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Mallorca Property Prices & Market Report 2022

Mallorca property prices remain among the highest in Spain and continue to rise year on year, even despite the effects of Covid-19. In this article, you will find all the latest information on property prices in Mallorca, an expert opinion and a forecast for the future.

Preise für Immobilien auf Mallorca 2022

Mallorca Property Prices and Market Overview 2022


CONTENTS
  1. What is the house price of one sq. m in Mallorca 2022?
  2. Current Mallorca property prices by location
  3. Mallorca property prices: How Coronavirus changed the market
  4. What influences the property prices in Mallorca? Mallorca property prices forecast
  5. Which property is in demand and why
  6. Number of property transactions on the Mallorca in 2021 and early 2022
  7. What types of real estate was bought in Mallorca in 2021
  8. What's happening in Mallorca's secondary housing market
  9. What's happening in Mallorca's new housing market
  10. Rental prices in Mallorca - what's happening on the market

Mallorca is the capital island of the Balearic Islands in Spain and has one of the most attractive property markets both in Europe and the world. The Balearic Islands and Mallorca in particular are world-renowned luxury resorts attracting investors who prefer to invest in a secure, stable, growing property market with minimal risk to their investment. Having survived more than one crisis and global upheaval, Mallorca's property market is steadily demonstrating an armoured resilience and positive price growth for all property types on the island. 

What is the house price of one sq. m in Mallorca 2022?


Property prices continue to rise, +1.0% since the beginning of the year. It happens due to many factors: 
  • the removal of most of the restrictive measures of Covid-19; 
  • a sharp increase in interest from investors wishing to obtain a golden investor visa 
  • artificial increase of investment attractiveness of the region by the government of the autonomy: cheap loans with a simplified system of obtaining
  • the attraction of celebrities and world celebrities
  • active advertising in media, a higher level of security,
  • Absence of ecological problems, common to the mainland
  • the appeal of beaches with the highest international standards and quality of recreation

the-average-value-of-property.jpg

Spain's leading property sales portal idealista.com estimates the average price per square metre in Mallorca in March 2022 to be €3.351/m2. 

In comparison, the property price in Mallorca in 2021 was on average  3.113 €/m2. 

The increase between March 2021 and March 2021 is 7.1%. 

And despite the coronavirus situation, in March 2020 the average price per square metre for housing in Mallorca also showed an increase compared to previous periods and was 3.075 €/m2. 

The increase between March 2020 and March 2021 was 1.2%. 

Property Prices in Mallorca 2022

Given the state of the global economy, such growth seemed improbable. While the myriad of resorts and global property markets were counting losses, Mallorca property prices continued to rise, and housing continued to be in demand even in the complete lockdown. 

During the pandemic, more than 54% of transactions at "Yes! Mallorca Property" were conducted online. The average cheque was €650,000.  It means not only the confidence of Mallorca property buyers in the agency, but also the healthy desire of people to save money by making a sound investment in the stable Mallorca property market.

The current Mallorca property prices vary drastically from those on the Spanish mainland. The average price per square metre in Spain at the time of writing (March 2022) is 1.814 €/m2, in Mallorca - 3.351 €/m2, which is 41% higher than the Spanish average. Mallorca traditionally ranks among the most expensive regions, second only to Madrid, Barcelona and the Basque Country. 

TOP 10 regions of Spain With the highest prices per square meter

Most amateur experts are inclined to say that limited territory and other geographical attributes are to blame.

But this is not the case - Mallorca has plenty of land and construction opportunities. The difference in the price per square metre is more likely to be accounted for by the favourable investment climate and the robustness of the Mallorca property market itself. So the difference in cost per square metre in Mallorca relative to mainland Spain indicates the reliability of the Mallorca property market investment. 

Current Mallorca property prices by location 

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

Location

Price for sq.m 

for the whole 2021

 Deviation from 2020 

(+/- %)

Price per sq.m 

in march 2022

Palma de Mallorca

3.056 €/m2

+ 2,35%

3.211 €/m2

Santa Ponsa

4.494 €/m2

+ 5,4% 

4.855 €/m2

Andratx

4.825 €/m2

+ 8%

5.230 €/m2

Alcúdia

2.831 €/m2

+ 1%

3.129 €/m2

Felanitx

1.350 €/m2

+ 6,5% 

1.679 €/m2

Llucmajor

2.630 €/m2

+ 8,3%

2.744 €/m2

Marratxi

2.329 €/m2

+ 4,8%

2.379 €/m2

El Toro

3.793 €/m2

+ 1,4%

4.135 €/m2

Palmanova

3.860 €/m2

+ 8,5%

4.474 €/m2

Cala Vinyes

4.596  €/m2

+ 16%

5.181 €/m2

Sol de Mallorca 

5.025 €/m2

-0,3%

5.100 €/m2

Portals Nous - Bendinat

5.739 €/m2

+ 2,7%

5.844 €/m2

Calvià

3.786 €/m2

+ 1%

4.061 €/m2

S'Arenal-Son Verí

2.442 €/m2

+ 6,2%

2.470 €/m2

Son Vida

5.242 €/m2

+ 9,3%

7105 €/m2

Valldemossa

4.065 €/m2

+1.8%

4.001 €/m2

Manacor

1.695 €/m2

+2.6%

1.624 €/m2

Sa Ràpita

2.761 €/m2

+7.8%

3.469 €/m2

Binissalem

1.928 €/m2

-2.5%  

1.889 €/m2



Mallorca property prices: How Coronavirus changed the market

The Coronavirus has left its mark not only on people's minds but has also changed the game's rules on various markets and investment sites. The Mallorca property market is no exception. 

But, contrary to all expectations and pessimistic forecasts of most, real estate in Mallorca has shown its resilience and relevance in the global isolation. 

At the beginning of the period of coronavirus restrictions Mallorca real estate market, succumbing to global trends, began to slow down and, in some places, even show negative values. But, as soon as it became clear that being locked in their apartments on the mainland was unbearable, the real estate market immediately regained its position and grew gradually. 

Overview of housing prices in Mallorca in 2022

After all, spending time in a confined space apartment аin a huge metropolis is not as pleasant as in a house or townhouse, with its plot under the gentle sun on the beach on a beautiful island. 

Mallorca is a tourist island, and a large part of its economy is generated by tourism. For this reason, the island government has partially lifted restrictions during the high season in the summer of 2020, allowing many people to buy and sell property on Mallorca. 

Landlords and property developers immediately picked up on the upward price trend, so the sale of properties in Mallorca brought many a good profit.

Of course, the number of deals during the Covid period fell slightly. But the average bill increased from €500,000 to €860,000. 

The premium segment was the most in-demand. Most deals carried out in the Covid period were about expensive villas, detached houses, townhouses and ground floor apartments (planta baja) with garden area, which increases the value of such an object.  

Due to the tendency of rising demand for expensive real estate and the availability of online transactions Mallorca real estate market at the end of 2020 showed a positive trend of +1.2%, by June 2021 came to a stable +2%, and by the end of 2021 showed an increase of +6.5% and at March 2022 continues to grow.

What influences the property prices in Mallorca? Mallorca property prices forecast

How the Mallorca property market is developing now? 

Following the recovery from the COVID-19 crisis, the vast majority of experts are predicting a significant increase in Mallorca property prices. Luis García Langa, director of Corredordefondos.com, states that "the property market has experienced a strong increase in prices since the end of the real estate crisis. That was one of the reasons: the injection of liquidity into the banks, allowing them to increase their solvency and open the tap they had closed during the crisis".

The director of Corredordefondos.com, in an interview for the news digest ultimahora.es, stresses that "among other things, we have an increasing presence of foreign investors. The foreign buyer has much more purchasing power than the local and Spanish population and has a great desire to live in the Balearic Islands. This is something that COVID-19 seems to have reinforced: if a person from Munich (for example) can work remotely from home, they prefer to do so from Mallorca. So demand may be higher here, and prices will continue to rise, or at least not fall as much as in other areas."

Pau A. Monserrat, the economist at Futur Legal and associate professor at the UIB, believes that "house prices in the Balearic Islands have proved more resilient to crises than properties on the mainland. If we take the recent Fotocasa study "Cumulative variation of housing in Spain in 2021", it turns out that the price of 15 years of housing, comparing 2006 to 2021, fell in Spain on average by 33%, when the Balearic real estate rose by 6% over the same period. If we compare ten years, the difference is even greater: real estate in the Balearic Islands has increased by 25%, while the Spanish average has fallen by 14%."

In his opinion, "as long as demand for property on the islands exceeds supply, there is inflationary pressure from the foreign buyer, and it is preferable to sell or rent to tourists than to rent to residents. And it seems that not even the COVID-19 virus around the world can change this trend. So I understand that house prices in our islands will continue to rise regardless of the monetary policy pursued by the ECB."


Which property is in demand and why

It is worth mentioning the impact of the crisis on buyer choice trends in 2021/2022. Whereas in the past, new-build, mid-rise apartments and penthouses were more likely to be purchased, since the end of 2021, buyers are more likely to choose Planta Baja apartments with garden area, detached houses on the secondary market with clear potential for renovation and plots of land with ready-made projects for construction.

 As for new-build properties, which always have special status on the market and are regarded as the most sought-after segment of the Mallorca real estate market, most of the projects that have been started are now sold out in 2022. 

And projects that are in the early stages most often have a reservation. This can also be seen as an indicator for price increases, as the price per square metre is lower (by an average of 15-25%) in the first and middle stages than at the time of handover of the keys to the buyer.


 Number of property transactions on the Mallorca in 2021 and early 2022

According to INE transfer statistics, the number of sales in the Balearic Islands from the beginning of 2021 to December 2021 amounted to 14.146. The latest figures published by the General Council of Notaries show that the number of transactions for 2020 was 10.684, which is +24.47% for the year. 

Number of property transactions in Mallorca

Due to the current situation and the activation of the pent-up demand factor, there is already a shortage of properties available for purchase in Mallorca at the present time in March 2022. This is one of the most critical factors shaping the forecast for property prices. It is safe to say that prices will increase rapidly in the coming years, and demand will remain strong.

Despite the pandemic, the past year, 2021, has been the year when home purchases by foreigners in the Balearic Islands have broken all records. At least with regard to home purchase transactions of more than €500,000. 

According to statistics from the Association of property registrars (with reference to the DIARIO de MALLORCA digest ), 2,157 transactions in luxury property (worth over 500,000 euros) were closed by foreigners last year. This is four times more than ten years ago. In 2012, for example, 520 contracts for the purchase and sale of luxury housing were concluded by non-residents. Before the pandemic in 2019, the number of such deals was 1,484.

Who buys property in Mallorca

In 2021, the most significant number of deals with foreigners were carried out by German nationals. Their share of the total number of sales was more than 36%. This figure is even higher than the number of transactions carried out with Spanish nationals. 

Second place for foreign investment in real estate Mallorca occupies the British. Their share of the total mass of transactions was about 11%. It is worth saying that this figure dropped slightly in connection with the geopolitical position of Britain. French citizens carried out fewer deals -  8% of the total number of transactions.

The Balearic Islands have been leading the way in selling homes to foreigners for many years now, and all experts expect this trend to continue this year. This fact was confirmed by Hans Lenz, president of the Balearic Islands National and International Real Estate Association (ABINI).

What types of real estate was bought in Mallorca in 2021 

 The Covid crisis has changed the external picture of property sales in Mallorca both quantitatively and qualitatively. In mid-2020, there was a noticeable slowdown in the market and a decline in the number of property transactions. At the same time, there was an increase in the average value of properties sold and a change in buyer priority. In 2020, 33% of transactions were for apartments on the secondary market. 

Apartments (planta baja)

Penthouses

Secondary market apartments

New-build apartments

Villas

Finka (country house)

Land plot

% of total transactions

9%

4%

28%

8%

24%

21%

6%

Average transaction cheque

560.000 €

1.00.000 €

340.000 €

550.000 €

1.670.000€

880.000 €

640.000€


Data provided by the Spanish National Institute of Statistics (INE) with reference to www.ultimahora.es and the publication www.europapress.es.

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

The investment attractiveness of new buildings in the post-covid period has increased against the general backdrop. At the end of 2021, there were 621 projected properties registered on the island. These are exclusive properties that have already obtained all the necessary permits and are at the start of construction or in its final stages. This includes both apartment complexes with their infrastructure and private homes and luxury villas with increased value. 

Mallorca’s region

Percentage of the total number of new buildings

Number of projects in the location

Palma de Mallorca

33%

205 projects

Southwest of Mallorca

27%

168 projects

Southeast of Mallorca

12%

75 projects


The most popular new-build market is the southwest direction. It is also considered to be the most expensive. 

The remaining 28% of new homes and gated communities are evenly distributed across the rest of the island and have lower investment appeal due to geography, restrictions on building square footage and the difficulty in obtaining tourist licences for new builds. 

Mallorca's new housing market

For example, in the southern municipalities, there is a moratorium on obtaining a tourist licence for the first five years after a house has been commissioned.  

Overall, according to estimates of Spain's National Institute of Statistics (INE), the new building market in Mallorca since the beginning of 2021 has grown by 21%. Experts estimate it will continue to grow in the near future, despite the complex procedure for issuing permits and licences for construction.

The most popular new-build market is the southwest direction. It is also considered to be the most expensive. 

The remaining 28% of new homes and gated communities are evenly distributed across the rest of the island and have lower investment appeal due to geography, restrictions on building square footage and the difficulty in obtaining tourist licences for new builds. 

For example, in the southern municipalities, there is a moratorium on obtaining a tourist licence for the first five years after a house has been commissioned.  

Overall, according to estimates of Spain's National Institute of Statistics (INE), the new building market in Mallorca since the beginning of 2021 has grown by 21%. Experts estimate it will continue to grow in the near future, despite the complex procedure for issuing permits and licences for construction.

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 Spain, the average cost of renting in Mallorca is calculated based on the number of square meters. On March 15, 2022, it stands at 11.5 €/m2, which is 4.1% higher than the average annual rate for the year 2021. This value is higher than the average for mainland Spain by about 1 €/m2 and the same amount 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?

A brief analysis of Tasalia's Mallorca property price forecast report shows that the Southwest of the island, areas such as Andratx and Calvià, as well as the North of the island in Alcúdia, best known for its spectacular Playa de Muro beach, are the safest investments.

Municipality

Current price for 1 sq.m

Forecast for 2024

Percentage ratio


Forecast for change in price for sq.m

Andratx

4.803 €/m2

5.629  €/m2

+ 17,21%

826 €

Calvià

4.524 €/m2

5.982 €/m2

+ 32,22%

1 458 €

Alcúdia

2.773 €/m2

3.785 €/m2

+ 36,51%

1012 €

Manacor

1.664 €/m2

1.742 €/m2

+ 4,53%

75€

Inca 

1.519 €/m2

1.602  €/m2

+ 5,45%

83 €


The two 'cheapest' municipalities in the Balearic Islands are also on Mallorca. They are Inca and Manacor. Only in these two municipalities of the Balearic archipelago cost per square metre below 2000 euros. According to the real estate portals idealista and fotocasa, prices for studio apartments of 35 sq.m. here start at 60,000 €.

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, Perris 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".

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 Vynes, 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. 

The real estate experts at Yes! Mallorca Property keeps up to date with trends and has its finger on the market's pulse. 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. Apply now!

Thank you for your attention! If you are interested in Mallorca real estate contact our agents!


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