Apartments with terraces in the Balearic Islands, an increasingly expensive luxury

The passage of the coronavirus in our lives has changed the way we conceive of the space we inhabit. The pandemic has opened our eyes to the outside world, creating an imperative need to connect our home to the outdoors. Deck fencing has taken a step back. There is no longer any point in gaining useful counters from within. Indeed, houses with few windows barely letting natural light through seem doomed to rental, and always temporarily, because these tenants will also seek to be owners, and not exactly of an interior apartment. The movement led by the buyer has reinforced this search for more versatile, more spacious, more sustainable and more open-plan housing.

Exterior rooms have become a powerful magnet for potential buyers in the real estate market, a booming trend since 2020. This was reflected in a study by real estate portal pisos.com, indicating that throughout this year , the most wanted property was an apartment of approximately 95 m², 3 bedrooms, located in the metropolitan area of ​​a large city, for a price of approximately 280,000 euros and, of course, with a terrace.

When you have this predilection for a market like the Balearic Islands, what is desirable in a peninsular capital is essential here. The proximity to the sea imposes its dominance, and the request is clear that they want to go out on a terrace or in a garden and feel the mediterranean breeze. The big hurdle is the limited supply available in the Balearic Islands. Its orography imposes natural barriers that do not allow new construction production levels to respond to pressure, not only from buyers but also from tenants. This is why prices are always high and make this region the one that requires the most economic effort in terms of the number of years needed to acquire a property.

In addition, the rise in the price of new constructions affects second-hand goods. According to the latest selling price report from pisos.com, the average price of a second-hand item in the Balearic Islands was 3,376 euros per square meter in May 2022. Buying a property in the Balearic Islands means buying in the most expensive capital of Spain. For its part, in Palma de Mallorca, the average price per surface unit amounts to 3,523 euros, placing the Balearic capital in fourth place among the most expensive Spanish capitals. These prices would increase by up to 30% if the apartment in question had a terrace.

Live in a privileged setting like the islands of Mallorca, Ibiza and Formentera requires a considerable financial effort, and the closer you are to the sea, the higher the selling price. On the other hand, the purchase of real estate for investment purposes has exploded in the Balearic Islands, which puts more obstacles in the way of residents. Just look at the ranking of the most expensive municipalities in Spain to realize this. The top 5 are made up of municipalities located in the Balearic Islands, four in Ibiza and one in Majorca: Sant Josep de sa Talaia (€5,604/m²), Ibiza (€5,468/m²), Santa Eulàlia des Riu (5,449 €/m²). m²), Calvià (€4,968/m²) and Sant Antoni de Portmany (€4,633/m²). In all these enclaves, proximity to the coast is a luxury that is paid for and an outdoor exit is an essential condition, even in the urbanizations furthest from the seafront.