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Mallorca Property Prices & Market Report 2023-2024

Preise für Immobilien auf Mallorca 2022

Mallorca property prices remain among the highest in Spain and continue to grow yearly, even with increased inflation and the European energy crisis. In this article, you will find all the relevant information on housing prices in Mallorca in 2024 and learn the opinion of experts and predictions from trustworthy analytical companies.

Mallorca Property Prices and Market Overview 2023-2024

CONTENTS
  1. What is the house price of one sq. m in Mallorca 2024?
  2. Current Mallorca property prices by location
  3. How does the inflation situation in Europe affect Mallorca’s real estate market?
  4. What is happening to house prices in Mallorca? Mallorca`s property prices forecast
  5. Which property is in demand and why
  6. Number of property transactions on the Mallorca in 2021-2023
  7. Property Price Outlook for 2024-2025
  8. Who's buying properties in Mallorca?
  9. What types of real estate was bought in Mallorca in 2023
  10. What's happening in Mallorca's secondary housing market
  11. What's happening in Mallorca's new housing market
  12. Rental prices in Mallorca - what's happening on the market

Mallorca is the capital island of the Balearic Archipelago in Spain. It has one of the most attractive markets for buying real estate in Europe and the world. The Balearic Islands and Mallorca are elite resorts with a worldwide reputation. They attract the attention of investors who prefer to put their money in a reliable, steadily growing real estate market with minimal risk. Although it experienced more than one crisis and global convulsions, Mallorca's real estate market still demonstrates armored resilience and positive dynamics of price growth for all types of real estate the island offers.

Working in this field since 2008, the Yes! Mallorca Property agency collects data and studies the cause-and-effect relationships of real estate prices' formation in Mallorca. It allows us to make detailed and high-quality predictions of real estate prices in Mallorca.  

What is the house price of one square meter in Mallorca 2024?

As of January 2024, the average price per square meter in Mallorca stood at €4,083. This represents a significant increase from the beginning of 2022 when it was €3,459, and from the beginning of 2023, when it was €3,706. The average annual price growth in Mallorca is 10.5%, making it the highest increase in real estate prices in Spain.

How the average value of property in Mallorca has changed over the past three years
How the average value of property in Mallorca has changed over the past three years

In comparison, the average price growth in Spain for 2023 was much more modest at 8.1%. As of January 2024, the average cost per square meter of housing in Spain was €2,042.

Factors driving property prices in Mallorca

Then how come Mallorca's real estate steadily increasing in price?

We can say there are two types of reasons — permanent and situational. 

Permanent

Situational

  • 330 sunny days a year;

  • Clean ecology of the islands, without destructive industries;

  • Media's active advertising;

  • Increased security level;

  • The status of an elite resort;

  • Beautiful beaches that meet the highest standards;

  • Artificial increase in the investment attractiveness of the region by the regional government;

  • Celebrities in Mallorca. Nowadays, hundreds of famous people visit the island. People like Morgan Freeman, Nicole Kidman, Conor McGregor, Cristiano Ronaldo, and many others.;

  • International community;

  • Fast and budget flight from anywhere in Europe;

  • Food costs are not high here. Farmers produce many products right on the island.

  • Island's remoteness from the mainland. And as a result, it reduces the risks inherent in the mainland. Mallorca remains a haven for those tired of the constant world upheavals;

  • Mallorca is a sunny place. Even in the conditions of the energy crisis, heating costs are significantly lower here than in many Central European countries;

  • Improved police work on the islands in late 2022 and early 2023. Increasing security measures allows us to remain calm in these difficult times;

  • Introduction of additional measures by the government to reduce the cost of fuel and VAT on food;

  • Procedure for obtaining a residence permit via the "investor's golden visa" program;

  • Demand greatly exceeds supply.



 

Property prices in Mallorca are growing the fastest in Spain 

Regions with the highest property prices in Spain 2023
TOP10 regions with the highest property prices in Spain

The price increase in Mallorca was the highest compared with the rest of Spain throughout 2022. The record +10.5% growth beat the real estate market of Madrid (6.3%), the Canary Islands (+6.7%), and Valencia (+10.4%).

According to the leading portal of real estate sales in Spain, idealista.com, the average price per square meter of housing in Mallorca in January 2023 is 3.706 €/m2.

For comparison, the price of real estate in the Balearic Islands in 2022 averaged 3.459 €/m2.

The growth from January 2022 to January 2023 was 10.5%. 

Autonomy

Price per 1 m2 in January 2022

Price per 1 m2 in January 2023

1 year deviation

Andalucía

1.766 €/m2

1.866 €/m2

+ 5,7 %

Baleares

3.319 €/m2

3.706 €/m2

+ 10,5 %

Canarias

1.952 €/m2

2.083 €/m2

+ 6,7 %

Comunitat Valenciana

1.488 €/m2

1.643 €/m2

+ 10,4 %

Euskadi

2.706 €/m2

2.783 €/m2

+ 2,8 %

Madrid

2.938 €/m2

3.122 €/m2

+ 6,3 %

Melilla

1.840 €/m2

1.874 €/m2

+ 1,8 %

Murcia Región

1.071 €/m2

1.103 €/m2

+ 2,9 %

Navarra

1.491 €/m2

1.562 €/m2

+ 4,8 %

Cantabria

1.478 €/m2

1.505 €/m2

+ 1,8 %

The current price of real estate in Mallorca differs from the price of real estate in mainland Spain. The average cost per square meter in Spain at the time of writing (January 2023) is 1.921 €/m2, and in Mallorca — 3.706 €/m2. It is 48% higher than the average in Spain. Over the past 2022, the difference in these indicators has increased by 7%. Mallorca constantly ranks as one of the most expensive regions by real estate value among all Spanish autonomies. 

Most people believe it is due to the territory's size and other geographical features. 

But this is not true. On the contrary, there is plenty of land and opportunities for construction in Mallorca. Such a big difference in the cost per square meter is due to the favorable investment climate and the reliability of the real estate market of Mallorca itself. And there are always new reasons to buy real estate in Mallorca, considering the growing European crisis. So the difference in cost per square meter in Mallorca relative to mainland Spain is nothing more than an indicator of the reliability of investing in Mallorca’s real estate market. 

Current Mallorca property prices by location 

In Spain's real estate landscape facing pressures in 2023, Mallorca's property market exhibits notable resilience. Despite a rise in interest rates to 4.5%, there is no depreciation; instead, most regions are witnessing steady growth in line with inflation.

The Tinsa Property Index's latest monthly report reveals a 4.3% annual uptick in Spanish property prices until October 2023. Particularly noteworthy is the Balearic Islands, with Mallorca standing out for substantial price increases.


Location

Price per 1 m2 in January 2024

Price per 1 m2 in January 2023

Price per 1 m2 in January 2022

Palma de Mallorca

3.877 €/m2

3.587 €/m2

3.431 €/m2

Santa Ponsa

5.967 €/m2

5.554 €/m2

5.396 €/m2

Andratx

8.687 €/m2

5.279 €/m2

5.263 €/m2

Alcúdia

3.715 €/m2

3.510 €/m2

3.222 €/m2

Felanitx

1.406 €/m2

1.630 €/m2

1.495 €/m2

Llucmajor

3.253 €/m2

3.147 €/m2

2.892 €/m2

Marratxi

3.150 €/m2

2.688 €/m2

2.645 €/m2

El Toro

6.046 €/m2

5.937 €/m2

5.146 €/m2

Palmanova

5.382 €/m2

5.293 €/m2

5.155 €/m2

Cala Vinyes

5.857  €/m2

5.541 €/m2

5.460  €/m2

Sol de Mallorca 

6.515 €/m2

6.489 €/m2

5.801 €/m2

Portals Nous - Bendinat

8.384 €/m2

8.113 €/m2

7.587 €/m2

Calvià

4.976 €/m2

4.576 €/m2

4.284 €/m2

S'Arenal-Son Verí

2.716 €/m2

2.550 €/m2

2.519 €/m2

Son Vida

7.360 €/m2

7.290 €/m2

6.196 €/m2

Valldemossa

3.687 €/m2

3.869 €/m2

3.854 €/m2

Manacor

2.044 €/m2

1.796 €/m2

1.608 €/m2

Sa Ràpita

2.761 €/m2

3.685 €/m2

3.702 €/m2

Binissalem

2.097 €/m2

2.419 €/m2

1.890 €/m2

The data has been prepared on the basis of statistical data from the Spanish property portals idealista and betterplace.

Analyzing this data, it becomes evident that most Mallorca locations maintain positive price growth, signalling sustained interest from property buyers.

Notable growth, ranging from 11% to 19% year-on-year, was observed in key areas such as Palma de Mallorca and El Toro and upscale locations like Port Andratx, Palmanova, and Sol de Mallorca.

In 2023, the most affordable property in Mallorca, priced at €1,497 per square meter, is situated in Sa Pobla. Conversely, the highest-priced properties are in Calvia, Portals Nous - Bendinat at €8,384 per square meter and Costa d'En Blanes at €8,094 per square meter.


How does the inflation situation in Europe affect Mallorca’s real estate market?

The impact of inflation on the Spanish real estate market

According to the Bankinter portal, the consumer price index for 2022 is 7.1% against 6.5% in 2021. The prediction for 2023 is +4.9%. The planned measures to contain the economy should lead to a decrease in this indicator to +2.1% by 2024.

The increase in inflation due to the energy crisis in Europe can slow down the real estate market in Spain. Many experts say the decline in demand for the purchase of Spanish real estate will be up to 15%.

The banking sector can also have a negative effect. The increase in mortgage interest rates is another vulnerable point in the real estate segment. It's fair saying that purchasing power will fall if interest rates exceed ordinary levels.

The Spanish government and individual autonomous regions are carrying out several measures to contain the economy under the unfolding sanctions policy against Russia and the military crisis in Eastern Europe. It also modernizes existing practices introduced during the coronavirus pandemic.

The Spanish government has introduced some popular measures to regulate the economy and keep inflation at a level sufficient to maintain the positive dynamics of the real estate market growth. But despite this, some factors can have a negative impact.

Containment measures

Factors of influence

  • The first reduction in VAT on electricity, July 2021;

  • The first package of measures, April 2022;

  • The second package, July 2022;

  • The "Iberian exception," June 2022, or a reduction in VAT on natural resources. Gas, October 2022.

  • Reduction of VAT on food and essential goods

  • Partial coverage of fuel costs.

  • Containment of interest rates growth on a mortgage.

  • Some of the measures that end on December 31 may get extended. They may also introduce new measures

  • Dynamics of gas and electricity prices. 

  • It is explained by significant changes in recent months.

  • The pressure of the economic crisis on the banking sector.

  • The growing military conflict in Ukraine and eastern Europe 

 

 

 

Europe's sanctions policy towards Russia causes many side effects. The boomerang effect will cause a slowdown in demand in the Spanish real estate market in 2023. The good news is that this will help avoid a bubble in the real estate market in 2023-2024.

The impact of inflation on Mallorca's real estate market

As for Mallorca, the protracted conflict in eastern Europe may also affect the real estate market of the Balearic Islands. But, as usual, contrary to logical reasoning about the decline in demand, expert project Mallorca's real estate market will continue to grow.

Factors of influence: 

Accelerating

Decelerating

  • The geopolitical tension in the region is minimal;

  • Growing popularity among foreign investors;

  • Creating new measures to contain the economy;

  • The beginning of the new season of 2023;

  • The popularity of Mallorca's real estate among wealthy and famous people;

  • The remaining accumulation of funds in the private sector during the pandemic 2020 – 2021.

  • Maintaining the positive dynamics of the growth of real estate in Mallorca. In some regions, the growth exceeds inflation and mortgage rates.

  • A new program for freelancers - the digital nomad visa - can attract many remote workers from Europe and other countries to Mallorca.

  • Mortgage rates rise;

  • Rising inflation;

  • Protracted conflict in Eastern Europe;

  • Euribor value growth.







 

The most direct impact of inflation in Europe was on the market for new buildings. Increased costs of materials, transportation, and so on have increased the cost of new houses for sale in Mallorca. It's now higher than it was in 2020-2021. The increase in prices for new buildings at the end of 2022 was 11%.

The complicated situation in the European real estate market makes people cautious. Hence, in rare cases, one can observe a short-term decline in real estate prices in Mallorca. Experienced investors who understand the stability and reliability factors of Mallorca's real estate market use it skillfully.

In other words, if you are wondering how to save your money in this reality, buying a property in Mallorca is the answer. You can purchase real estate in Mallorca profitably when inflation in Europe slows down the growth rate a little. But this situation will last no more than until mid-February 2023. Next, Mallorca’s real estate prices will, as usual, rise on the eve of the high season.

What is happening to house prices in Mallorca? Mallorca`s property prices forecast

Most real estate experts predicted an increase in prices and the number of sales in the Balearic Islands in 2022. At the same time, most predictions were modest — up to 7%. The reason for this was the fear of new lockdowns associated with the pandemic. But 2022 had a completely different motto. The situation in Ukraine and the European energy crisis have made their adjustments.

While mainland Spain experiences another drop in real estate value, the Balearic Islands demonstrate an increase in the number of transactions by +14.5%. The average cost of 1 m2 in Mallorca in 2022 increased by a record 10.5% (up to 3.706 €/m2).

By the end of 2022, there were 17,616 real estate purchase and sale transactions in the Balearic Islands. According to the predictions of the analytical portal Atlas Real Estate Analytics, in 2023, prices for real estate in Mallorca will retain their positions, despite a possible decrease in the number of transactions.

It becomes possible because, in 2022, the real estate market showed increased demand and, as a result, more real estate transactions. In 2023, experts project that the number of transactions will reach 14,868. This number of transactions is considered ordinary in the real estate market of the Balearic Islands. It can only mean that real estate prices in Mallorca will remain high and show stable growth.

A slightly different prediction gives La Asociación de Agents Inmobiliarios de Baleares. According to them, the value of the real estate in Mallorca will continue to grow in 2023. The growth will be both in sales of real estate and the rent of real estate in Mallorca.

One of the crucial factors that indicate that prices will continue to rise is the result of the sale of real estate in Mallorca in 2022. Namely, 35.10% of all real estate transactions in the Balearic Islands were conducted by foreign buyers. At the same time, the statistics were somewhat blurred since foreigners buy real estate in Mallorca more often than on the other islands of the archipelago.

Among all the Spanish autonomous territories, the Balearic Islands are the most attractive for foreign investors and buyers of real estate. 

The real estate purchases by foreigners in the autonomous territories of Spain

Over the past year, the share of real estate transactions involving foreigners has grown by 4.6% and continues to grow. It is also worth noting that many foreigners buy real estate in Mallorca without a mortgage.

According to the Association of Registrars of the Balearic Islands, sales may decrease in the winter of 2023. The cause for this is the inflationary crisis and uncertainty due to the military conflict in Ukraine. But, starting from March – April 2023, the number of transactions and the value of Mallorca's real estate will increase before the tourist season.

Tip: If you want to buy a property in Mallorca - do not miss this window of opportunity in January-February 2023.


Which property is in demand and why

Earlier, we discussed the crisis's impact on the trends of buyer choice in 2021/2022. Since the end of 2021, consumers are more likely to choose apartments like Planta Baja, which has a garden area, detached houses on the secondary market with a clear potential for reconstruction, and land plots with ready-made projects for construction.

Throughout 2022, the buyers' focus shifted toward other real estate types.

Apartments in new houses in Mallorca have become the most popular for purchase. New buildings in 2022 became the flagship of real estate sales in Mallorca. According to the Yes! Mallorca Property company's assessment, every fourth request for the purchase of real estate in Mallorca falls on a new building. Even the increase in the cost of production has not become a deterrent. The buyer understands that, after commissioning, the new building's cost will exceed its purchasing cost.

One can also note the real estate market segment from 300,000 to 650.000 euros. Real estate in this price range is the most in demand on the market. It is mainly because the buyers of such real estate are foreigners ready to buy real estate in Mallorca without a mortgage.

The third most popular segment is the luxury segment. Expensive villas, fincas, and exclusive apartments in Mallorca traditionally find their buyer. The luxury real estate segment in Mallorca will not go anywhere. Regardless of the state of affairs in the global economy.

 Number of property transactions on the Mallorca in 2021-2023

number of property transaction in Mallorca 2023

The number of real estate transactions in Mallorca in 2022 and early 2023

According to the data published by the General Council of Notaries, the number of transactions for 2020 amounted to 10.684. From the beginning of 2021 to December 2021, the number was 14.146, which is +24.47% for the year.

In 2022, according to the INE property transfer statistics, the number of real estate purchase and sale transactions in the Balearic Islands amounted to 17,616. The increase by 2022 was 19.7%.

According to the prediction for 2023, the number of real estate transactions may decrease to the usual 15,000 per year. At the same time, real estate prices in Mallorca will continue to grow moderately.

Property Price Outlook for 2024-2025

Forecast Overview: The European Central Bank's reluctance to signal a significant reduction in interest rates shortly suggests that Spain's mortgage market will continue to exert constraints on property prices. Various forecasts for 2024 present a nuanced outlook:

• BBVA: Anticipates a 3% increase in property prices, excluding inflation, equating to a 0.6% rise.

• Universitat de Barcelona: Projects a more pronounced price decrease, estimating a 3% decline after adjusting for inflation.

• Bankinter Analysts: Predict a 2% correction in Spanish property prices next year.

• Fotocasa: Citing a stable job market, high demand from financially secure investors and foreign buyers, and limited supply, predicts stable prices. It highlights that average prices still stand 22% below the 2007 peak.

Yes! Mallorca Property Perspective: Considering past market dynamics and current economic trends, Yes! Mallorca Property experts confidently project a continuation of the island's upward trend in property values in 2024. Key insights include:

• Prices are expected to surge in February 2024, mid-April to August 2024, and September to the end of November 2024.

• The remaining periods of 2024 may see Mallorca's housing values stabilizing or showing moderate growth.

Strategic Investment Perspective: In times of global instability, investing in Mallorca real estate is a strategic decision for family financial stability and comfort. To make informed investment choices in the upcoming year, contact Yes! Mallorca Property. Our experience and expertise ensure tailored selections aligned with your needs and goals.

Seizing Opportunities: Explore unique opportunities in the Major property market—connect with us today to secure your future on a solid foundation.

Who's buying properties in Mallorca?


who buys real estate in Mallorca 2023

Residents of which countries bought real estate in Mallorca?

At the end of 2022, Mallorca was worried about the planned ban on selling real estate to foreign citizens. Because of this, in the third quarter of 2022, the number of real estate transactions by foreigners decreased by 3.19%.

At the same time, until October 2022, 31.46% of real estate buyers were foreigners. Hence, approximately every third real estate transaction was with the participation of foreign buyers.

Before the pandemic in 2019, the number of such transactions with foreign buyers amounted to 1,484 people. In 2022, the number of foreign real estate transactions increased to 6,000.

The traditional leaders among foreign buyers of real estate in Mallorca are citizens of Germany and the countries closest to it: Austria, Switzerland, Belgium, and the Netherlands. 41% of foreign buyers are from there.

In second place are British citizens (10%). Despite Brexit, the citizens of the United Kingdom continue to invest in Mallorca's reliable real estate market. Andthe difference in the cost of living makes the life of the British in Mallorca very profitable. Especially in the context of rising energy prices.

In third place are buyers from France (8% of transactions from the total number of foreigners).

In 2022, transactions with buyers from Italy became more frequent (5%).

Citizens of Scandinavian countries were a new phenomenon among foreign buyers in 2022. More and more residents of northern, cold countries prefer to buy real estate in places with warmer climates to reduce energy and fuel costs. The possibility of using solar panels to power the house attracts them. Another reason is the availability of electric cars, which are as popular in Mallorca as fuel-powered cars.

Read more: Is it cheaper to live in Mallorca, Spain, or UK — 2023 prices comparison

What types of real estate was bought in Mallorca in 2022  

What did people buy in Mallorca in 2022? In our review of the 2022 market, we told how, during the COVID restrictions, the focus of attention of Mallorca's real estate buyers changed towards the Planta Baja apartments with a private garden and inexpensive houses with the private territory, costing 250,000- 500,000 euros.

During 2022, the situation has slightly changed. There was a big shortage of supply against the background of growing demand.

The main focus of Mallorca's real estate buyers in 2022 was on new buildings. Apartments and houses in Mallorca in a new building or at the design stage are most popular with investors and foreign buyers who want to keep their savings amid rising inflation.

We have analyzed the sale of real estate in Mallorca for 2022 by types and preferences of buyers.

Apartments. Including Planta Baja, Penthouses and mid-floor apartments

House

Villa

Finca

Land plot

Other types of real estate

% of the total number of transactions

33%

17%

19%

13%

8%

10%

Average transaction value

430.000 €

580.000 €

1.545.000 €

910.000 €

430.000 €

540.000 €

The data is provided based on research by the National Institute of Statistics of Spain (INE)

It is worth noting that 17.5% of the total number of transactions in 2022 were with new buildings. It is a record figure for island real estate, where issuing building permits recently became tedious because of the bureaucracy.

What's happening in Mallorca's secondary housing market 

Secondary housing in Mallorca is experiencing a second birth after the prolonged coronavirus crisis. The resale of properties in Mallorca has always been seen as a separate part of this business. Many investors who invested their money five years ago or more in local properties have made more than 100% profit from their sales.
Secondary housing in Mallorca is experiencing a second birth after the prolonged coronavirus crisis. The resale of properties in Mallorca has always been seen as a separate part of this business. Many investors who invested their money five years ago or more in local properties have made more than 100% profit from their sales. 

In March 2022, the secondary property market has gained so much steam that there has been a noticeable shortage of properties available for sale. Thus, many major agencies focused their advertising campaigns on finding buyers and attracting property owners to Mallorca. 

In view of this situation, the principle is such - the first to pay is the one who buys today. Consequently, the number of enquiries from potential Mallorca property buyers has increased with online viewings and remote transactions. 

There have been several times more such deals in the last 1.5 years. The fear of missing out on a bargain purchase outweighs the fear of losing out on a profitable investment opportunity, given that all the forecasts for Mallorca property prices suggest that they will only go up.

What's happening in Mallorca's new housing market

Compared to previous periods, the number of new housing construction projects in Mallorca has decreased slightly. The reason for this is new restrictions on the size of property construction  – no more than 30% of the land area. The government also introduced regulatory measures for the construction of swimming pools. And restrictions related to the issuance of tourist licenses.

These restrictions have led to increased buyer interest in existing projects. The percentage of transactions with more expensive luxury new buildings has increased. And the average cost of selling new buildings in Mallorca has also increased.

Increase in the cost of new buildings in Mallorca in 2022:

Region

Percentage change

The increase in the cost of 1 m2 in Mallorca’s new buildings

North

+23%

from 3.765  €/m2  to 4.630  €/m2

Northeast

+8%

from 4.467  €/m2  to 4.825  €/m2

Northwest

+6%

from 4.782  €/m2  to 5.068  €/m2

Palma

+10%

from 5.709  €/m2  to 6.278  €/m2

South

+19%

from 3.944  €/m2  to 4.693  €/m2

Southeast

+20%

from 4.852  €/m2  to 5.822  €/m2

Southwest

+9%

from 7.156  €/m2  to 7.789  €/m2

Center

+29%

from 3.259  €/m2  to 4.250  €/m2

Palma region

+39%

from 4.577  €/m2  to 6.362  €/m2

And this is despite restrictions on leasing real estate by the Government of the Balearic Islands.

The Southwest region continues to have the highest new home prices. At the same time, here in this area, the average price of new construction grows more slowly than in other regions.

Palma continues to be the most popular region to purchase a new property. Most of the new projects are concentrated here. For example, in Portixol, a whole area of new residential complexes with luxury apartments is being built.

Rental prices in Mallorca - what's happening on the market 

Alongside the rising prices of buying property in Mallorca, rental prices are rising, both during the holiday period and for longer periods. Owners of coastal locations still do not willingly rent their properties for the long term. This is because seasonal rentals are at least four times the price of long term contracts.

The vast majority of properties on Mallorca are now either entire season or long term lettings. 

According to the real estate portal idealista, the average cost of renting a house in Mallorca is calculated based on the number of square meters. As of January 1, 2023, it is 13.8 €/m2, which is 16.7% higher than the average annual rate for 2022. In March 2022, the average rental price was 11.5 €/m2. This value is higher than the average for mainland Spain by 2.4 €/m2. It is also 2 €/m2 higher than in the Canary Islands.

The analysis of this market segment clearly demonstrates the attractiveness of the Mallorca real estate market, both for static price growth and for the prospect of a passive income from the rental of the acquired property.

Tasalia, a Mallorcan property and asset valuation company founded in 1990 under the chairmanship of Joan Seguí and whose CEO is Octavio Claro, also predicts an increase in island property prices to 22.95% over 2022. That is, a square metre will rise by 771 euros. In other words, although growth will be constant, it is this year, prices will rise above 10%.

The experts of the valuation company Tasalia also give their forecast regarding the most expensive areas in Mallorca. Andratx is the most expensive municipality, at least in March 2022, as the price per square meter is 4803 euros. In 2024 it will be €5,629 after an increase of €826, i.e. 17.21% over three years.Andratx will cease to be the most expensive municipality in 2024 anyway, as that "honour" will fall to Calvia. Today, the housing price is €4,524, but in 2024 it will reach €5,982 after an increase of €1,458 and 32.22%. It is the second municipality in which house prices are rising the most.

Where are the most reliable investments in Mallorca?

Where are properties in Mallorca cheapest to buy? Last year we provided analytical data from the statistical company TASALIA. In the report provided, they gave a prediction for the growth of real estate prices in Mallorca: "In the period from January 2022 to December 2024, the expected values are: the Balearic Islands from 3,052 euros/m2 to 3,823 euros/m2, an increase of 25.25% as a result of an inter-annual increase of 8.42%."

One can note that the inter-annual growth exceeded the planned mark and amounted to 10.5% – a record for the whole of Spain. And the average cost of 1 m2 at the beginning of 2023 in Mallorca was 3.706 €/m2.

Mallorca is also the location of the Balearic Islands' two "cheapest" municipalities. These are Inca and Manacor. There, the cost per 1 square meter is below 2000 euros. According to the real estate portals idealista and fotocasa, prices for studio apartments (from 35 m2) in these municipalities start at around 60,000 €.

Location

Current price per 1 m2

Prediction for 2024

Percentage ratio

Projected cost per 1 m2

Andratx

5.279 €/m2

5.965 €/m2

+ 13%

686 €

Calvià

5.511 €/m2

 6.505 €/m2

+ 18%

994 €

Alcúdia

3.510 €/m2

 4.177 €/m2

+ 19%

667 €

Manacor

1.796 €/m2

1.912 €/m2

+ 6,5%

116 €

Inca

1.552 €/m2

1.602  €/m2

+ 3%

50 €

 

How expensive is real estate in Mallorca?

By far, the most attractive part of the real estate market in Mallorca is the premium segment. The capital island of the Balearic Islands is renowned for its abundance of VIP properties. And among the owners of such real estate are the most famous names from around the world, which each of us has heard more than once. 

Tom Cruise, Paris Hilton, Ditar Bolen, Julio Iglesias, Kimi Raikkonen, Fernando Alonso, Rafael Nadal, Harrison Ford, Pierce Brosnan, Kate Moss, Jamie Oliver, the King and Queen of Spain, Gwyneth Paltrow, Peter Stringfellow, Mike Douglas, Catherine Zeta-Jones, Boris Becker, Juan Miro, Rafael Pereira, Florentino Perez.

These are not the credits of the new super blockbuster on Netflix; they are just a tiny part of the list of the most famous people who have properties in Mallorca.

While most big-name deals in Mallorca don't go unnoticed, many investors prefer to remain anonymous.

Businessman Antonio Catalan, Gabriel Escarrera and tennis player Carlos Moya have properties in Mallorca's exclusive Son Vida area, west of Palma.

Property prices here start at around €4m and go up to €30m+. The living space of such properties ranges from 450sqm to 2500sqm. To quote Gabriela Muñoz, owner of the Engel & Völkers franchise for Son Vida 'when we talk about Son Vida luxury properties, we are talking about really great luxury. 

The buyer profile has changed: "It used to be the elderly, retired people. Now it's young people in their 40s and 45s who have made their money from technology. They are super-rich. In addition to housing, they buy cars, boats, and go to the best restaurants. They spend 15,000 euros over dinner. In their place of origin, they choose discretion and drive a BMW. When they come here, they buy the yellow Ferrari they have always dreamed of".

type of investors focus on luxury real estate in Mallorca 2023

These Mallorca properties are good investment

Mallorca's property market is stable and unique. High demand creates a shortage of good offers. And this is the basis for a steady rise in house prices in the future. 

Mallorca property price forecasts exceed even the wildest expectations.

The answer to the question "Is it worth the money to buy a Mallorca property" is simple yes, it is! It has to be done today, now. Every day of delay equals missing opportunities to benefit from the sale of real estate in Mallorca.

At Yes! Mallorca Property, we recommend you look at Southwest Mallorca. Areas such as:

Santa Ponsa, El Toro, Port Adriano, Cala Vinyes (Cala Viñas), Palmanova, Sol de Mallorca, Port Andatx and Andratx will save your money and increase your investment. Nothing is more rewarding in these uncertain times than having your savings safeguarded. 

Detached houses, villas, apartments with sea views and planta baja apartments have the highest value, and by choosing these properties, you will both profit from the increasing market opportunities and the rental of your property: both short term and long term. For example, renting a villa during the season in these areas is often as high as €15,000 - €25,000 per week. And the price of long-term rentals for 2-bedroom apartments here starts at €2,000. 

Real Estate Specialists of Yes! Mallorca Property always know all the trends in the real estate market of the Balearic Islands. If you want to sell your property, we can help you properly assess it and sell it for the best price. If you want to buy a flat or villa in Mallorca - our professional team will be glad to help you. The catalogue of properties for sale is updated daily. And it's 100% relevant. Our rating on Google is 4.8 stars. We will be happy to help you with buying or selling real estate in Mallorca. Contact us today!

Read about the real estate market in Mallorca in Spanish in the article "Informe de mercado y precios inmobiliarios de Mallorca"

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