Mallorca property prices 2026: locations, prices & value trends

Property prices in Mallorca have followed a clear pattern for years: they keep rising, even when other European markets falter. In 2026, the average asking price for houses across the island is around €4,704 per square metre; for flats, it is around €5,384. Behind this is a structural imbalance: demand is growing while supply, particularly of high-quality properties, is shrinking. This guide explains how prices vary between key locations, what is driving the market, where prices are rising fastest and what to look out for when buying. All figures are based on documented sources; where data is unavailable, we say so explicitly.

• Everything you need to know about buying property in Mallorca

Current prices per square metre at a glance

The island-wide average masks substantial regional differences. Flats in Mallorca command higher prices per square metre than houses on average. This is due to the concentration of high-quality new-build flats in Palma and the comparatively large floor areas of older fincas inland.

House price trends in Mallorca (€/m²)

Source: Engel & Völkers, asking prices on property portals, as at 4 June 2026

Flat price trends in Mallorca (€/m²)

Source: Engel & Völkers, asking prices on property portals, as at 4 June 2026

Note: These figures are based on asking prices, not notarised transaction prices. Depending on the buyer’s negotiating position and the property’s condition, actual purchase prices can be lower.

Notably, after exceptionally strong growth of over 13 per cent in 2024 and over 12 per cent in 2025, the rise in flat prices has now eased to just under 6 per cent. Growth in house prices was steadier but remained consistently positive.

Palma de Mallorca: prices in the capital

Palma is not only the island’s most populous city but also one of its more expensive property markets – and is becoming increasingly important as an urban primary residence for international buyers.

House price trends in Palma (€/m²)

Source: Engel & Völkers, as at 4 June 2026

Apartment price trends in Palma (€/m²)

Source: Engel & Völkers, as at 4 June 2026

At around 4,910 euros per square metre, houses in Palma are priced slightly above the island average. The old town (Casc Antic), the Santa Catalina neighbourhood and the Passeig Mallorca corridor are among the city’s most sought-after – and most expensive – locations. According to estate agents’ market observations, townhouses and renovated manor houses (Mallorquina) in prime locations command considerably higher prices.

Regional price differences: Where is Mallorca expensive, and where are prices more moderate?

The island can be broadly divided into five price zones. At the time of writing, reliable, consistently compiled municipality-level data for the whole island was available only in part; the following overview draws on several market reports.

Regional price structure 2024/2026 (indicative figures)

Note: According to Porta Mallorquina’s 2024 market study, the average price per square metre in the luxury segment exceeded 10,000 euros per square metre across the island for the first time. Premium properties in prime locations with exceptional sea views were priced even higher, according to the same study.

According to consistent market reports, the southwest remains the most expensive region, closely followed by Palma City. The island’s inland areas recently recorded the strongest percentage price increase, catching up from a considerably lower base.

What is driving prices? The key market factors

Several mutually reinforcing factors lie behind price trends on Mallorca – no single factor fully explains the market.

1. Structural shortage of supply The number of properties for sale has declined according to market observations, particularly in the high-end segment. Strict building regulations and limited land available for development make new construction difficult.

2. Consistently strong international demand According to API estate agents’ association president José Miguel Artieda, German buyers account for around 40 per cent of all property purchases by foreigners in the Balearic Islands. Meanwhile, interest is growing from the USA and – following geopolitical developments in the Middle East – from the Emirates.

3. Declining numbers of German buyers In April 2026, Artieda explicitly noted that the German share of the market had recently fallen as a result of economic uncertainty in Germany. This is dampening demand without fundamentally changing the overall market.

4. Displacement of local residents More and more islanders are leaving the Balearic Islands for mainland Spain because rents and purchase prices are no longer affordable on local incomes. This increases political pressure, but also shows that the market is largely driven by buyers from elsewhere.

5. Energy efficiency and location as factors in price differences According to market reports, energy efficiency and quality are becoming increasingly important buying criteria. Poorly rated properties are becoming relatively less attractive; renovated or energy-efficient properties command premiums.

Luxury property: The market from 10,000 euros per square metre

Mallorca’s luxury segment follows its own market dynamics, with above-average price growth and an acute shortage of supply.

According to the Porta Mallorquina 2024 market study, prices for luxury properties rose by 13 per cent in 2023, while growth in the overall market was more moderate. Increases of up to 18.8 per cent were recorded for properties with outstanding sea views. For the first time, the island-wide average price in the luxury segment exceeded €10,000 per square metre.

Key locations in this segment:

• Son Vida (Palma): Gated residential area with security, golf and easy access to the city – one of the island’s most exclusive addresses
• Port d'Andratx / Andratx: Marina, international buyers and maximum discretion
• Deià / Valldemossa (Tramuntana): Culturally prestigious, in a World Heritage setting, with very limited supply
• Bendinat / Costa d'en Blanes: Villa locations close to the city with sea views

Please note: Many transactions in the luxury segment take place off the official radar. Asking prices can differ significantly from final sale prices. An independent valuation is particularly important here.

Price trends in historical context: From 2015 to 2026

To put the current market in perspective, it helps to take the long view. According to Porta Mallorquina, property prices on Mallorca have risen by up to 78 per cent since 2015. By comparison, the global financial crisis in 2008 pushed prices down considerably; the recovery began around 2012.

Key milestones in price trends

Summary based on: Porta Mallorquina, 2024 market study; Engel & Völkers 2026; rossitzahantelmann.com, Dec. 2024

A börse.de market report for 2026 identifies the luxury segment as the main driver of growth in the overall market.

Buyer profile: Who buys on Mallorca?

The buyer profile is international and has shifted slightly of late.

Buyer breakdown at a glance

Source: Interview with José Miguel Artieda, API president, Mallorca Zeitung, April 2026

Artieda stresses that the decline in German buyers is not fundamentally changing the market: it is being partly offset by other international buyers. Overall, demand remains robust.

Rental market and expected returns

Anyone buying to let faces a mixed picture. The long-term rental market is characterised by extremely limited availability and rising rents – a social problem for locals, but attractive to investors at first glance.

The regulatory picture for holiday lets is complex: since Decreto-ley 4/2025, flats in apartment buildings in the Balearic Islands can no longer be newly registered for holiday letting. For detached houses, the Consell de Mallorca now grants licences only within limited quotas, and none at all in Palma. Anyone buying a holiday property with the aim of letting it to tourists on a short-term basis must check whether an existing ETV licence (estancia turística en vivienda) is attached to the property – such a licence is now an asset in its own right.

Please note: The rules on tourist letting in the Balearic Islands change regularly. Do not buy a property expecting to obtain a new holiday letting licence without having the position checked by a legal professional for that specific property.

For more on long-term letting as an alternative: Long-term rentals in Mallorca – tenancy law and calculating returns

New builds vs existing properties: price differences and market conditions

New-build developments are scarce on Mallorca – and correspondingly expensive. Building regulations are restrictive, and developable land in sought-after locations is almost impossible to find. This pushes new-build developments into the highest price bracket.

Anyone considering building or renovating should be aware of the planning restrictions and energy requirements: Building & renovating on Mallorca

Common mistakes when buying based on price comparisons

The price per square metre alone tells you little. These mistakes come up time and again:

1. Confusing asking prices with sale prices. Property portal data shows asking prices, not prices recorded in deeds. The final sale price can be considerably lower.

2. Assuming prices are uniform across the island. Applying the island-wide average to Son Vida or the Tramuntana is misleading – both are well above average.

3. Ignoring the licence status of holiday properties. Without a verified ETV licence, short-term letting is not permitted under current law.

4. Failing to check the land registry entry. Encumbrances, rights of way and unauthorised extensions are not uncommon in Spain. Before signing, you must have a notary check the documents and inspect the Registro de la Propiedad. How to check the land register in Spain

5. Underestimating the additional costs. When buying an existing property on Mallorca, you will need to pay property transfer tax (ITP), notary and land registry fees, and possibly an estate agent’s commission. Together, these add up to a substantial percentage of the purchase price. Additional property purchase costs on Mallorca in detail

6. Ignoring the energy performance certificate. It has been mandatory for property sales for years – and is increasingly affecting prices. Energy performance certificates in Spain: requirements, costs and process

7. Deciding to buy without viewing the property in person. Photos cannot show the full extent of a slope, road noise or the condition of the wiring and pipes. Property viewing checklist

What comes next? Taxes and ongoing costs

The purchase price is one figure. The total cost of ownership is another. If you buy on Mallorca, you need to budget for ongoing taxes as well as one-off purchase costs:

• IBI (Impuesto sobre Bienes Inmuebles): Annual property tax, with the amount depending on the municipality and cadastral value
• Wealth tax: Applies in the Balearic Islands above certain tax-free allowances; particularly relevant to non-residents. Wealth tax in Spain – what you need to know
• Non-resident income tax (IRNR): Payable even if the property is not rented out – based on an imputed rental value
• Inheritance and gifts: The Balearic Islands have their own rules for transfers within a family. Inheritance and gifts in the Balearic Islands
• Sustainable tourism tax: Payable on tourist rentals. More about the tourism tax

You can find a complete overview of all taxes here: Taxes and legal matters when buying property on Mallorca

Checklist: making a purchase decision based on price data

Before making an offer, make sure you have ticked off these points:

• Price per square metre compared with the regional benchmark (not just the island-wide average)
• Property type and year of construction taken into account (new build vs. renovated existing property vs. property in need of renovation)
• Licence status checked (ETV licence in place if holiday letting is planned)
• Land registry extract requested and checked for charges
• Energy performance certificate (Certificat d'Eficiència Energètica) reviewed
• Additional purchase costs calculated (ITP, notary, land registry and, if applicable, estate agent)
• Tax position as a resident or non-resident clarified
• Independent lawyer (Abogado) instructed – not the seller’s lawyer

Conclusion

Mallorca’s property market remains robust and continues to trend upwards in 2026 – though not at the pace seen in the exceptional years of 2024 and 2025. House prices rose by just under 5 per cent year on year, while apartment prices rose by just over 5.5 per cent. The luxury segment remains the strongest driver of growth, supply remains tight, and the structural excess of demand – fuelled by international buyer interest – persists.

Anyone buying here is entering a market that has risen by up to 78 per cent since 2015, with no structural reversal of the trend currently in sight. That does not mean every property is a good investment: location, licence status, energy efficiency and the actual price paid – not the asking price – determine its real value.

Read the complete Mallorca property buying guide | Tips for buying property in Mallorca

Official sources

• Engel & Völkers Mallorca Market Report 2026: engelvoelkers.com – Mallorca property prices (asking-price data, updated 4 June 2026)
• Engel & Völkers Palma de Mallorca Market Report 2026: engelvoelkers.com – Palma property prices (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: caib.es – Registre turístic (ETV) (ETV licences, Decreto-ley 4/2025)
• ATIB – Agència Tributaria de les Illes Balears (ITP, property transfer tax): atib.es
• Registro de la Propiedad (Spanish land registries): registradores.org

Land reference values in Mallorca: which figures are comparable?

If you are looking for a land reference value on the German model, do not equate it with the price per square metre of a flat or house. A plot value relates to the land; a property price also reflects the building and its condition. The island-wide average asking price is therefore not a suitable value for a particular plot.

For an initial assessment, it helps to distinguish between three figures:

• Asking price: This shows what sellers are asking, not the price at which a property sold.
• Cadastral information: A cadastral value is not a binding sale price.
• Land Registry information: The Registro de la Propiedad is relevant when checking registered rights. An extract from the Land Registry is not a substitute for a valuation either.

For a specific property, comparable sales in the same location, along with its condition, area and legal status, matter more than an island-wide average. If the purpose is a tax assessment, the applicable values should be checked for the individual case. This is not legal or tax advice.