The price of a square meter of warehouse space in the Balearic Islands is already more expensive than housing prices, five times the cost of housing in five autonomous communities of Spain. It pales before the prices of residential real estate in the archipelago in comparison with other regions of the country.
Housing or commercial real estate, garages or warehouses. In the last few years, all this has been growing in price throughout the country, but especially in the largest cities and popular tourist regions of the country. For example, the already mentioned Balearic Islands, Catalonia, Madrid, the Canary Islands, as a whole along the southern and eastern coasts of Spain.
One of the main factors that leads to an increase in prices is the shortage of free land for the construction of new facilities. A shortage of land leads to a shortage of new construction and, as a consequence, a shortage of supply on the market in general. At the same time, demand, especially foreign, grew month by month. Returning to the Balearic Islands, over the past year warehouses, garages, commercial facilities, industrial and industrial real estate, together with housing, have become the most expensive in Spain, with rare exceptions.
One such exception is Madrid. Thus, the square meter of storage space in the archipelago by the beginning of 2023 was about 1,300 euros. In Madrid, a square meter cost almost 1,380 euros. Nevertheless, Balearic warehouses grew by 24.7% over the year, while the national average is 3.5% growth, as indicated by the yearbook data from the Association of Real Estate Inspectors of Spain. At the opposite end of the rating are La Rioja, Murcia and Extremadura with the lowest prices for warehouses.
In the case of garage spaces, the Balearic Islands reported a price of 1,370 euros per square meter at the beginning of 2023. Ahead is only Baskonia with 1,420 euros per square meter. Once again, the archipelago shows record growth rates: 11% per year compared to 5.8% on average in the country. Jose Miguel Arteta, president of the Association of Real Estate Agents (API) of the Balearic Islands, points out that the situation with garages is directly related to the housing market.
The imbalance between supply and demand, the growth of the local population and the number of visitors, the excess of wealthy foreign demand and much more are pulling residential real estate prices up, leading to an increase in the prices of garages directly related to residential complexes and residential communities in the region.
It is worth noting that the Balearic Islands are still more an anomaly for Spain than the norm. The market in the country is on average quite stable in development, it is subject to structural factors of development rather than speculative, so the growth and fall there is much less dependent on the current conjuncture of the real estate market.