Mallorca Property Market: Complete Guide (2025)
Mallorca’s property market continues to be a hotspot for international investors and lifestyle buyers. This guide provides a comprehensive overview of the market in 2025, with data-driven insights to help you make informed decisions.
Quick facts:
- Average Price Increase (YoY): +11.7% (Q2 2025)
- Foreign Buyer Share: 30-34%
- Average Long-Term Rental Yield: 4-6%
- Average Price per m² (Palma): 5,036 €/m²
Mallorca Property Price Trends (2024-2025)
According to the Spanish National Institute of Statistics (INE), the price of freehold housing in the Balearic Islands (which includes Mallorca) surged by 11.7% in the second quarter of 2025 compared to the same period in 2024. This growth is broken down as follows:
- New Housing: +16.1%
- Used Housing: +11.2%
Year-to-date, housing prices in the Balearic Islands have increased by 7.2%.
Mallorca Property Price Index (2024-2025)
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Property Prices by Municipality
Property prices in Mallorca vary significantly by location. Here’s a breakdown of the average price per square meter in some of the most popular areas:
| Municipality | Avg. Price per m² | Source |
|---|---|---|
| Palma de Mallorca | 5,036 €/m² | Idealista (Sep 2025) |
| Soller | 6,309 €/m² | Idealista |
| Calvià (Santa Ponça) | 5,707 €/m² | Fotocasa (Sep 2025) |
| Calvià (Costa de la Calma) | 6,134 €/m² | Fotocasa (Sep 2025) |
| Calvià (Cas Català - Illetes) | 7,749 €/m² | Fotocasa (Sep 2025) |
| Calvià (Portals Nous) | 7,511 €/m² | Fotocasa (Sep 2025) |
| Calvià (Calvià Pueblo) | 6,686 €/m² | Fotocasa (Sep 2025) |
| Calvià (Palmanova) | 6,687 €/m² | Fotocasa (Sep 2025) |
| Calvià (Magaluf) | 6,686 €/m² | Fotocasa (Sep 2025) |
The Role of Foreign Buyers
Foreign buyers play a crucial role in the Mallorcan property market, accounting for 30-34% of all property purchases. The primary nationalities of foreign buyers are:
- Germans: ~40%
- British: ~20%
Popular areas for foreign investment include Palma, Andratx, Calvià, and Pollença.
Rental Yields in Mallorca
Mallorca offers attractive rental yields for property investors. Here’s a summary of what you can expect:
- Long-Term Rentals: 4-6%
- Short-Term (Vacation) Rentals: 5-8%
Yields can vary by property type:
- Studio apartments: 6.98%
- 1-bedroom apartments: 5.26%
- 2-bedroom apartments: 4.07%
- 3-bedroom apartments: 4.52%
- 4+ bedroom apartments: 5.31%
How to Find Property in Mallorca
The most popular online portals for finding property in Mallorca are:
- Idealista: The leading Spanish property portal.
- Fotocasa: Another major Spanish property portal.
- Rightmove: A UK-based portal with a large selection of Spanish properties.
Tips for your search:
- Use filters to narrow down your search by price, location, and property type.
- Set up alerts to be notified of new properties that match your criteria.
- Don’t be afraid to contact multiple agents to get a feel for the market.
The Buying Process in Spain
The process of buying a property in Spain involves several steps:
- Obtain an NIE (Número de Identificación de Extranjero): This is a tax identification number for foreigners.
- Open a Spanish Bank Account: You’ll need this to transfer funds for the purchase.
- Sign a Reservation Agreement: This takes the property off the market and typically involves a small deposit.
- Sign a Private Purchase Contract (Contrato de Arras): This is a legally binding contract where you’ll typically pay a 10% deposit.
- Sign the Public Deed of Sale (Escritura de Compraventa): This is done before a notary and completes the purchase.
- Register the Property: The property must be registered in your name at the Land Registry.
Get Expert Help
Navigating the Spanish property market can be complex. We recommend seeking professional advice from:
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FAQs
Is property in Mallorca a good investment?
With strong price growth and rental demand, Mallorca is considered a solid investment. However, like any investment, it’s important to do your own research.
What are the taxes for buying property in Mallorca?
You’ll need to pay a property transfer tax (ITP) or VAT (IVA), plus stamp duty, notary fees, and legal fees. These can add up to 10-15% of the purchase price.
Can I get a mortgage in Spain as a foreigner?
Yes, it’s possible to get a mortgage from a Spanish bank as a non-resident, typically for up to 70% of the property value.
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