A decline in housing prices in Spain, but an increase in the Balearic Islands.

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According to valuation company Tinsa, house price growth in the first quarter of 2024 was five percent higher in the Balearic Islands than in the rest of the worldSpain. The year-on-year growth rate was 3.3% at the national level and 8.3% in the Balearic Islands. While compared to the fourth quarter of 2023, the increase was only 0.1% nationally. Several regions experienced a slight decrease, but not in the Balearic Islands, where the increase exceeded two percent.Canary IslandsandValenciaalso experienced similar growth.

While prices in general are slowing slightly, this is not the case for the Balearic Islands, according to Cristina Arias, director of research service Tinsa: “The lack of supply in areas of high demand will continue to support prices.” If there has been a slowdown in prices, Arias said this is happening “more slowly” in tourist areas.

“This is in line with the profile of secondary home buyers with greater ability to pay, whose decision to buy has been less influenced by the context of high inflation and high interest rates.”

The average house price in Spain has risen 38.6% since the lows of 2015 and remains at a level that is 18.2% below the highs recorded in 2007 before the financial crisis. Tinsa's research indicates that the Balearic Islands are the only region with price levels higher than during the “boom” in the marketreal estate. * It should be noted that different sources can provide sometimes contradictory information. In February, data from the College of Notaries showed that house prices in the Balearic Islands fell by 0.4% in 2023, the first decline in ten years.