According to a recent analysis, the average down payment required for an apartment in Palma is approximately €124,000. This figure is the highest in all of Spain and poses immense challenges for families.

Only in cities such as San Sebastián and Madrid are the requirements similarly high. The average for the Balearic Islands as a whole is approximately €123,000, which is significantly higher than in other provinces such as Málaga or Barcelona.

Savings Rate and Financial Barriers

The study is based on property prices for two-bedroom apartments in the last quarter of 2024 and takes into account the household savings rate, which was 7% of income in 2024. In Spain as a whole, the average savings period for a down payment is 24 years, but in Palma it is almost twice as high.

A spokesperson for a major real estate portal commented: "These figures demonstrate the enormous difficulties families face in purchasing a home. Without sufficient savings, access to mortgage financing is impossible, and the only way to purchase is through inheritance, gifts, or exceptional income."

The Balearic Islands as the most expensive region in Spain

The Balearic Islands not only top the list of provinces where savings are required the longest, but also the most expensive region in terms of the savings required for a down payment. In comparison, Madrid requires 38 years and €86,000, Málaga 44 years and €90,000, and Barcelona 32 years and €95,000.

The report confirms that more than €100,000 in savings is required for a down payment in three Spanish cities: Palma, San Sebastián, and Madrid. Access to homeownership is significantly easier in other cities, such as Jaén, where only 11 years of savings are required and the average down payment is €27,000.

Political and Structural Challenges

Access to homeownership in Palma and the Balearic Islands has become a structural challenge that requires urgent solutions. The real estate market already excludes middle- and low-income families.