The square metre in the Balearic capital reached 3,467 euros, with an increase in January of 9.9%, compared to the average price in Spain of 1,922 euros, four points lower. It represents a higher rise than inflation

The price of housing in Palma is soaring. The square metre in the Balearic capital reaches 3,467 euros, with an increase in January of 9.9%, compared to the average price in Spain of 1,922 euros, four points below.

3,467 euros per square metre is the average price of used housing in Palma that breaks records. It is the fourth highest in Spain, only surpassed by San Sebastian (5,124 euros), Barcelona (4,050) and Madrid (3,929). This is according to a report by the portal Idealista, which also combines data from the National Institute of Statistics.

House prices outstrip inflation

The Balearic capital is one of the four Spanish cities where the increase in the sale price in January 2023 is higher than inflation. The price of used housing for sale in Spain has started 2023 with a rise of 5.4% year-on-year in January. Therefore, the average price is 1,922 euros per square metre, 45% below the average price in Palma, but still below the CPI of 5.8%.

Average price in provincial capitals

According to the report, 16 cities have registered price increases higher than the inflation figure released by the INE. Santa Cruz de Tenerife (18.7%), Alicante (13.2%), Valencia (11.4%), Guadalajara (11.3%) and Cuenca (10.8%) are at the top and in some cases double and even triple the CPI index.

Prices in the Balearic Islands, above the 2007 bubble

Palma (9.9%) has the highest average price among 16 capitals, with 3,467 euros per square metre; followed by Seville (8.1%) and Malaga (8%), which has reached historical highs of 2,365 euros per square metre. With rises in January above inflation.

In contrast, Madrid (4.9%) and Barcelona (3%), San Sebastian (3.2%), with the highest average prices per square metre in Spain, recorded rises below inflation.