Mallorca, the largest of the Balearic Islands, has become a prime destination for real estate investment over the past decades. Known for its favourable climate, stunning geographical views, and safe environment, it attracts people from all over the world seeking a more relaxed pace of life. In recent years, the island has seen a notable increase in real estate investments, especially from new markets like the United States.

Why invest in Mallorca now?

The real estate market in Mallorca is expected to flourish in 2024/25, making it one of the best times to invest. Several factors contribute to this optimistic outlook:

1. Increased interest from new investors: There has been a significant rise in interest from international buyers, especially from the United States. This new wave of investors is attracted to the island’s high quality of life, beautiful landscapes, and potential for profitable investments. With a strong US economy and growing interest in international real estate investment, Mallorca has positioned itself as an attractive destination for these new investors. The political and economic stability of the region, along with its robust legal system, provides additional security for international buyers.
2. Booming German market: The German market has traditionally been strong in Mallorca and continues to grow. German investors represent a large portion of real estate purchases on the island. In 2023, around 20% of all real estate transactions in Mallorca were made by German buyers, attracted by the climate, quality of life, and proximity to Germany. German investment on the island ranges from apartments in central Palma to luxury villas on the outskirts.
3. Strong British presence:British buyers also maintain a solid presence in Mallorca’s real estate market. After Germany, the UK is the second-largest market in terms of property investments on the island. In 2023, the British accounted for approximately 15% of all real estate purchases. Despite uncertainties related to Brexit, British demand remains high, especially in areas like Palma, Santa Ponsa, and Puerto Pollensa.
4. Growing interest from Scandinavia and Switzerland: Investors from Scandinavia (Sweden, Norway, Denmark) and Switzerland are in third place, with notable growth in their real estate purchases. Together, these markets accounted for around 10% of real estate transactions in Mallorca in 2023. The quality of life, security, and climate on Mallorca are key factors attracting these buyers. Popular areas among Scandinavian and Swiss investors include Andratx, Sóller, and Deià.

Various property options in Mallorca:

Mallorca is a diverse and dynamic island, offering a wide range of properties to suit different preferences and budgets. Each type of property has its own advantages and distinctive characteristics, making the choice dependent on buyers’ individual needs and desires. Below is an expanded description of the different types of properties available in Mallorca, along with the advantages of each.

Town Houses with pool

Town houses with a pool in Mallorca are a popular option for those looking to combine the convenience of urban living with the privacy of having their own pool. These properties, often located in charming towns like Pollensa, Alcúdia, and Palma, offer a perfect balance between functionality and luxury. The advantages of purchasing a town house with a pool include access to private outdoor space, ideal for entertaining and family life. Additionally, these properties are usually located close to essential services and cultural points of interest, facilitating a comfortable and vibrant lifestyle. The possibility of enjoying a private pool adds value, allowing residents to relax and refresh in the comfort of their home without the need to travel to public beaches or pools.

Advantages:

• Private outdoor space.
• Ideal for families and entertainment.
• Combines the convenience of urban living with the privacy of a private pool.

Examples of areas:

• Pollensa: Charming town with a rich history and culture.
• Alcúdia: Known for its medieval walls and proximity to beaches.
• Palma: The capital, with all amenities and services.

Country Homes

Country homes are ideal for those seeking tranquillity and privacy in a natural setting. Located in rural areas like Binissalem, Santa Maria, and Sóller, these properties offer large plots that can be used for agriculture, gardens, or simply to enjoy the open space. Purchasing a country home in Mallorca allows owners to enjoy a relaxed lifestyle in harmony with nature. Additionally, these properties are often built with traditional materials and designs that reflect Mallorcan architecture, adding significant historical and aesthetic value. Country homes are perfect for those looking to escape the hustle and bustle of urban life and enjoy the serenity of the countryside, without being too far from modern amenities.

Advantages:

• Tranquillity and privacy in the countryside.
• Large plots for agriculture or gardens.
• Relaxed lifestyle and connection with nature.

Examples of areas:

• Binissalem: Famous for its vineyards and rural landscapes.
• Santa Maria: With a rural atmosphere and proximity to Palma.
• Sóller: Picturesque valley surrounded by mountains and orange groves.

Apartments

Apartments in Mallorca are a practical and accessible lock-up and go option, especially in urban areas like Palma, Puerto Pollensa, and Illetas. One of the main advantages of apartments is their low maintenance and relatively low living costs compared to other types of properties. Apartments offer proximity to essential services, nightlife, and entertainment options, making them ideal for young professionals, couples, and retirees seeking comfort and convenience. Additionally, apartments are an excellent option for rental investment, given the constant flow of tourists and demand for accommodation on the island. Sea views, ease of transport, and vibrant urban life are some of the many benefits of living in an apartment in Mallorca.

Advantages:

• Easier maintenance and lower cost of living.
• Proximity to services and urban life.
• Good option for rental investment.

Examples of areas:

• Palma: Cultural and commercial centre of the island.
• Puerto Pollensa: With sea views and a relaxed atmosphere.
• Illetas: Known for its quiet life and coves.

Penthouses

Penthouses represent the pinnacle of luxury and exclusivity in Mallorca’s real estate market. Located in privileged areas like Palma, Bendinat, and Santa Ponsa, these properties offer impressive panoramic views and large private terraces. One of the biggest advantages of penthouses is the additional privacy they offer compared to other apartments, as they are usually located on the top floors of buildings. Additionally, penthouses are often equipped with high-end finishes and luxury features, such as private rooftop pools and spacious entertainment areas. For those seeking a sophisticated and exclusive lifestyle, penthouses in Mallorca provide an ideal environment with all modern comforts and an unparalleled setting.

Advantages:

• Panoramic views and large terraces.
• Greater privacy compared to other apartments.
• Exclusivity and luxury.

Examples of areas:

• Palma: Offers spectacular views of the city and bay.
• Bendinat: Exclusive area near the golf course.
• Santa Ponsa: Popular among expatriates and luxury tourists.

Luxury Villas

Luxury villas in Mallorca are synonymous with exclusivity, spaciousness, and high quality of life. Located in prestigious areas like Son Vida, Puerto Andratx, and Bendinat, these properties offer ample indoor and outdoor spaces, luxury finishes, and unparalleled privacy. The advantages of acquiring a luxury villa include the possibility of enjoying large gardens, private pools, and often impressive sea or mountain views. These villas are designed to provide maximum comfort and are equipped with the latest technologies and design features. For high-net-worth buyers, luxury villas represent a solid investment in exclusive properties that not only offer a luxurious lifestyle but also a high potential for appreciation.

Advantages:

• Ample indoor and outdoor spaces.
• High quality of construction and luxury finishes.
• Privacy and exclusivity.

Examples of areas:

• Son Vida: Known as the Beverly Hills of Mallorca.
• Puerto Andratx: Exclusive coastal area with impressive views.
• Pollensa: Luxury area close to golf courses and beaches.

Rustic Fincas

Rustic fincas are traditional properties that reflect the authentic Mallorcan lifestyle. Located in areas like Pollensa, Santanyi, and Santa Maria, these properties offer large plots that can be used for agriculture, livestock, or simply to enjoy nature. One of the main advantages of rustic fincas is their potential for renovations and customisation, allowing owners to create a home that reflects their tastes and needs. Additionally, rustic fincas provide a unique connection to the history and culture of Mallorca, as many of these properties are centuries old and built with local materials and traditional techniques. For those seeking a quiet and authentic lifestyle, rustic fincas are an unparalleled option.

Advantages:

• Large plots and agricultural possibilities.
• Traditional Mallorcan lifestyle.
• Potential for renovations and customisation.

Examples of areas:

• Pollensa: Fantastic summer area close to many beaches and Puerto Pollensa.
• Santanyi: Place with several beaches and one of the most beautiful villages on the island.
• Santa Maria: Almost in the centre of Mallorca, 15 minutes from Palma, it is a charming place with a popular market.

Townhouses in Mallorca

Townhouses offer a practical and affordable solution for those looking for a home in Mallorca. Commonly found in areas like Pollensa Old Town, Sóller, and Deià, these properties combine the convenience of a compact home with the security and community of a neighbourhood. The advantages of townhouses include easier maintenance than a villa, lower ownership costs, and good value for money. Additionally, townhouses are usually located in well-planned residential areas, with easy access to schools, shops, and services. This type of lock-up and go property is ideal for families and couples seeking a comfortable and accessible property in a convenient location.

Advantages of Buying Townhouses:

• Easy Maintenance: Less upkeep than a villa, saving time and money.
• Reduced Costs: Lower purchase and maintenance costs.
• Good Value for Money: Offers all comforts at a lower cost.
• Convenient Locations: Easy access to schools, shops, and services.
• Security and Community: Safe environment and sense of community.

Recommended Areas:

• Pollensa Old Town:
• Advantages: Charming town with history, close to beaches and mountains.
• Features: Cobbled streets and cosy squares.
• Sóller:
• Advantages: Picturesque valley with access to the historic tram.
• Features: Nature, modernist architecture, and tranquillity.
• Deià:
• Advantages: Natural beauty and artistic atmosphere.
• Features: Sea and mountain views, traditional stone houses.

Beach Houses

Beach houses in Mallorca are highly sought after for their prime location and relaxed lifestyle. Located in coastal areas like Cala d'Or, Portals Nous, and Sant Elm, these properties offer direct access to the beach and stunning sea views. The advantages of owning a beach house include the ability to enjoy water activities, walk along the coast, and live in a peaceful and picturesque environment. Additionally, these properties are ideal for holidays and tourist rentals, given Mallorca's constant appeal as a tourist destination. Living in a beach house provides a unique experience of serenity and natural beauty, perfect for those who wish to be close to the sea.

Advantages of Buying a Beach Property

• Resale Value and Appreciation: Beachfront properties tend to maintain and increase in value over time due to constant demand.

• Lifestyle and Wellbeing: Living near the beach offers a relaxed and healthy lifestyle, with easy access to outdoor activities and a natural environment that enhances physical and mental wellbeing.
• Rental Income Potential: Beach properties are popular among tourists and can generate significant income through holiday rentals, making the investment profitable.

Recommended Areas for Beach Houses

• Alcudia:
• Advantages: White sand beaches, excellent tourist infrastructure.
• Features: Wide range of water activities, proximity to restaurants and shops.
• Puerto Pollensa:
• Advantages: Family-friendly atmosphere, beautiful sea views.
• Features: Seafront promenade, quiet beaches, and numerous outdoor activities.
• Bon Aire:
• Advantages: Exclusive and quiet area, ideal for relaxation.
• Features: Small picturesque beaches, close to the marina and nature reserves.
• Playa de Muro:
• Advantages: Extensive sandy beaches, ideal for families.
• Features: Complete tourist services, nearby natural parks.

Regardless of the type of property you choose, Mallorca offers a variety of options for all tastes and budgets. The most accessible areas in terms of property cost offer opportunities for those with more modest budgets, while luxury areas, such as Son Vida and Puerto Andratx, are aimed at high-net-worth buyers seeking exclusive, high-end properties. The choice of the right property depends on individual needs, desired lifestyle, and the investment goals of each buyer.

Lifestyle and Amenities

Mallorca caters to various lifestyle options, from the cosmopolitan atmosphere of Palma de Mallorca, the capital, to the more tranquil countryside lifestyle in Santanyí. Palma itself is lively, vibrant, and close to the airport, offering a high quality of life and numerous luxury properties. The island's infrastructure is well developed, with excellent medical services, international educational institutions, and a variety of entertainment and recreational activities. This balance between modernity and tradition makes Mallorca an attractive place to live and invest.

Which are the best areas to buy a property in Mallorca?

Investing in a property in Mallorca can be an exciting and profitable decision. The island offers a variety of areas that cater to different lifestyles, preferences, and budgets. Here are some of the best areas to buy property in Mallorca:

1. Palma de Mallorca:
   As the capital, Palma is one of the best places in Spain to live with high quality. It boasts a prime coastal location, historic landmarks, luxurious apartments, and is close to the airport. Property prices here range from €300,000 for a one-bedroom apartment to €10 million for a villa or penthouse. The city has been declared by The Sunday Times as the best place to live in the world due to its coastal location, sea views, endless amenities, strong historical background, and an impressive cathedral. Palma offers a vibrant nightlife, a rich cultural scene with numerous museums and art galleries, and a wide range of restaurants serving everything from local to international cuisine. German and British buyers are very interested in this area, taking advantage of its infrastructure and high-quality amenities.
2. Calatrava:
   Located in the city centre, this area is known for its historic mansions and old palaces. It offers a mix of historic buildings, exclusive restaurants, and cosy cafes. Property prices range from €435,000 to €4.5 million. Living in Calatrava is like stepping back in time, surrounded by the rich history of the island and traditional architecture. Residents enjoy proximity to Palma's main points of interest as well as a quiet and sophisticated atmosphere. Additionally, the demand for properties in this area remains high due to its exclusivity and historical value.
3. Sant Jaume:
   A popular residential area surrounded by leisure options, exclusive shops, and cosy restaurants. It also hosts a large weekly market. Properties here range from €549,000 to €6 million. The proximity to the famous Plaza Mayor and Palma's beaches makes Sant Jaume a coveted place for those who want to be at the heart of the action. Sant Jaume residents enjoy a lively lifestyle, with easy access to a variety of cultural and entertainment activities, making it an ideal place for families and young professionals. This area has seen significant demand from German and Scandinavian buyers.
4. Paseo Marítimo:
   Known for its luxury penthouses with rooftop terraces and private pools, this area is ideal for families and tourists. Properties range from €750,000 to €1.75 million. The proximity to the sea and spectacular views make this area one of the most desired to live or invest in Mallorca. The Paseo Marítimo is famous for its lively coastal promenade, offering a variety of restaurants, bars, and shops, as well as beautiful parks and recreational areas to enjoy the outdoors. This area is also popular among tourists, offering additional income opportunities for investors through holiday rentals. British and Swiss investors have shown increasing interest in this area due to its prime location and stunning views.
5. Santa Catalina:
   Famous for its traditional old buildings with painted facades and small front balconies. The area also boasts a covered market. Property prices range from €650,000 to €2.6 million. Santa Catalina is known for its bohemian atmosphere and is a popular culinary hotspot with numerous restaurants, bars, and cafes. The community here is vibrant and diverse, attracting expatriates, artists, and young professionals seeking a dynamic and creative lifestyle. The covered market in Santa Catalina is a central hub where residents can buy fresh produce and enjoy local gastronomy. Property demand in this area has been largely driven by Scandinavian and British buyers, seeking the authenticity and charm of this vibrant community.
6. Puerto Andratx:
   Located on the southwest coast, this vibrant town is popular for its sailing culture and fresh fish market. Property prices here range from €4-7 million for a villa, and €500,000 to €1 million for modern apartments. Andratx combines shopping, high-end restaurants, stunning architecture, and vibrant nightlife. This area is ideal for those seeking a balance between a tranquil life and proximity to luxury services and activities. The nautical community of Andratx is one of the most prestigious on the island, attracting sailing enthusiasts from around the world. German and Swiss buyers have shown particular interest in this area, attracted by its exclusivity and sailing opportunities.
7. Port de Pollensa:
   In the north of the island, this area offers a secluded and remote setting with sandy beaches, hiking trails, and a golf course. Property prices range from €300,000 to €5 million. Pollensa is known for its tranquillity and natural beauty, attracting those seeking a more relaxed lifestyle. In addition to its stunning landscape, Port de Pollensa offers a variety of outdoor activities such as water sports, hiking, and cycling, making it a popular destination for nature lovers and active families. British and German buyers dominate the market in this area, drawn by the serenity and recreational opportunities it offers.
8. Son Vida:
   Close to Palma, this area is known for its famous hotels, golf courses, and well-designed villas. It is popular among golfers, homeowners, and celebrities. Property prices range from €465,000-€950,000 for apartments and €1-€21 million for villas. Son Vida is synonymous with luxury and exclusivity, with stunning views and a tranquil atmosphere. This area is ideal for those seeking a high-end property in a prestigious location. The gated communities and 24-hour security also make Son Vida an attractive option for families and those who value privacy. German and Swiss buyers have shown particular interest in this area, attracted by its exclusivity and sailing opportunities.
9. Soller:
   Known for its narrow streets and traditional houses, proximity to mountains and sea, and a fertile valley. Property prices here range from €345,000 to €1.5 million. Soller offers a unique mix of mountains, sea, and an agricultural setting, making it a desirable place to live. The town of Soller is also known for its picturesque vintage train that connects with Palma, offering a scenic journey through the beautiful Mallorcan countryside. Local markets and artisanal shops add charm to this enchanting town. Swiss and Scandinavian investors are increasingly interested in Soller, drawn by its authenticity and natural beauty.
10. Alcudia Beach:
    This area features a beautiful blue flag beach, hotels, and resorts. Property prices range from €350,000 to €7.8 million. Alcudia is popular among tourists seeking to enjoy the sun, sand, and crystal-clear waters. Alcudia beach stretches for several kilometres, offering ample opportunities for water activities and relaxation. Well-developed tourist infrastructure and a wide range of amenities make Alcudia an attractive destination for both residents and visitors. British and German buyers dominate the market in this area, drawn by the serenity and recreational opportunities it offers.
11. Deiá:
    A picturesque village with honey-coloured houses and green shutters, luxurious boutique hotels, and famous hiking trails. Property prices range from €850,000 to €6.7 million. Deiá is known for its artistic atmosphere and expatriate community. This picturesque hillside village is famous for its natural beauty and tranquil atmosphere. Narrow cobblestone streets and panoramic views of the sea and mountains make Deiá a special place for those seeking inspiration and serenity. The local community includes numerous artists, writers, and musicians, contributing to its vibrant cultural scene. Swiss and Scandinavian investors have shown increasing interest in Deiá, attracted by its charm and exclusivity.

Investing in Mallorca in 2024/25 presents a unique opportunity to capitalise on a growing market driven by new international interest, especially from the United States. The island offers diverse property options, a high quality of life, and a variety of attractive locations for both modest and luxury investments. Whether seeking the vibrant lifestyle of Palma or the tranquillity of the northern regions, Mallorca has something to offer every investor.

The German market remains a dominant force on the island, representing a significant proportion of real estate purchases. Their constant and growing interest ensures that Mallorca's real estate market remains strong and attractive. British buyers, despite the challenges of Brexit, continue to see Mallorca as an ideal destination for investment and lifestyle. The Scandinavian and Swiss markets, in third place, are also increasing their presence, attracted by the quality of life and opportunities the island offers.

Moreover, the island's well-developed infrastructure, high-quality services, and political and economic stability make it a safe and attractive destination for investment. The combination of natural beauty, rich culture, and modern amenities ensures that Mallorca will remain a desirable place to live and visit in the coming years.

In summary, Mallorca's real estate market is booming, and 2024/25 is an ideal time to invest. The island offers a diverse range of properties, from modest to luxurious, in locations that cater to a variety of lifestyles and preferences. With growing interest from new international markets and the opportunities this brings, investing in Mallorca can be a smart and profitable decision for those seeking a combination of quality of life, security, and investment potential.