Mallorca property: Balearic prices jump 14.3%

In Palma on Mallorca, homes average €3,551 per square metre: prices across Spain’s Balearic Islands rise 14.3% year on year in the third quarter of 2026. Property valuation company Tinsa published the figures on Wednesday, 30 September. Palma is now Spain’s fourth most expensive city for homes.

Palma prices rise, but the islands climb faster

Palma’s average price rose 10.1% from a year earlier. Only San Sebastián, Madrid and Barcelona had higher average prices per square metre in the third quarter.

Across the Balearic Islands, prices adjusted for inflation have passed their 2007 property-bubble peak by 1%. They are the only Spanish autonomous community to have done so. Palma itself remains 6% below its inflation-adjusted peak.

Buying takes a bigger share of income

Tinsa points to a shortage of homes for sale, inflation and construction costs as pressures pushing prices up. It also saw signs of demand easing during the first half of the year.

The share of income needed to buy a home rose to 36.9%, from 35.7% in the previous quarter. Tinsa research director Cristina Arias says it is moving further above the 35% level considered reasonable.

Topics: Housing · Tourism · Politics · Economy · Palma

Source: Europa Press / Mallorca.com