Property for sale in Mallorca Real Estate sales in Spain the latest data on real estate sales in the Balearic Islands and Spain. The information is compiled from the government data sources by Statista from the sales recorded by notaries offices throughout Spain, and transactions recorded by Spanish banks.
Price reductions that had been forecast for 2023 in Spain did not arrive, the cost of buying residential property in Spain increased by 7% in the last year. In some very dynamic markets, such as Madrid or Barcelona, prices have reached extremely high levels, in the centre of both cities. The upward trend has been much more marked in the Mediterranean arc and the Balearic Islands, driven by international demand with high purchasing power and limited supply. In Palma de Mallorca the capital of the Balearic Islands, prices rose by 15% during 2023. The average price per meter is deceptive in the Balearic Islands as it doesn’t reflect the high demand in areas with very dynamic markets where prices surpass those of Madrid and Barcelona.
The year 2023 will close slightly below 600,000 transactions, representing a significant drop in transactions between 8% and 10%. Even so, the sales figures for the first three quarters were high, 19% higher than in the first nine months of 2019 and the same as those sold in 2017. The step effect, due to the comparison with a year with as much activity as 2022, is responsible for the apparent contradiction between a very large fall and the fact that 2023 is, in terms of sales, one of the best years in the last 15 years.
The number of mortgages signed has fallen significantly and is expected to close 2023 with a decline of more than 25%, with prices continuing to rise to levels not seen since 2016. So, who is buying property in a real estate market with rising prices. Half of the real estate transactions are closed without a mortgage. According to the data, more than half of the people buying a property already have another property of their own that has grown in value. Many are taking advantage of the increase in value to sell and reinvest in two or more properties. Apartments and smaller homes are popular purchases as parents downsize to more manageable properties and buy second or third properties to protect their children from an increasingly expensive rental market. Renting a property in Spain is 9.2% more expensive than a year ago, in capital cities like Palma de Mallorca price rises are even more significate Palma saw monthly rental cost rise by 15.2% in 2023.
