Island property market makes waves surpassing local government budget

THE Balearic Islands’ property market hit an all-time high in 2022 according to a report released on Monday, March 27. Mallorca’s property market was responsible for a significant portion of the sales.

The market generated a staggering €7.54 billion in sales during 2022. The mind-blowing figure is even more impressive when compared to the budget of the local government, which was €6.4 billion euros. The data means that the property market outperformed the local government and all of its public companies.

The market’s growth has been exponential, with a 350 per cent increase in just ten years. In 2013, the property market crashed with the sector barely generating €1.66 billion. Fast forward to 2022, and the market has not only bounced back but has also achieved record-breaking sales, numbers of foreign purchases, and average property prices.

The average value of a transaction last year was an astounding €402,624 euros, double that of 2013 when it was €206,003. However, the quantity of sales has not yet hit record numbers. In 2022, there were 18,738 sales, compared with the peak of 25,826 sales made in 2005.

Investors are looking to the future with excitement.