Mallorca Property Prices 2026: Locations, Prices & Market Trends
Property prices in Mallorca have followed a clear pattern for years: they rise – even when other European markets are struggling. In 2026, the average price per m² for houses across the island stands at around €4,704, and for apartments at around €5,384. Behind this lies a structural imbalance: demand is growing while supply – particularly of high-quality properties – is shrinking. In this guide, you will learn how prices differ across the key locations, which factors are driving the market, where price growth is strongest, and what you should pay particular attention to when buying. All figures are based on verified sources; where data is unavailable, we indicate this explicitly.
Are you thinking of buying in Mallorca – but unsure whether the price is right?
- 📩 Submit a personal enquiry — We will help you assess offers and connect you with local experts.
- Everything about the buying process in Mallorca
Current price per m² at a glance
The island-wide average conceals considerable regional differences. Apartments in Mallorca achieve higher average prices per m² than houses – a phenomenon attributable to the concentration of high-quality new-build apartments in Palma and the comparatively large floor areas of older fincas in inland locations.
Trend in house prices in Mallorca (€/m²)
| Year | Avg. price houses | Change vs. previous year |
|---|---|---|
| 2022 | 3.688,71 € | – |
| 2023 | 3.931,99 € | +6.60 % |
| 2024 | 4.113,06 € | +4.61 % |
| 2025 | 4.489,24 € | +9.15 % |
| 2026 | 4.704,26 € | +4.79 % |
Source: Engel & Völkers, listing prices on property portals, as at 4 June 2026
Trend in apartment prices in Mallorca (€/m²)
| Year | Avg. price apartments | Change vs. previous year |
|---|---|---|
| 2022 | – | – |
| 2023 | 4.008,67 € | +9.60 % |
| 2024 | 4.537,23 € | +13.19 % |
| 2025 | 5.095,22 € | +12.30 % |
| 2026 | 5.384,48 € | +5.68 % |
Source: Engel & Völkers, listing prices on property portals, as at 4 June 2026
Please note: These figures are based on asking prices, not on notarised transaction prices. Actual purchase prices may be lower depending on negotiating position and the condition of the property.
It is notable that the rate of price increases for apartments – following exceptionally strong growth of over 13 per cent in 2024 and over 12 per cent in 2025 – has now normalised to just under 6 per cent. For houses, growth was more steady but remained consistently positive.
Palma de Mallorca: prices in the capital
Palma is not only the most populous city on the island but also one of the more expensive markets – and is increasingly gaining importance as an urban primary residence for international buyers.
House price trends in Palma (€/m²)
| Year | Avg. price houses | Change vs. previous year |
|---|---|---|
| 2022 | 3.957,51 € | – |
| 2023 | 4.135,49 € | +4.50 % |
| 2024 | 4.259,73 € | +3.00 % |
| 2025 | 4.648,47 € | +9.13 % |
| 2026 | 4.910,15 € | +5.63 % |
Source: Engel & Völkers, as at 4 June 2026
Apartment price trends in Palma (€/m²)
| Year | Ø Price Apartments | Change vs. previous year |
|---|---|---|
| 2026 | 5.370,82 € | +6.04 % (annual trend) |
Source: Engel & Völkers, as of 4 June 2026
Palma houses sit at around €4,910 per square metre, slightly above the island average. The old town (Casc Antic), the Santa Catalina neighbourhood and the Passeig Mallorca axis are among the most sought-after — and most expensive — urban locations. For a townhouse or a renovated manor (Mallorquina) in a prime position, estate agents' market observations indicate significantly higher asking prices.
Regional price differences: where is Mallorca expensive and where is it moderate?
The island can be broadly divided into five price zones. Reliable, island-wide municipal data covering all locations was only partially available at the time of going to press; the following breakdown is based on several market reports.
Regional price structure 2024/2026 (indicative values)
| Region | Character | Price trend |
|---|---|---|
| South-west (Andratx, Port d'Andratx, Son Vida, Bendinat) | Most expensive segment on the island, luxury villas with sea views | Highest absolute prices |
| Palma City (particularly the old town, Santa Catalina) | Urban market, city apartments & townhouses | Above average, rising |
| South-east (Santanyí, Portocolom) | Popular with buyers from northern Europe, tranquil settings | Risen sharply, continuing to grow |
| Island interior / Tramuntana (Artà, Manacor, Sineu) | Fincas and country houses, largest plot sizes | Below island average, but rising more strongly |
| North (Alcúdia, Pollença) | Mixed market, tourism & residential | Moderate to mid-range |
Note: For the luxury segment, the average price per square metre exceeded the €10,000 per square metre threshold island-wide for the first time, according to the 2024 market study by Porta Mallorquina. In prime locations with exceptional sea views, premium listings were even higher according to the same study.
The most expensive region remains the south-west, according to consistent market reports, closely followed by Palma City. The strongest percentage price increase within the island was recently recorded in the interior, which is catching up from a significantly lower base.
What is driving prices? The key market factors
Several mutually reinforcing factors lie behind Mallorca's price development — no single one fully explains the market.
1. Structural supply deficit The number of properties available for sale has decreased according to market observations, particularly in the premium segment. New construction is difficult to realise due to strict building regulations and limited developable land.
2. Consistently high international demand German buyers account for around 40 percent of all property purchases by foreigners in the Balearen, according to API estate agent president José Miguel Artieda. At the same time, interest from the USA is growing, as is interest from the Gulf region — partly in the wake of the geopolitical situation in the Middle East.
3. Declining number of German buyers Artieda expressly noted in April 2026 that Germany's market share has recently fallen — a consequence of economic uncertainty in Germany. This dampens demand without fundamentally shifting the overall market.
4. Displacement of local residents More and more islanders are leaving the Balearen for the Spanish mainland because rental and purchase prices are no longer affordable on local incomes. This intensifies political pressure, but also highlights that the market is predominantly driven by outside buyers.
5. Energy Efficiency and Location as Price DifferentiatorsAccording to market reports, energy efficiency and quality are increasingly decisive purchasing criteria. Lower-rated properties are losing relative appeal, whilst renovated or energy-efficient homes command price premiums.
Luxury Properties: The Market from €10,000 per m²
The luxury segment on Mallorca follows its own market logic — with above-average price growth and extreme scarcity of supply.
According to the Porta Mallorquina market study 2024, prices for luxury properties rose by 13 Prozent in 2023, whilst overall market growth was more moderate. For properties with exceptional sea views, increases of up to 18,8 Prozent were recorded. For the first time, the island-wide average price of €10,000 per m² in the luxury segment was surpassed.
Drivers of this segment:
- Son Vida (Palma): A gated urbanisation with security, golf and city connectivity — one of the most exclusive addresses on the island
- Port d'Andratx / Andratx: Marina, international buyer base, maximum discretion
- Deià / Valldemossa (Tramuntana): Culturally prestigious, UNESCO World Heritage setting, very limited supply
- Bendinat / Costa d'en Blanes: Villa locations close to the city with sea views
Please note: In the luxury segment, many transactions take place below the official radar. Asking prices can differ significantly from actual sale prices. An independent valuation is particularly important here.
Price Development in Historical Context: From 2015 to 2026
Anyone wishing to properly contextualise the current market needs a long-term perspective. According to Porta Mallorquina, property prices on Mallorca have risen by up to 78 Prozent since 2015. For comparison: the global financial crisis of 2008 had depressed prices considerably; recovery began around 2012.
Milestones in Price Development
| Period | Development |
|---|---|
| until 2008 | Continuous growth, driven by Spain's EU accession (1986) and the introduction of the Euro (1999) |
| 2008–2012 | Marked price decline as a result of the financial crisis |
| 2012–2020 | Slow recovery, international buyers driving the market |
| 2020–2023 | Post-pandemic boom, strong acceleration in demand |
| 2024–2026 | More moderate but positive growth rates; luxury segment remains strong |
Summary based on: Porta Mallorquina, Marktstudie 2024; Engel & Völkers 2026; rossitzahantelmann.com, Dez. 2024
According to a market report by boerse.de for 2026, the luxury segment is cited as the primary growth driver of the overall market.
Buyer Profile: Who is Buying on Mallorca?
The buyer profile is international and has shifted slightly of late.
Buyer Profile Overview
| Buyer Group | Market Significance | Trend 2026 |
|---|---|---|
| Germans | Largest overseas group, approx. 40 % of foreign purchases | Declining |
| British | Traditionally significant | Stable to slightly declining |
| Americans | Growing | Increasing |
| Buyers from the Emirates | Small, but present | Stable / slightly declining (conflict situation) |
| Locals / Spaniards | Under pressure due to high prices | Demand is falling |
Source: Interview with José Miguel Artieda, API President, Mallorca Zeitung, April 2026
Artieda emphasises that the decline in German buyers is not fundamentally turning the market – it is being partially offset by other international buyers. Structurally, demand remains robust.
Rental market and yield expectations
Those buying to let will find a nuanced picture. The long-term rental market is characterised by extremely scarce availability and rising rents – a social problem for locals, and at first glance attractive for investors.
In the holiday rental market, the regulatory situation is complex: new tourist licence allocations on Mallorca have been halted since Decreto 4/2025. Anyone buying a holiday property with the aim of renting it out short-term to tourists must check whether an existing ETV licence (Llicència d'Empresa Turística de Vacances) is attached to the property – such a licence is today a valuable asset in its own right.
Please note: The legal situation regarding tourist rentals in the Balearic Islands changes regularly. Do not purchase a property in the expectation of obtaining a new holiday rental licence without having this checked legally on a case-by-case basis.
On long-term letting as an alternative: Long-term rental in Mallorca – everything you need to know about rental law and yield calculations
New build vs. existing properties: price differences and market conditions
New-build projects are scarce on Mallorca – and priced accordingly. Planning regulations are restrictive, and buildable plots in sought-after locations are barely available any longer. This is pushing new-build projects into the premium price bracket.
| Property type | Characteristics | Price trend |
|---|---|---|
| New build (apartments, Palma) | Limited availability, often pre-reservation required | Above average |
| New build (villas, south-west) | Low unit numbers, luxury segment | Peak prices |
| Existing properties (renovated) | Largest market share, wide price range | Steadily rising |
| Existing properties (in need of renovation) | Entry-level potential, but factor in costs | Below average, but lower demand |
| Fincas / country houses (inland) | Large plots, risen from a low base | Strongest relative growth |
Anyone considering building or renovating should be aware of the planning restrictions and energy requirements: Building & Renovating in Mallorca
Most Common Mistakes When Buying Based on Price Comparisons
The price per m² alone tells you very little. These mistakes come up time and again:
Confusing asking prices with transaction prices. Portal data reflects asking prices, not notarised sale prices. The actual closing price can be considerably lower.
Assuming regional uniformity. Anyone applying the island average to Son Vida or the Tramuntana is mistaken – both are significantly above the mean.
Ignoring the licence status of holiday properties. Without a verified ETV licence, short-term rental operation is not permitted under current law.
Not checking the land registry entry. Encumbrances, rights of way, and illegal extensions are far from uncommon in Spain. A notarial review and a check of the Registro de la Propiedad before signing are essential.How to check the land registry in Spain
Underestimating additional purchase costs. When buying a resale property in Mallorca, property transfer tax (ITP), notary fees, land registry fees, and potentially estate agent commission all apply. These add up to a considerable percentage of the purchase price.Mallorca purchase ancillary costs in detail
Ignoring the energy certificate. Mandatory on sale for years now – and increasingly relevant to pricing.Energy certificate Spain: obligations, costs, and process
Making a purchase decision without an on-site viewing. Photos cannot convey a sloping plot, road noise, or the condition of the pipework.Property viewing checklist
What comes next? Taxes and ongoing costs
The purchase price is one figure. The total cost of ownership is quite another. Anyone buying in Mallorca must factor in not only the one-off acquisition costs but also ongoing tax liabilities:
- IBI (Impuesto sobre Bienes Inmuebles): Annual property tax, the amount determined by the municipality and the cadastral value
- Wealth tax: Applicable in the Balearen, above certain allowances; particularly relevant for non-residents.Wealth tax in Spain – what you need to know
- Non-resident income tax (IRNR): Payable even when the property is not rented out – based on a deemed rental value
- Inheritance and gift tax: For transfers within the family, the Balearen has its own specific regulations.Inheritance & gift tax in the Balearen
- Sustainable tourism tax: Applicable when letting for tourist purposes.More on the tourism tax
You can find the complete overview of all taxes here: Taxes & legal matters when buying property in Mallorca
Checklist: making a purchase decision based on price data
Before you make an offer, you should have ticked off the following points:
- Price per square metre compared against regional benchmark (not just the island average)
- Property type and year of construction taken into account (new build vs. refurbished existing property vs. renovation project)
- Licence status checked (ETV licence in place if holiday letting is planned)
- Land registry extract requested and checked for encumbrances
- Energy certificate (Certificat d'Eficiència Energètica) reviewed
- Purchase ancillary costs calculated (ITP, notary, land registry, estate agent where applicable)
- Tax situation clarified as resident or non-resident
- Independent solicitor (Abogado) instructed – not the seller's
Conclusion
The property market in Mallorca is proving resilient in 2026 and continues on an upward trajectory – though no longer at the breakneck pace of the exceptional years 2024 and 2025. House prices rose by just under 5 per cent year on year, while apartment prices increased by just over 5.5 per cent. The luxury segment remains the strongest growth driver, supply stays tight, and the structural excess of demand – underpinned by international buyer interest – shows no sign of abating.
Anyone buying here is buying into a market that has risen by up to 78 per cent since 2015, and for which no structural reversal of trend is currently in sight. That said, not every property represents a sound investment: location, licence status, energy efficiency, and the actual – rather than the asking – price are what determine real long-term value.
📩 Would you like a specific listing assessed? We can connect you with local experts.
To the complete Mallorca property buying guide | Tips for buying property in Mallorca
Official sources
- Engel & Völkers Market Report Mallorca 2026: engelvoelkers.com – Property prices Mallorca (Asking price data, updated 4 June 2026)
- Engel & Völkers Market Report Palma de Mallorca 2026: engelvoelkers.com – Property prices Palma (Asking price data, updated 4 June 2026)
- Mallorca Zeitung – Interview with José Miguel Artieda (API), April 2026: mallorcazeitung.es
- Porta Mallorquina – Market study 2024: porta-mallorquina.de
- Gobierno de las Illes Balears (GOB) – Tourism and regulation: ibartur.caib.es (ETV licences, Decreto 4/2025)
- ATIB – Agència Tributaria de les Illes Balears (ITP, property transfer tax): atib.es
- Registro de la Propiedad (Spanish land registry offices): registradores.org