Mallorca housing shortage leaves 17,000 homes short

Mallorca and the rest of the Balearic Islands are short of an estimated 17,000 homes when housing supply is measured against population growth over the past 25 years. The gap amounts to 14.7%. In Palma on 17 September, the Ministry of Housing, Territory and Mobility presented the figures from the Balearic Islands Housing Observatory, known as OHIB.

The islands’ population grew by 46.3% between 2000 and 2025, while the number of homes rose by 31.5%. Mallorca’s estimated shortfall is 11.4%, compared with 54.3% in Formentera, 43.2% in Eivissa and 8.4% in Menorca.

José Francisco Reynés, director general for Housing and Architecture, stressed that the estimate does not necessarily match actual demand.

Listing prices run far ahead of sale values

Property platforms put the average asking price in the Balearics at 5,224 euros per square metre in 2025. Registrars recorded 3,988 euros, while the observatory put the figure at 3,782 euros per square metre.

That leaves advertised prices 38% above actual sale values, according to the ministry. The difference is widest in Formentera at 49.3%, followed by Palma at 42.4%. It stands at 35.5% in Maó and exceeds 31% in both Eivissa and Ciutadella.

Reynés warned that portal listings are asking prices, not the prices ultimately paid by buyers.

Foreign buyers pay 80% more on average

Domestic buyers spend about 304,000 euros on average on a home, while foreign buyers pay close to 548,000 euros — 80% more. Since 2023, purchases by domestic buyers have risen by almost 31%, while foreign purchases have increased by 34.2%.

Foreign buyers are the majority in coastal municipalities, while domestic buyers predominate inland. Mallorca had nearly 480,000 homes in 2025; across the Balearics, there were almost 619,000, with 66% in multi-family buildings.

Tourist-use homes rose by 132% between 2015 and 2022 to almost 26,500. Although 349 have been removed in the past three years, they still make up 4.2% of the islands’ housing stock.

The figures also point to an ageing building stock. Some 56.5% of residential buildings were built before the first energy rules, and 83.4% of the 175,677 energy certificates recorded for those buildings were rated E, F or G. Reynés said energy-efficiency renovation schemes backed by Next Generation funds should continue in the coming years.

Topics: Housing · Tourism · Politics · Palma

Source: Europa Press / Mallorca.com