The real estate market in the Balearic Islands in 2023
H1 2023 :: Stable real estate purchases in Spain – challenges on the Balearic Islands
Periodically, the official figures of all notaries in Spain are collected, and they allow us to get a comprehensive picture of real estate transactions. Below we present three informative charts that illustrate the current situation in the Balearic Islands compared to other regions in Spain for the first half of 2023.
Transactions by foreigners in Spain – percentage share
The first chart highlights that the share of foreign buyers in Spain has reached its highest level to date at 21.4% of total transactions. Spain remains an extremely attractive market for foreign real estate buyers and interest in real estate investment remains high.
Distribution of nationalities of buyers
In the next chart, all real estate transactions in the first half of the year are broken down by nationality. Despite leaving the EU and more difficult conditions, British citizens remain the nation with the most purchasing power, followed by German buyers. This chart also includes nationalities that play a less decisive role in the Balearic Islands.
Real estate transactions in the regions on a pro rata basis compared with the prior-year period
The third chart shows the disturbing reality of the real estate market in the Balearic Islands compared to other regions in Spain. The Balearic Islands have seen a dramatic 32.1% drop in transactions compared to the same period last year (H1 2022). These numbers confirm what many of us have felt all year. There are numerous reasons for this drastic decline, and everyone has their own opinion. Some suggest that the conflict in Ukraine, prolonged economic uncertainties in Germany and other European countries, high interest rates or inflated prices may play a role. One can justify and refute all the arguments, so it is up to each person to decide what they see as the reason for the decline. Ultimately, everyone has to decide for themselves how to get the most out of the market.
An interesting aspect of the chart is looking at the average price per square foot in different regions. Here, the Balearic Islands clearly lead with an average of €3,945/m2 , which could be a possible reason.
