The Balearic Islands are no strangers to eye-watering property prices, but the latest figures reveal a particularly surreal twist: square-metre prices for storage rooms and garages in the region are now higher than entire homes in six other autonomous communities.

1,500 euros per square metre — for a garage

According to the 2024 Annual Real Estate Registration Statistics published by the Spanish College of Registrars, a square metre of trastero (storage room) in the Balearics now goes for an average of €1,482. Garages are even costlier: €1,512 per square metre.

That puts humble basement spaces ahead of entire flats in regions like Extremadura (€817/m²), Castilla-La Mancha (€908), Castilla y León (€1,170), Murcia (€1,186), La Rioja (€1,298), and Asturias (€1,352).

In other words, people in those regions can buy a home — with a kitchen, bathroom, and maybe even some charm — for less money per square metre than it takes to stash your toolbox or park your scooter in Palma.

Baleares tops the charts in property price growth

Beyond this quirky stat lies a much more serious trend: the Balearic Islands have now overtaken all other Spanish regions in terms of residential property cost and price growth.

In 2024, property prices in the archipelago skyrocketed by 9.4%, positioning it as the sharpest annual spike nationwide. The result? A typical home now sells for €380,166 — nearly double the national average (€198,407).

Madrid follows closely behind at €339,805, with the Basque Country (€255,998) and Catalonia (€227,611) rounding out the exclusive club where average home prices exceed the national median.

For comparison, €380,000 in the Balearics could buy you:

• 4 flats in Extremadura (avg. €86,838),
• 3 homes in Castilla-La Mancha (€100,555),
• or a small apartment building in Murcia (€116,376).

An overheated market with nowhere to go

The reasons behind this runaway housing market trace back to an imbalance between supply and demand — made more potent by the islands’ unique economic appeal and limited land availability. The registrars warn of continued upward pressure on prices, citing persistent population growth unchecked by corresponding increases in new-build housing.

Crucially, the demand isn’t just coming from local families — but largely from new arrivals. “Foreign immigration has a stronger impact on the housing market, as these are not births joining existing households but adults seeking jobs and residences,” the report explains.

This population boom in turn fuels household formation, which drives demand — and in the Balearics, where horizontal expansion is constrained, that means prices have only one way to go: up.

Supply can’t keep up — and sales are falling

Interestingly, rampant price inflation hasn’t led to more transactions. Quite the opposite. Baleares was one of only two regions in Spain where property sales actually declined in 2024, falling 2.5% year-on-year to 13,847 registered deals. (The other was the Canary Islands, down 1.2%.)

Every other autonomous community saw housing sales increase last year.

This suggests that even in a climate of demand, soaring prices and dwindling affordability are suppressing actual transactions. The dream of owning a home on the islands, for many, seems increasingly out of reach.

Rental pressures add more fuel to the fire

Compounding the issue, the report points to dysfunction in the rental market. While logically rentals should absorb excess demand when ownership becomes unaffordable, inefficiencies in the rental sector — including short-term tourism lets and regulatory uncertainty — are putting further strain on an already tight market.

A British entrepreneur with a taste for luxury and discretion is reportedly behind the most expensive property currently for sale in Spain — a palatial villa in Marbella’s exclusive Sierra Blanca enclave, priced at a staggering €70 million.

Villa Bellagio, the 5,500 sqm mansion set on a 14,000 sqm plot, is a luxury fortress. With 12 opulent suites — eight of them 50 sqm each — and a bottom floor that reads more like a wellness resort than a basement, the property aims to tick every box on an ultra-high-net-worth buyer’s wishlist.

The lower level includes a private spa, heated indoor pool, Turkish bath, Finnish sauna, massage room, professional hair and beauty salon, and a state-of-the-art gym. Upstairs, entertainment reigns supreme: a full-sized bowling alley, billiards room with bar, private cinema for 22 guests, and even a climate-controlled garage fit for an automotive art collection — plus space for 30 more vehicles underground.

“It’s designed for unrestricted enjoyment,” says the listing from Engel & Völkers Marbella, the agency handling the sale.

A low-profile owner with a high-profile circle

Despite commanding attention with this headline-grabbing sale, the mansion’s current owner, Joe Ricotta, is not a household name in Spain. A British businessman once at the helm of PCL Transport 24/7 Ltd, a refrigerated logistics company, Ricotta sold the firm to South African powerhouse Bidvest in 2015 in a deal estimated at around £45 million (€52.5 million). Afterwards, he diversified into property, including in Marbella, where he’s kept a relatively low profile, all according to Spanish press reports.

Though he moves largely under the radar, Ricotta is said to be a Tottenham Hotspur fan and is connected with Hollywood royalty, regularly hosting the likes of Robert De Niro, a business partner on the Costa del Sol with interests in hospitality. His London-based Italian restaurant, Nonna’s Kitchen, has welcomed silver-screen legends including Al Pacino, John Travolta, Sylvester Stallone, and Arnold Schwarzenegger.

From trucks to trophy homes

Following his logistics windfall, Ricotta turned his attention to luxury real estate, founding a Marbella-based agency catering to international elite buyers. Recent sales include a €12.5 million, eight-bedroom villa and a €5 million plot in Sierra Blanca with planning permission — the same ultra-exclusive neighbourhood as Villa Bellagio.

Ricotta’s business strategy is centred on discretion. His company works exclusively with vetted international agents and promotes itself as a “private consultant” serving high-net-worth individuals who demand privacy. “One of the many advantages we offer is the protection of your privacy. When using our services, your plans to buy property in Marbella will not be made public,” the firm insists on its website.

The market for ultra-luxury in Marbella

Whether Villa Bellagio finds a buyer at the asking price remains to be seen. While record-setting listings make headlines, closings often come in under asking — sometimes well under. Nevertheless, demand for top-end properties in Marbella’s trophy locations has held up remarkably well among investors from Europe, the Middle East, and beyond.

In the post-pandemic period, the Costa del Sol — and Marbella in particular — has re-emerged as a global magnet for wealth, thanks to a winning blend of tax-friendly policies, year-round sunshine, and high-end amenities. Sierra Blanca, often referred to as Marbella’s version of Beverley Hills, continues to attract figures like Ricotta who seek a blend of lifestyle, seclusion, and investment value.