The cost of housing in Palma de Mallorca has soared 10.87% this year

THE average price per square metre is now €3,630, according to a report from the website pisos.com.

This makes Palma the fourth most expensive province in Spain in a ranking led by San Sebastian in the north of Spain.

And the Baleares is the most expensive region to buy a house, even more than the capital of Spain, Madrid.

Director of pisos.com, Ferran Font said “The residential market has experienced an incredible boom this year in the Baleares.”

Since January, houses across Spain have gone up 10.12%.

Experts are warning that due to the cost of living crisis, housing demand may fall in the next few months,with a knock on effect of decreasing prices.

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