Palma: Townhouse Price Doubled Within Months — €18.5 Million for a House in the City Centre

Townhouse in the heart of Palma: Price explosion within months

Last week, on a windy morning around 9:30, I was standing in a small bakery near the Plaça Major having an espresso when I heard someone say, "That house now costs €18.5 million." Shortly after I found the listing — a renovated townhouse in a quiet side street, exactly where craft and everyday life used to take place.

What the house offers

About the property: five bedrooms, seven bathrooms, a private rooftop terrace with a jacuzzi, a heated swimming pool and a garage for two cars. Additionally, underfloor heating throughout the building, a built-in sound system and modern technology that hardly matches the façade of the old town building. The agency that is offering the house exclusively calls it "exceptional" — and is currently asking around €25,000 per square meter.

Interesting is the history: at the same address there was a basket-weaving workshop for centuries, which according to legend supplied carpets for the cathedral. The name of the house recalls that tradition — a bridge between 16th-century craftsmanship and present-day luxury.

The price: From €9.2 to €18.5 million

In January the house was still on the market for about €9.2 million. Within a few months the asking price has nearly doubled. Why? There are no official explanations. In the café the neighbours speculated: a quick flip by an investor, a strategic re-listing price or simply market psychology — if one sets the pace, others follow.

For the people who live and work here, this has consequences. Small shops and workshops are feeling increasing pressure. Tenants in neighbouring buildings see average per-square-meter prices move up — and wonder whether the old town still has room for ordinary incomes.

What do prospective buyers — and the street — say?

The real estate agency emphasises Palma's advantages: cultural life, the harbour and short distances to cafés and markets. That's true — but it also sounds like advertising when, at 11 a.m. in the bakery, a sales assistant says: "You can feel the neighbourhood changing."

Whether the house will actually sell for €18.5 million remains open. Such luxury listings often stay on the market for a long time — or are renegotiated. One thing is clear: the market seems to decouple in some places, historic fabric becomes a commodity, and prices send signals far beyond a single property.

I will continue to watch the development — and at the next espresso I'll certainly ask again what people think. If you have an opinion or know someone who visited the house: write to me. Such stories often begin right here, on the street, over a coffee and an honest remark about what we lose or gain.