Palma has never had so few homes for sale as it does now. This is according to a report published by the real estate portal Idealista. In this regard, it should be noted that the Balearic Islands Association of Real Estate Agents (API) detected months ago that real estate agencies were closing due to the lack of homes. ‘We are experiencing an unprecedented situation; there has never been a supply crisis before,’ says API president José Miguel Artieda.
Therefore, buying a home in Palma is very difficult, as there has never been so little supply available on the market. This, in turn, is causing prices to skyrocket and fewer and fewer people to be able to purchase property in the Balearic capital.
In the Balearic Islands as a whole, the situation is not as serious, as there are 40% more homes for sale than at their historic low, which was in the first quarter of 2014. However, it is important to bear in mind that those times were also critical for the real estate sector, as the bursting of the bubble in 2008 caused a very serious economic crisis.
In Spain, the disappearance of homes for sale continues to approach the historic low recorded in the first quarter of 2014. Thus, the level of supply recorded in the second quarter of 2025 is only 9% higher than in the winter of 2014, according to Idealista.
However, there are now 35 provincial capitals where buyers are finding less available supply than ever before, including almost all of the major markets, such as Palma, Alicante, Bilbao, San Sebastián, Madrid, Seville, and Valencia.