Mallorca Bulletin

A ROCK SOLID INVESTMENT

Palma.— There is a before and after in the housing market that is frequently referred to in the Balearics - the property bubble that preceded the financial crisis and what came afterwards. House prices had soared, but the crisis led to them tumbling. It was a s i m i l a r s i t u at i o n a c r o s s t he whole of Spain. And so 2007 is taken as a kind of benchmark for ho u s e p r i ce s . A r e p o r t by t he valuation company Tinsa shows that there is only one region of Spain where prices are now higher than they were in 2007 - the Balearics. T he p r i ce s a r e in fact 16.9% higher. The region that comes closest to the Balearics is Madrid, where prices are still lower than in 2007 but only by 2.5%. A t a p r ov i nc i a l c a p i t a l l e ve l , Palma and Malaga are the only cities where prices are above 2007 - Palma by 12.1% and Malaga by 4. 6 % . M a d r i d p r i c e s a r e 0 . 2 % lower; in Santa Cruz de Tenerife they are 1.2% lower. Tinsa's report points to a 10.8% increase in house value in the Balearics in 2024. This is the highest i n t h e co u n t r y. C a n t a b r i a ranks second with 8.5% and then the Canaries with 7.1%. The report also highlights the fact that the average household in the Balearics needs to allocate more of its disposable income to paying the mortgage (on a first home) than elsewhere in Spain. This is 67%, followed by Cadiz 43%, Madrid 40%, and Barcelona and Alicante, both 39%. Seguir leyendo