Formentera has been crowned as the place with the most expensive housing in Spain. In December, the average price per square meter on the island reached 9,173 euros, a figure that reflects the exclusivity and high demand in its real estate market. This figure places the island above other luxury destinations in the country, according to the ‘Annual report on sales prices’ of the real estate portal Pisos.com.
Balearic Islands, leader in prices and increases
At the regional level, the Balearic Islands are the autonomous community with the highest housing prices in Spain, with an average of 4,931 €/m² in December 2024.
This increase represents an annual increase of 19.08%, making the archipelago the third region where housing prices rose the most, surpassed only by Madrid (21.1%) and Murcia (20.6%).
Palma and other locations include
In Palma, the price of housing grew by 24.5% during 2024, reaching 5,206 €/m², which makes it the fourth most expensive capital of Spain, behind Donostia-San Sebastián, Madrid and Barcelona. Meanwhile, towns such as Lloseta registered the highest year-on-year increase in the region, with 33%, while Santanyí led the quarterly rises, with 9.03%. In contrast, Sant Lluís (-11.4%) and Muro (-6.4%) reflect significant drops in the value of their properties.
National context
According to the ‘Annual report on sales prices’ of the real estate portal pisos.com, the average price of second-hand housing in Spain closed December at 2,479 €/m², with a year-on-year increase of 14.7%. This picture shows an upward trend throughout the country, although the Balearic Islands continues to stand out for the exclusivity of its market.
Factors behind prices
Industry experts point out that the combination of limited supply, high demand and more attractive mortgage conditions are behind these increases. Ferran Font, Director of Studies at Pisos.com, assures that “the imbalance between supply and demand unleashes a very active competition among potential buyers, especially in luxury markets such as the Balearic Islands”.
