October 2026 at a Glance

House Prices and Trends

No free, official monthly price series is published for Palma specifically, so this section uses the national index for Spain as the reference; local asking-price movements typically follow the national direction with a lag of one to two quarters.

The national house price index for Spain rose 12.1% year on year in Q2 2026 and was +3.4% against the previous quarter, according to Eurostat, House price index (prc_hpi_q). A year earlier the annual rate was +12.8%, so growth has held broadly steady over twelve months.

House price index, % change year on yearQ3 2024+8.3%Q4 2024+11.3%Q1 2025+12.3%Q2 2025+12.8%Q3 2025+12.8%Q4 2025+12.9%Q1 2026+12.8%Q2 2026+12.1%

Financing and Interest Rates

The European Central Bank’s policy rate was 2.50% in September 2026 (BIS, Central bank policy rates). That is a rise of 0.25 points from 2.25% the month before. Rates are 0.50 points higher than a year ago, which raises the cost of borrowing and tends to cool price growth with a lag of two to four quarters. The average rate on new mortgages to households in Spain was 3.04% in August 2026 (ECB, Bank interest rates — loans to households for house purchase (MIR)), compared with 2.69% a year earlier.

Palma in the News

• Mallorca property rentals: Palma leads Spain in rental costs: Families paying 45% of their income – Majorca Daily Bulletin (Majorca Daily Bulletin, 18 Aug 2026)
• Schweinsteiger is building a 12 million euro villa in Palma de Mallorca, where he will live with Bulgarian Silva – Слободен печат (Слободен печат, 4 Aug 2026)

Reading the Trend

What to watch next month

• The next quarterly release of the house price index for Spain (Q2 2026 is the latest) — whether annual growth holds near +12.1%.
• Upcoming decisions by the European Central Bank — any move from 2.50% feeds through to mortgage pricing within weeks.

What This Means for Buyers, Sellers and Investors

Sources

• Eurostat, House price index (prc_hpi_q)
• BIS, Central bank policy rates
• ECB, Bank interest rates — loans to households for house purchase (MIR)
• Headlines via Google News RSS; content belongs to the linked publishers.

Previous edition: Palma Real Estate Market Report — September 2026

Cover photo: Kathedrale von Palma by Thomas Wolf, www.foto-tw.de via Wikimedia Commons, CC BY-SA 3.0 de.

Methodology: all figures are taken directly from the free public statistical sources linked above, for the periods stated; official statistics are published with a lag, so the latest available release is used. Commentary is generated from those figures by rule and reviewed before publication. Nothing here is financial advice.