9.1 years of gross salary to pay mortgage in Mallorca
A study by the Fotocasa property and Infojobs websites found that on average it would take 9.1 years of gross salary for someone from the Balearic Islands to pay the mortgage on a house bought in 2020.
This was a little less than the study for 2019, where 9.5 years was the calculation., Although home prices rose 0.3% in 2020. In December, the average price per square meter was 2,039 euros.
Infojobs has established that the average gross salary in the Balearic Islands in 2020 is 24,463 euros – 2039 euros gross for 12 payments. On this basis, it would take 109 months to pay off the mortgage on an 80 square meter property.
Fotocasa’s research director, María Matos, says that “it is always good news” when the effort required to buy a house decreases, because “it means that access to the market becomes easier”. However, the figures indicate that “we are still far from having adequate levels; we have a long way to go”, although the 2020 decline may have been an indicator “that we are heading towards a balance between wages and the cost of housing“.
Mónica Pérez, Communication Director of Infojobs, points out that a 4.9% increase in the average gross salary in 2020 as well as the 5.5% increase in the minimum wage helped to thwart the increase of 1.6 % of the price of second homes. “However, the current crisis situation does not allow us to estimate wages for the rest of the year, taking into account that the main priority is the recovery of the economy. “
The 9.1 years for the Balearic Islands are the the highest in the country, just ahead of Madrid (9.0 years) and the Basque Country (8.9 years). At the other end of the scale, the three regions with the shortest spells are Extremadura and Murcia (both 4.0 years) and Castile-La Mancha (3.9 years). These calculations are based on properties of 80 square meters.