The price of housing rose in the Balearic Islands more than in any other autonomous community in 2020. This is clear from the data of the latest Servihabitat Trends report on the housing market in Spain. Last year, despite the pandemic, the price increased 4.6% on the islands, becoming the community in which the price increased the most compared to the previous year. However, in all territories there was an increase in prices.
According to the report, the price has been one of the indicators least impacted by COVID-19, as it is a much healthier sector and with more solid companies. In addition, he points out that the prices of the habitual residence are going to be maintained in the next 6 months, although they are not so optimistic regarding the holiday home. In fact, in 2020 Mallorca, with less dependence on the holiday market, maintained good levels of activity in habitual residence, especially in new construction.
Bigger and with outer space
The internal demand for housing in the Balearic Islands has changed its preferences towards larger houses, with more outdoor spaces (terraces, patios, gardens). Also somewhat more delocalized from urban centers, according to data from Servihabitat Trends. Confinement and telework mark these new trends in the sector. Homes of less than 90 m2 have lost their share, in favor of homes with larger dimensions and with more rooms.
The attractiveness for the new construction makes it the least impacted. However, the report points out that the development sector will be more cautious when starting new projects given the uncertainty and financing restrictions caused by the pandemic. For its part, the holiday home market (both nationals and foreigners) has been greatly impacted on the islands by reduced mobility and less tourist activity. It fell by 31.8% in the Balearic Islands, compared to the national average of -19.9%.
Foreigners prefer the Mediterranean
The slowdown in home buying by foreigners was already taking place in periods previous events, but COVID-19 has accentuated the decline in this indicator. Of course, 90% of purchases by foreigners continue to be concentrated in the main capitals and on the Mediterranean coast.
Balears, among the highest rents in Spain
As for the rental market, it has been reinforced by the pandemic as a safe haven for investors, accelerating the upward trend that it had been showing in recent years. The Balears is the third Spanish community with the highest prices: an average of 1,037 euros (compared to the national average of 893 euros) for a home between 80 and 90 m2. The islands are only slightly surpassed by Madrid and the Basque Country.