The price of housing in the Balearics has risen by 18% in real terms since 2007, while household income has only grown by 6%. This is stated in a report by the Círculo de Economía de Mallorca.
According to Última Hora, the Círculo de Economía de Mallorca has produced a report that places the Balearics among the regions with the greatest imbalance between housing prices and income levels. The price of housing in the Islands has risen by 18% in real terms since 2007, compared to the 6% increase in household income. Across Spain, the inflation-adjusted housing price is still 27% below the level prior to the real estate crisis.
The study, titled ‘Quality of Life in the Balearic Islands: A Multidimensional Perspective’, analyses 82 official indicators between 2004 and 2024 across the 17 autonomous communities. Its authors are Luis Álvarez León, Bartomeu Coll Vicens, José Vicens Colom, and José María Vicens Gómez.
The most striking data is the real GDP per capita. In the Balearics, it has barely grown by 0.7% between 2000 and 2023, the worst performance among all communities, compared to the 19% average in Spain. The Balearic economy grew by 44% during this period, but the population increased by 43%, the largest rise in the country. Researchers dismiss the pandemic as an explanation for this stagnation, as until 2019 the accumulated growth was only 0.1%.
The estimated price per square metre, according to the study's model, would be 2,246 euros in constant 2024 euros. The actual price reaches 3,271 euros, which is 46% more. Only the Canary Islands show a greater deviation, at 58%. The authors point to insularity, land scarcity, and pressure from foreign tourist and residential demand, although they warn that the data does not allow for establishing a causal relationship.
According to the College of Property Registrars, 29.9% of housing sales in the Balearics during 2025 were to foreign buyers, compared to the 13.8% average in Spain. In terms of rentals, prices have risen by 23% since 2011, adjusted for inflation, the largest increase in Spain.
In education, the archipelago is the second community with the highest early school dropout rate, at 18% among young people aged 18 to 24, compared to 12% in the rest of the country. Since 2021, the dropout rate has risen again, and only 34.6% of the Balearic population aged 25 to 64 has higher education.
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