The expected slowdown in home sales is now becoming apparent in the year-to-date numbers
Prices are at all-time highs, but weakening a little at the lower price points
Listed offer inventory (supply) has started to increase again across all price points
Demand, at the right price, continues to remain robust. We expect to see some easing for the coming quarters on the back of higher rates, geo-political uncertainty, and a healthy consolidation after recent strong rises.
The rental market is softening slightly in all short-term, vacation, and longer-term segments, with price sensitivity prevalent but still with a strong undertow of demand.
Construction costs remain firm and delivery times are still problematic, prices are expected to remain firm
New taxes in 2023 increase transaction costs for the higher-price tranches
The local and autonomous Balearic government is now led by the center-right party PP and is considered to be market-friendly.
