Balearic Islands property prices rise 14.1% in 2026
Property prices in the Balearic Islands, Spain, rose 14.1% year on year in the first quarter of 2026, according to data released by valuation company Tinsa on 19 August. The Balearic and Canary archipelagos recorded the strongest increase among the coastal areas assessed.
In coastal municipalities across Spain, excluding provincial capitals, the average price reached €1,992 per square metre, up 13.5% from a year earlier. Tinsa said demand remains resilient but is beginning to show signs of weakening, while limited supply continues to put upward pressure on prices.
For a typical household in the Balearic Islands, the first year of mortgage payments accounted for 59% of disposable income, above Tinsa’s recommended maximum of 35%. Málaga stood at 57% and Alicante at 46%.
Tinsa said holiday-home demand is competing with the supply of homes for permanent residents, as the tourist segment offers higher returns. The average estimated price for second homes was €3,150 per square metre, 11.6% above the national average; analysts saw further room for price rises in 77% of the coastal stretches examined, while 23% showed signs of stagnation or reaching a peak.
Coastal property values remain 30% below their 2007 boom-era highs in real terms, Tinsa said. In nominal terms, however, almost 100 municipalities, mainly in the Balearic and Canary Islands as well as Alicante, Málaga, Cádiz and Pontevedra, have exceeded those previous levels.
Coastal municipalities recorded 204,089 home sales in 2025, a 1.7% annual increase. New-build approvals rose 21.7% to 29,101 licences, including a 39% rise on the islands, although Tinsa said development remains largely focused on the more profitable holiday-home market.
Source: Europa Press / Mallorca.com