhile, an official report estimates that 27,662 subsidized housing units would be needed to cover the current deficit in the Balearic Islands, a figure that highlights the urgent need to invest in social housing policies to meet a constantly growing demand. This data demonstrates how the lack of affordable housing has become one of the main social concerns in the Balearic Islands, requiring a decisive response from the authorities and strategic planning to prevent the waiting list from growing uncontrollably. Price per square meter

The Ministry's report, prepared by the Housing Observatory, has calculated the real price of privately owned housing across Spain during the second quarter of 2025. According to these figures, the significant territorial inequality in price per square meter is once again confirmed. Madrid leads the way at €3,630.9/m², followed by the Balearic Islands (€3,518.2/m²) and Gipuzkoa (€3,115.7/m²), which remain the most expensive provinces to buy a home. Barcelona, ​​Biscay, Malaga, and Álava exceed the €2,200/m² mark, reflecting the growing pressure in major urban centers and areas with high residential demand. At a second level, with prices between €1,800 and €2,200/m², Ceuta, Las Palmas, Santa Cruz de Tenerife, Melilla, Girona, and Cantabria stand out. These provinces show a moderate upward trend, although still far from the figures of the major cities. The intermediate range—between €1,400 and €1,800/m²—includes Valladolid, Granada, Guadalajara, A Coruña, Asturias, Tarragona, Pontevedra, Seville, Valencia, Zaragoza, Cádiz, Alicante, and Navarre, which present a more balanced market with increases. A total of seventeen provinces are situated between €1,000 and €1,400/m², forming the bulk of the Spanish residential market. At the other end of the spectrum, nine provinces maintain prices below €1,000/m²: Ciudad Real, Jaén, Cuenca, Zamora, Cáceres, Teruel, Badajoz, León, and Palencia. These areas are the most affordable in the country, although it is true that they also have more limited real estate activity.

The Balearic municipality where housing prices have skyrocketed… and it's not what you think