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The Real Estate Market in Mallorca, a Consistently Growing Value

For decades, the Balearic Islands have been an internationally popular holiday destination, as well as a place for primary and secondary residences. Their popularity remains undiminished. Most visitors to the Balearic Islands are drawn to Mallorca. The beautiful beaches and stunning nature make it possible to enjoy a relaxing stay, with always something new to discover. It's no wonder, then, that many buyers have decided to purchase their first or second home in Mallorca in recent years. In its current market report for Mallorca, Balearic Properties provides an overview of the Mallorcan residential real estate market, where it is still worth investing.

Revaluation of New Areas

The residential real estate sector has seen high demand since 2020, with the number of sales in Mallorca increasing significantly year on year. "The favourable development reinforces buyers' confidence because they are investing in a continually growing market," says the managing director of Balearic Properties in the Balearic Islands. The high demand contrasts with an increasingly scarce supply of properties. As a result, areas of the island that had not previously attracted buyers' attention are being revalued. These include, for example, the stretch of beach at Playa de Palma and the coastal town Cala Major.

Property Prices in Mallorca's Prime Regions

The southwest and Son Vida are among the top areas in Mallorca's premium segment. The southwest has recorded a greater increase in average prices than any other region in Mallorca in recent years. Exclusive properties such as beachfront villas and penthouses are among the most popular, especially in the new construction sector. As far back as the 1980s, Puerto de Andratx was the "in" place, and this has not changed to this day. Those looking to buy a villa here in 2024 can expect to pay an average price of €5 million. No further building permits will be granted in Son Vida in the future, which is expected to further increase property prices. Son Vida is located near Palma and is one of the island's most exclusive and popular areas.

Some of the best properties are also found in the north of Mallorca. Particularly in the Formentor region, where the average price of villas in 2024 is €5.2 million. Since properties directly by the sea are extremely scarce, Balearic Properties notes a growing interest in rural properties with pools, located just 15 minutes' drive from the coast.

Palma de Mallorca: The Epicentre of Real Estate Transactions

In 2024, nearly half of all residential real estate transactions in Mallorca take place in Palma de Mallorca. Exclusive town houses have seen an increase in the average price to €4.2 million. However, apartments are particularly sought after. Seafront apartments in the coastal strip between the Portixol and Ciudad Jardín neighbourhoods reach an average price of €900,000 in 2024. With still moderate price levels, the El Terreno neighbourhood offers good investment potential. Proximity to Palma makes Puig de Ros and Cala Blava in the south of Mallorca very popular. Seafront villas reach an average price of €2.1 million.

Western Mallorca has the highest price levels for residential property in the upper segment, with an average property price of €3.8 million. The main locations in the west include Deiá, Valldemossa, and Puerto de Sóller.

Enduring Demand for Classic Fincas

When people think of Mallorca, classic fincas undoubtedly come to mind first. They promise authenticity, individuality, and relaxation. In 2024, properties with traditional Mallorcan architectural styles continue to enjoy great popularity. The average price of fincas in Santanyí, which currently attract German buyers, is €1.9 million. In Santa Maria and Alaró, both located in the centre of the island, classic fincas with modern amenities are among the most sought-after properties, while buyers in the northeast of Mallorca mainly look for villas near the sea and fincas in the vicinity of Artà.

Real Estate Prices in Mallorca in 2024: Prospects

For 2024, the real estate boom in Mallorca is expected to continue. The excellent infrastructure, with very good hospitals, schools, and other educational and care facilities, also allows for year-round living. The scarcity of building permits in prime locations further contributes to increase the value of existing properties. In the premium segment in particular, high demand and rising property prices are expected, consolidating Mallorca as a safe and attractive real estate investment destination.

By Iris Gruenewald
Founder

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