Palma property prices hit €5,329 a metre, third in Spain

Palma property prices stand at €5,329 per square metre for second-hand homes in August 2026, putting the city third among Spain’s provincial capitals. Across the Balearics, the average is €5,160 per square metre, up 1.2% on August last year. The property portal pisos.com says the islands remain Spain’s most expensive autonomous community and province for this type of home.

That Balearic average is more than double the national figure of €2,461 per square metre. It is also 0.4% lower than in July, but pisos.com’s head of research, Ferran Font, says this does not mean prices are falling; market activity is adjusting to ever-higher values.

Palma trails only San Sebastián and Madrid

Only Donostia-San Sebastián, at €6,676 per square metre, and Madrid, at €6,418, rank above Palma. Jaén is the cheapest provincial capital in the survey at €1,275 per square metre.

The Balearics top the regional table ahead of Madrid, where the average is €4,614, and the Basque Country at €3,327.

More buyers than homes in pressured areas

Font says summer has kept upward pressure on second-hand homes. In many areas with the greatest housing pressure, there are more potential buyers than homes available.

Homes are becoming too expensive for part of the demand, he says, yet mortgages continue to set records. Some buyers are bringing purchases forward because future European Central Bank monetary-policy decisions could change financing conditions.

Topics: Housing · Politics · Economy · Palma

Source: Europa Press / Mallorca.com