The Balearic Islands are once again leading the Spanish real estate market. In the first quarter of the year—according to data from the National Institute of Statistics (INE)—the average value of mortgages taken out on homes in the archipelago reached 300,000 euros, a record unmatched by any other autonomous community.
The average in Spain is 173,000 euros, 42% lower. After the Balearic Islands, the list is topped by Madrid (256,000 euros), Catalonia (188,000), and the Basque Country (183,000). At the other end of the spectrum, the lowest average mortgage amounts in the first quarter were found in Extremadura (€103,000), Murcia (€112,000), and La Rioja (€114,000).
The rise in the Balearic Islands has been meteoric. Before the pandemic, in 2019, the average mortgage in the first quarter was 161,000 euros. That’s nearly half. Current amounts are the highest on record, with mortgage loans reaching levels never before seen in the INE’s historical data series, which began in 2003.
Between January and March, 2,729 home mortgages were signed in the Balearic Islands, totaling 819 million euros. Seven years ago, before the pandemic, 3,279 mortgages were signed in the first quarter, totaling 480 million euros. In other words, fewer loans are being granted now, but for larger amounts.
A more selective market
The Balearic Islands’ residential market continues to see strong demand amid limited supply, which has driven up the average value of both new and resale transactions—a 13% increase in 2025, according to the INE. And, as a result, the amount of mortgage loans has also risen.
The result is a more selective market, with fewer transactions—a 7.5% year-over-year decline in the first quarter—and one in which buyers with greater financial capacity and creditworthiness profiles strengthened by bank lending criteria are gaining prominence.
In addition, the average interest rate on new mortgages in Spain remained stable at 2.88% at the end of the first quarter. This reflects a fixed rate of 2.78%—below historical lows—and a variable rate of 2.86% on new mortgages, levels not seen since 2017.
The record-high mortgage volume in the Balearic Islands thus reflects the pressure that the lack of supply is exerting on home prices—which is narrowing access for middle-income earners—but also the strength of a market that continues to attract demand and concentrate high-value transactions.
