Property Prices Continued To Soar In Mallorca In 2023

Looking out at the Tramuntana mountains from Campanet in Mallorca in winter 2024

Recent property reports* have indicated that whilst there was a fall in house prices throughout some areas of Spain during 2023, with the national increase being just 0.1%, the Balearics bucked the trend with increases of over 2% during the year.

The Outlook For 2024

2024 looks to continue this trend with the first quarter of the year reporting an increase of 8.3% year on year for the Balearics, an increase only matched in Valencia and the Canaries.

The national level of increase was only 3.3%, so Mallorca and its smaller sister islands continues to outperform Spain as a whole.

Prices do appear to be stabilising throughout Spain, but there is evidence that the Balearics will continue to command high prices, especially in popular tourist areas, due to a shortage in supply and a continued influx of investors and 2nd home buyers from overseas with plenty of buying power.

These international buyers are usually less impacted by the economic constraints of higher interest rates and inflation and are prepared to pay higher prices to get what they want.

It should be noted that recent data from the Royal College Of Notaries is more cautious regarding mortgages and transactions, but their data does point to demand and sales remaining steady, albeit with a slight slowing down in demand after the mad post pandemic years.

A quiet and atmospheric street in Campanet, Mallorca, lined by traditional buildings

In Conclusion:

It would certainly seem that prices will continue to rise on these ever popular islands, ensuring that buying here is unlikely to ever be a bad investment.

Those looking to buy here should act soon to secure themselves a part of this wonderful piece of paradise.

* Report from Tinsa 

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