Palma: Even Outskirts Break the 300,000-Euro Mark – Buying Becomes a Challenge

When Even the Peripheries Are No Longer Affordable

Last week, I was standing at the bus stop on Carrer Aragón around 8 AM, and I saw three new "For Sale" signs in a side street. You didn't see that often before. The heated debate about affordable housing is at home here, not just in the old town or at the Paseo.

In some northern neighborhoods like Son Forteza or El Rafal, people are currently paying an average of around 3,311 euros per square meter. If you calculate that up, you land a little under the 300,000-euro mark for a 90-square-meter apartment — if there are no surprises. For many who work here, this brings noticeable sleep deprivation.

Palma vs. the Rest of Spain

The Balearic Islands are now among the most expensive regions in Spain: On average, apartments are traded for about 396,573 euros, significantly more than the national average of around 226,226 euros. This is noticeable everywhere — in the search for a two-room apartment just as much as in the consideration of the additional costs.

If you look at modern neighborhoods like Santa Catalina, you need to dig even deeper into your pockets. There, 90-square-meter apartments are often only available beyond 500,000 euros. It’s no wonder that many commute to the northern outskirts or even to neighboring towns.

Where to Move and What Compromises Remain?

Some see El Vivero as the last affordable option within the city: just over 3,100 euros per square meter. Other neighborhoods like Son Cladera or Son Fuster are already closer to 3,400 euros. Good public transport connections and a few new shops have improved the reputation of the periphery — but also the prices.

An alternative for bargain hunters are apartments in need of renovation. Sounds tempting, but is often a case for DIY enthusiasts with deep pockets: renovations, permits, unexpected costs — in the end, you might not save much.

Many young people tell me they have rethought their long-term plans: commuting instead of living in the city center, flat-sharing instead of homeownership, or moving to the outskirts to Marratxí or Santa Maria, where land prices can still be 15-25 percent lower. Not an easy choice.

Conclusion: For average earners, the real estate market in Palma remains a challenge. Not everything is lost — those who are flexible and willing to make compromises can find niches. But the dream of having an affordable home is still significantly harder to realize here than in many other parts of Spain.