Overview of Mallorca’s Real Estate Prices and Market in 2024 – 2025

Normally, I don't write a new article about the real estate market in Mallorca every year. Most often, I simply update my previous article by adding the latest data, fresh analysis, conclusions, and expert opinions.
However, the way the real estate market in Mallorca has changed over the last few years, particularly in 2024, has prompted me to take the time to write a new article that fully reflects the current realities.

Table of Contents

Introduction
Number of Real Estate Transactions in Mallorca
Current Overview of Property Prices in Mallorca by Location
The Impact of the Global Economy on the Mallorca Real Estate Market
Which Properties in Mallorca Are the Most In-Demand and Why
Who is Buying Property in Mallorca in 2024-2025
What Will Property in Mallorca Cost in 2025?
100% Tax on Property Purchases by Foreigners: What Does It Mean?
What’s Happening on Mallorca's Secondary Property Market
What’s Happening on the New Build Property Market in Mallorca
Rental Prices in Mallorca — What’s Happening on the Market
Where Is Property the Cheapest in Mallorca?
Luxury Real Estate in Mallorca
Conclusions of the Article


In this article, you will learn how the real estate market has changed in 2024. Has the number of property purchases in Mallorca increased or decreased? How much does property cost in Mallorca, and what factors influence the price? You'll also find statistics on property ownership transfers in the Balearic Islands, expert opinions, and forecasts for the near future.

Introduction

Articles like this typically begin with a brief description of Mallorca. Most people write something like: "Mallorca is an elite resort and the capital island of the Balearic Islands." And let's not forget to mention that the Mallorca real estate market is considered one of the most reliable and steadily growing in Spain, if not all of Europe.

Property in Mallorca is highly regarded. Many celebrities and wealthy individuals purchase property in Mallorca.

But let’s throw out these stereotypes and look at the Mallorca real estate market from a different angle.


Mallorca from a Different Angle

First off, I will say right away that Mallorca is indeed a paradise with an abundance of benefits. The price of property is rising here every month. There is no shortage of people wanting to buy property in Mallorca. In previous years, properties on the island were selling faster than they could hit the market.

However, 2024 has brought significant changes. The number of real estate transactions has decreased, but the price of properties for sale in Mallorca has risen substantially.

Number of Real Estate Transactions in Mallorca

Month	January	February	March	April	May	June	July	August	September	October	November	December
2024	1203	1098	866	1216	1126	1057	1191	987	1281	1395	1168	1054
2023	1347	1224	1419	1003	1401	1282	1221	1032	1081	1013	1221	937
2022	1406	1423	1937	1247	1691	1499	1386	1573	1485	1443	1469	1254

Data taken from the National Statistics Institute website.

• In 2024, there were 13,624 property ownership transfers in the Balearic Islands.
• During the same period in 2023, the number of transactions was 14,161, which is 4% higher than in 2024.
• In 2022, the number of property transactions in Mallorca for the same period was 17,813, which is 23,5% higher than in 2024.

We are particularly interested in 2022, which marked a real boom in Mallorca's real estate market. This was due to the end of COVID-19 restrictions and the accumulated savings of foreign buyers. Additionally, mortgage rates were low in 2022.

In other words, in 2022, virtually any property in Mallorca was selling, and almost any price was acceptable. This situation led to a number of consequences:

• The number of newly constructed properties increased, and these were brought to the market at higher prices.
• Property owners started raising prices for their properties, often without considering the condition of the property, justifying it by saying, "My neighbor sold for a million, so I want 1.2 million euros."
• During negotiations, many owners refused to offer even a small discount.
• Magazines, newspapers, real estate agencies, and construction companies were all releasing articles about how profitable it was to invest in Mallorca property, further strengthening the idea among owners that prices should be increased.

Current Overview of Property Prices in Mallorca by Location

According to the real estate portal idealista.com, the average price per square meter of housing in the Balearic Islands in December 2024 stands at €4,707/m². In comparison, the average price of real estate in Mallorca in December 2023 was €4,083/m².

The annual growth from January 2023 to January 2024 was 13.2%. This is a very high value, even by Mallorca's standards. For example, in 2022, the growth was only 10%.

Location	Price per square meter December 2024	Deviation compared to 2023 (+ / - %)	Price per square meter 2022
Palma de Mallorca	€4,442/m²	+12.7%	€3,092/m²
Santa Ponsa	€6,517/m²	+8%	€4,732/m²
Port Andratx	€8,991/m²	+4%	€7,398/m²
Alcúdia	€4,273/m²	+13%	€3,097/m²
Felanitx	€1,965/m²	+8.1%	€1,181/m²
Llucmajor	€3,778/m²	+14%	€2,726/m²
Marratxí	€3,454/m²	+8.8%	€2,379/m²
El Toro	€6,550/m²	+8.9%	€3,939/m²
Palmanova	€5,544/m²	+3%	€4,202/m²
Cala Vinyes	€6,224/m²	+6%	€5,142/m²
Sol de Mallorca	€6,460/m²	-0.8%	€5,156/m²
Portals Nous - Bendinat	€8,412/m²	+0.3%	€5,833/m²
Calvià	€5,538/m²	+10%	€4,016/m²
S'Arenal-Son Verí	€3,664/m²	+25.9%	€2,413/m²
Son Vida	€8,229/m²	+10.5%	€5,808/m²
Valldemossa	€3,887/m²	+5%	€3,998/m²
Manacor	€2,931/m²	+30.2%	€1,648/m²
Sa Ràpita	€5,308/m²	+9.7%	€3,702/m²
Binissalem	€2,462/m²	+7.4%	€1,935/m²

    

The table clearly shows that property prices in Mallorca continue to rise despite the overall decrease in real estate transactions.

If you have been following the real estate market in Mallorca for a while and are familiar with the local locations, you’ve probably noticed areas like Alcúdia (+13%), S'Arenal-Son Verí (+25%), and Manacor (+30%). In my previous articles, I predicted an increase in property prices in these locations. The reason is simple: many people simply can’t afford properties in more expensive and well-advertised areas. Therefore, interest in places where the price per square meter was lower has justifiably increased. And with that, prices have risen.

In other traditionally popular locations for property purchases in Mallorca, there has also been a price increase. This is partly a consequence of the events I described in my 2022 articles. And partly, it's due to the significant changes in the real estate market that took place in 2023–2024.

The Impact of the Global Economy on the Mallorca Real Estate Market

I have already written about the inflation situation in Europe and how it affects the real estate market in Mallorca. For those interested, you can read more here: Mallorca Property Prices & Market Report 2023-2024

So, we won’t dwell on this, and we’ll move straight to the main topic. We all know how the Euribor rate has been “storming.” As a result, mortgage rates have increased significantly, from 0.8%-1% to 4%-5.5%.

As a consequence, people who had dreamed of buying property in Mallorca with a mortgage, with an average cost of €400,000 to €700,000, began to doubt the feasibility of such an investment. On top of that, there was a spike in prices and owners unwilling to lower their prices.

In fact, people literally couldn’t afford even the down payment on a mortgage.

As is well known, the majority of foreign property buyers in Mallorca are traditionally Germans. Recently, a client of ours, who bought a villa from us a few years ago, came to our office. She is from Germany. We got talking, and during the conversation, she said something along the lines of: “Germans are going through tough times right now; they only have money for food and travel. They are thinking less and less about serious purchases.”
I’m not sure if that’s the case, but this is a sentiment circulating among the German population.

As a result, the sector of the real estate market in Mallorca under €1,000,000 has significantly declined.

Which Properties in Mallorca Are the Most In-Demand and Why

2024 has changed a lot, including the types of properties that are currently in the highest demand in Mallorca.

In previous years, I mentioned that the most sought-after sector was properties priced between €300,000 and €650,000. That is no longer the case today.

In 2024, we are seeing a surge in demand for high-end properties in Mallorca. Luxury real estate has become the most sought-after. Expensive villas starting at €2.5 million, De-luxe apartments from €1 million, and country estates starting at €2 million or more.


Luxury Real Estate in Mallorca

Moreover, the trend is such that the more expensive the property in Mallorca, the easier it has become to sell.

The key trends include interest in luxury properties priced from €1.5 million, eco-friendly homes, and properties with high investment returns.

As a result, many real estate agencies have simply stopped working with properties priced below €1 million.

This shift hasn’t gone unnoticed. Property owners have started raising the prices of their homes, sometimes to absurd levels.

The market now has one-bedroom apartments priced over €1 million, and dilapidated abandoned houses listed for €2 million or €3 million. The market is flooded with offerings that do not meet the price-quality ratio.

Therefore, if you are looking for high-end property in Mallorca, it is important to choose a reliable and well-established real estate agency, where they won’t offer questionable options just to make a sale.

Who is Buying Property in Mallorca in 2024-2025

The Mallorca real estate market in 2024-2025 remains attractive to various categories of buyers, particularly European investors, digital nomads, and wealthy expatriates.

1. Foreign Investors

• Germany, the UK, France, and Scandinavia remain traditional leaders among property buyers. They view Mallorca as a destination for vacations, long-term living, and investments.
• Swiss and Austrian investors are increasing their presence in the market due to a stable economy and high income levels.
• Interest from Americans and Canadians has risen since the pandemic, particularly among digital nomads and retirees.
• Investors from the UAE and the Middle East represent a growing segment, particularly in the luxury real estate market.

2. Expats and Digital Nomads

• The rise of remote work has increased the demand for housing among freelancers, IT specialists, and entrepreneurs.
• Key requirements include: stable internet, convenient infrastructure, international schools, and access to nature.
• Popular areas: Santa Catalina, Son Vida, Port de Soller, Alcudia.

For more information on this topic, see our article: Living the Dream: A Digital Nomad's Guide to Mallorca

3. Retirees and Early Expats

• The main buyers are Germans, Brits, French, and Swiss.
• They tend to choose villas and apartments with sea views, good medical infrastructure, and a comfortable climate.
• Popular locations: Palma, Bendinat, Port de Pollensa, Port d'Andratx.

For more on this topic, see our article: Living in Majorca as a Retiree: What to Expect

4. Investors and Developers

• High demand for both short-term and long-term rentals is encouraging investors to buy apartments and townhouses for rental purposes.

What all of these groups have in common is that they are affluent individuals ready to purchase luxury properties in Mallorca, either without a mortgage or with a mortgage that doesn’t strain their budget.

What Will Property in Mallorca Cost in 2025?

The Mallorca real estate market continues to evolve under the influence of various factors—economic, political, infrastructural, and social. To provide an accurate forecast for property prices in 2025, let’s examine the main trends and key indicators.

How Did Property Prices Change in 2024?

In 2024, the Mallorca real estate market saw a 15-20% decline in the number of transactions, but prices continued to rise by 8-12%. This can be explained by several factors:

• High demand from foreign buyers (especially from Germany, the UK, and Scandinavian countries).
• Limited supply—new projects are being launched slowly due to bureaucratic challenges.
• Rising construction costs—materials and labor are becoming more expensive, which increases the cost of new properties.
• Popularity of rentals—investors are keen to buy properties for renting out, which drives up demand for liquid properties

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Forecast for Property Prices in Mallorca in 2025

According to expert estimates, the market will stabilize in 2025, but prices will continue to rise, albeit at a slower pace. The predicted increase in prices is 5-7% on average across the island.

• Premium segment (Palma Old Town, Son Vida, Puerto Andratx, Bendinat) – prices will rise by 7-10%, as luxury real estate remains in high demand among wealthy buyers.
• Mid-range segment (Santa Ponsa, Palmanova, Alcudia) – expected growth of 5-6%, as these areas remain popular with expats and investors.
• Eastern coast and rural areas – prices will stabilize, but moderate growth of 3-5% is possible, particularly in Manacor and Artà.

Factors Influencing Prices in 2025

• Continued migration of wealthy foreigners – the influx of buyers from Northern Europe remains strong.
• Rising mortgage rates in Europe – this may reduce the activity of local buyers but will not impact the premium segment.
• New laws and taxes – possible rental restrictions may slow down price growth in certain areas.
• Housing shortage – supply remains limited, which supports property prices.

Is It Worth Buying Property in Mallorca in 2025?

• For investors: The purchase remains profitable, especially in the premium segment and areas with high rental yields.
• For living: Prices will continue to rise, so buying now is a sensible decision for those planning long-term residency.
• Conclusion: Property in Mallorca will become more expensive in 2025, but the pace of growth will slow down. If you're planning to buy, it's better to do it sooner before prices increase even further.

100% Tax on Property Purchases by Foreigners: What Does It Mean?

Amid rapid increases in property prices and a housing affordability crisis for local residents, Spain has begun discussions on a radical 100% tax on property purchases by foreigners. This means that foreign buyers would be required to pay an additional amount equal to the cost of the property, effectively doubling the purchase costs.

Why Is This Tax Being Discussed?

• In high-demand regions (Balearic Islands, Catalonia, Canary Islands), it’s becoming increasingly difficult for locals to afford housing.
• Foreign buyers are purchasing up to 30-40% of all properties, pushing prices higher.
• The authorities aim to slow this process and prioritize local residents.

Where Could the Tax Be Introduced? Currently, the idea is being discussed for the Balearic Islands (Mallorca, Ibiza, Menorca), Canary Islands, and Catalonia. However, its adoption would require approval at the national level.

Will This Law Be Passed? Currently, the likelihood of such a tax being introduced is low because:

• The Balearic Islands’ economy heavily depends on foreign investments.
• This tax could lead to capital outflow and a collapse of the real estate market.
• The Spanish government has not shown strong support for this initiative.

Conclusion: For now, this tax is still in the discussion stage, but the mere fact that it is being considered is already putting pressure on the market.

Forecast for 2025 Depends Heavily on the Decision Regarding the Foreign Purchase Tax. Let’s Consider Two Scenarios:

Scenario 1: No Tax Is Introduced (Base Forecast) If the tax remains at the current rates, the market will continue to grow, but at a slower pace:

• Premium Segment (Palma Old Town, Son Vida, Puerto Andratx, Bendinat) – growth of 7-10%
• Mid-range Segment (Santa Ponsa, Palmanova, Alcudia) – growth of 5-6%
• Eastern Coast and Rural Areas – growth of 3-5%

Scenario 2: Tax Is Introduced (100% on Foreign Purchases) If the law comes into effect, it will cause a sharp decline in demand from foreign investors. In this case, we could see:

• A 10-15% price drop in premium areas – buyers from Germany, the UK, and Scandinavia will exit the market.
• A slowdown in sales on the secondary market – investors will no longer be able to resell properties to foreigners.
• An increase in rental demand – those wanting to live in Mallorca will look for alternatives to buying.

This scenario is currently unlikely, as the Spanish government understands the importance of foreign capital for the economy. However, the discussion itself is already putting pressure on the market.

What’s Happening on Mallorca's Secondary Property Market

The secondary property market in Mallorca underwent significant changes in 2024. The most notable shift has been an increased interest in high-end properties, but with a strong emphasis on quality.

Properties sold for upwards of 1.5 million euros are now typically expected to have undergone renovations, be located by the sea, or offer stunning panoramic views of the surrounding area.

It’s also worth mentioning that a number of property owners, recognizing the drop in demand, began lowering their prices. According to data from Yes! Mallorca Property, approximately 15-17% of properties on the secondary market were listed for sale at reduced prices during the first half of 2024.

However, it’s important to note that the price reductions on Mallorca’s secondary market have not been widespread. Moreover, a reduction in price does not guarantee a lower cost for the property.

Another trend is that some property owners have decided to take their properties off the market. They are opting to earn rental income and are also hoping for further price increases to sell their property at a higher value in the future.

What’s Happening on the New Build Property Market in Mallorca

New Build Property in Mallorca for Sale

The year 2022 not only sparked an increase in property prices in Mallorca, but also became a turning point for the widespread construction of luxury real estate on the island. Many construction companies have focused on building expensive, modern villas in prestigious areas of the island. Prices for these villas start at 2.5 million euros and can reach 10 million euros or more.

The most popular areas traditionally remain in the southwest, such as:

• Cala Viñes
• Santa Ponsa
• El Toro
• Puerto de Andratx
• Son Vida
• Calvia

We are also witnessing an increase in new properties in the south of the island:

• Badia Blava
• Puig de Ros
• Sa Rapita
• Badia Grande
• Llucmajor
• Sa Torre

The southern part of Mallorca is becoming increasingly popular among property buyers. This trend not only leads to a rise in the number of new builds, but also to an increase in property prices.

Luxury, high-end new builds in Mallorca traditionally sell better and faster. These new properties, with high energy ratings, stylish designs, modern systems, and warranties, attract the attention of affluent individuals looking to buy property in Mallorca.

Rental Prices in Mallorca — What’s Happening on the Market

The rental market in Mallorca is also experiencing price increases. In 2024, the average rental rate rose by 13% compared to the previous year. The average cost of renting property in Mallorca increased from €16.1/m² to €18.5/m². The main demand is for long-term rentals of luxury properties in tourist areas and apartments in Palma.

Where Are the Most Reliable Investments in Mallorca?

The most stable and profitable investments in Mallorca remain:

• Luxury properties in the southwest of Mallorca
• Apartments in Palma
• New buildings in the southern region of Mallorca
• Country houses (fincas) in the central areas of the island

These properties continue to be in demand even during periods of economic instability, providing owners with high returns from rental income or subsequent resale.

Where Is Property the Cheapest in Mallorca?

The housing issue in Mallorca is pressing, as property prices are rising without proper regulation. This forces island residents to search for more affordable areas to buy property. According to the Fotocasa index, the lowest property prices are recorded in cities like Inca, where the average cost per square meter is €2,020. Following that are Manacor with €2,182/m², Felanitx with €2,547/m², and Son Servera with €2,944/m².

For comparison, in more expensive towns like Andratx, the price per square meter reaches €6,672, while in Calvià, it is €6,014. Thus, purchasing an 80 m² apartment in Andratx will cost on average 3-4 times more than a similar property in Inca.

Luxury Real Estate in Mallorca

Luxury, exclusive, expensive real estate is currently one of the most sought-after commodities in Mallorca. This segment has become the most in-demand, capturing the attention of investors, real estate agencies, buyers, sellers, and all those involved in real estate in Mallorca.

Let’s explore what “luxury real estate in Mallorca” actually means.

To begin with, it's important to note that property prices in Mallorca are relatively high. Because of this, many properties that might initially seem expensive are not necessarily considered luxury.

For example, an apartment with two bedrooms in a questionable location and no recent renovation will not be considered luxury, even if the owner wants to sell it for 700,000 euros or more.

Criteria for Choosing Luxury Apartments in Mallorca:

Location:

• Prestigious areas such as Puerto Portals, Sóller, Palma, Cala Mayor, and other high-end locations.
• Close to beaches, golf courses, or with sea views.
• Good transport accessibility, proximity to cultural, entertainment, and shopping centers.

Size and Layout:

• Spacious apartments with living areas ranging from 100 to 300+ m² and beyond.
• Modern and functional layouts with many rooms, including several bedrooms, bathrooms, large living rooms, and kitchens.
• Often include terraces, balconies, private gardens, or even pools.

Design and Finishing:

• High-quality finishing materials: marble, natural wood, elite types of glass and metal.
• Modern and elegant interiors, often with designer elements, minimalist and refined styles.
• Modern technologies: smart home systems, integration with temperature, lighting, and security control systems.

Amenities and Infrastructure:

• Private pools, spa areas, saunas, fitness centers.
• Security systems, video surveillance, service staff.
• Parking spaces, sometimes with charging stations for electric vehicles.
• Multi-functional spaces for work, relaxation, and entertainment.

Sustainability:

• Energy-efficient technologies such as solar panels, low-energy heating and cooling systems.
• Water recycling systems, eco-friendly building materials.

Privacy and Security:

• Enhanced security, often with private entrances, restricted access for outsiders.
• Spacious plots with green areas, gated properties.

Investment and Uniqueness:

• High investment potential and potential for appreciation.
• Unique architectural solutions or historical significance of the property.

As a result, the cost of such apartments will reflect this, starting from 700,000 – 800,000 euros. The maximum price for luxury apartments in Mallorca can reach 4 million euros.

Real Estate in Mallorca for Investment: The Most Liquid Properties in 2025

In 2025, the Mallorca real estate market remains attractive to investors, despite economic fluctuations and changes in legislation. Let's look at the most liquid types of real estate that offer high returns and fast payback.

1. Rental Apartments in Palma

Why is it profitable?

• High demand for rentals from expatriates, digital nomads, and tourists.
• Average rental yield: 5-7% per year.
• Opportunity for short-term rentals in tourist areas.

Area	Average Price per m² (2025)	Rental Yield
Santa Catalina	€6,500/m²	6.2%
Portixol	€6,700/m²	5.8%
El Terreno	€5,800/m²	6.5%

Tip: Apartments with a terrace or sea view are rented for higher prices and find tenants faster.

  2. Villas in the Southwest of the Island

Why is it profitable?

• High demand from premium buyers in Germany and Scandinavian countries.
• Properties are often bought with the intention to resell in 3-5 years for a markup.
• Average price growth in this segment: 5-10% per year.

Area	Average Price per m² (2025)	Price Growth over 3 Years
Andratx	€9,000/m²	+18%
Santa Ponsa	€8,200/m²	+15%
Bendinat	€10,500/m²	+20%

Tip: The best investment villas are modern homes with energy-saving technologies and a swimming pool.

3. Boutique Hotels and Hotels

Why is it profitable?

• Growth in tourist flow increases hotel occupancy.
• Average payback period for the hotel business: 7-10 years.
• Increased demand for sustainable hotels with an eco-friendly concept.

Property Type	Average Price per Room	Occupancy (2025)
Boutique Hotels	€180,000	82%
Mid-Range Hotels	€140,000	75%

Tip: Mini-hotels in Palma and rural agroturismo (country estates) with organic products are popular.
[Link to our article on this topic: Experience Mallorca Sustainably: Eco and Agri Tourism Guide 2024

4. Land for Development

  Why is it profitable?

• In 2025, land supply is limited, which increases its value.
• High profit margins for building custom villas.

Location	Average Price per 100m²	Price Growth over 3 Years
Son Vida	€250,000	+22%
Calvià	€180,000	+18%
Llucmajor	€100,000	+12%

Tip: The best investments are purchasing land with an already approved development project.

Conclusion
In 2025, the most liquid real estate investments in Mallorca remain:
✅ Rental apartments in Palma (Santa Catalina, Portixol).
✅ Villas in premium areas (Andratx, Santa Ponsa).
✅ Boutique hotels focused on eco-tourism.
✅ Land with development projects.

A smart choice of property, taking into account location and market trends, will help investors achieve stable income and maximum payback.

Conclusions of the Article

The Mallorca real estate market continues to grow, despite a decrease in the number of transactions. In 2024, demand has focused on the premium segment – properties priced at €1.5 million or more are selling faster than more affordable ones.

Property prices have increased by an average of 8-12%, with certain locations, such as Manacor and S'Arenal-Son Verí, experiencing price growth of 25-30%. The main drivers have been limited supply, rising construction costs, and strong interest from foreign investors.

The main buyers are affluent foreigners, particularly Germans, British, and Scandinavians. Additionally, investors from the UAE, the US, and Canada are actively participating in the market.

Forecast for 2025: A moderate price increase of 5-7%. In the premium segment, prices may rise by 7-10%, and in the mid-range segment, by 5-6%. The main factor is the continuing strong demand for luxury properties and the limited availability of new developments.

Investment-Attractive Properties: Luxury villas in the southwestern part of the island, income-generating apartments in Palma, boutique hotels, and land plots for development. The expected investment return is 5-7% annually.

Risks: The proposed 100% property purchase tax for foreigners. While the likelihood of its introduction is low, the mere discussion of it is already influencing the market.

If you are considering purchasing property in Mallorca, now is the best time to make a decision. Despite the price increase, premium properties remain a reliable investment with high liquidity.

Why Choose Yes! Mallorca Property?

• Over 10 years of experience in the Mallorca real estate market
• Expert analysis and access to exclusive properties
• Personalized property selection in the best locations
• Full transaction support – from search to paperwork

Don’t miss the opportunity to purchase your ideal property in Mallorca! Contact us today, and we will help you find the best option.