The price of urban land in the Balearic Islands reached an average of 296,7 euros per square meter at the end of 2020, according to data published by the Ministry of Development. It was up 3,7% compared to a year earlier and the Islands were one of only three communities where urban land became more expensive in the year of COVID.
The Balearics have the most expensive urban land in Spain and the average value is double the state average (142,1 euros per square meter). In the State as a whole, last year this value fell by 9,7% and its price is one of the lowest in the historical series. The opposite occurs in the Islands, where urban land becomes more expensive year after year and its value has already reached that registered at the time of the real estate boom.
THE SCARCITY, ONE OF THE REASONS FOR ITS PRICE
One of the reasons that explains the high price of urban land in the Balearic Islands is its scarcity, according to constructors and developers for a long time. They have repeatedly warned of the high cost of land in the Islands and the high demand, hence the difficulty of accessing affordable housing.
The demographic pressure in the Balearic Islands is one of the highest in Spain. In its latest business report, the construction employers' association warned of the forecasts of the National Institute of Statistics, which contemplates a population increase for the Balearic Islands of 234.000 inhabitants for the next 20 years, that is, an average of more than 15.000 inhabitants per year. The employer warned that if this estimate is met, homelessness will increase, whose deficit today is 15.000.
Source: Last minute Mallorca