Property in Palma
Palma closed 2025 with 5,134 residential sales, up 3.2% from 4,973 in 2024. Mallorca’s sales total declined 0.46% over the same period, putting Palma’s change 3.69 percentage points ahead of the islandwide change. Palma’s annual sales recovered from 3,674 in 2020 to 5,703 in 2022, dipped to 4,933 in 2023 and rose again through 2024 and 2025. Buyers and sellers therefore entered the latest completed-sales year in a more active municipal market than in the preceding year.
Housing costs give that activity a monetary scale. In 2024, Palma’s flat existing-contract rent median was €9.84 per m² per month; the median monthly flat rent was €800, alongside a median dwelling size of 85 m². In the second quarter of 2026, the overall residential appraisal value stood at €3,814.50 per m².
Property sales in Palma
Residential sales rose from 4,973 in 2024 to 5,134 in 2025, an increase of 3.2%. Mallorca’s sales total fell 0.46% over those same years, leaving Palma’s percentage change 3.69 percentage points higher. For sellers, the latest year brought more completed transactions within Palma; for buyers, more homes changed hands locally even as the islandwide total edged lower.
The longer path puts that increase in context. Palma’s annual sales reached a series high of 5,890 in 2017 before falling to 3,674 in 2020. They recovered to 5,703 in 2022, eased to 4,933 in 2023 and then rose through 4,973 in 2024 to 5,134 in 2025. The latest gain extends the rebound from the 2023 level, while annual sales remain below the 2017 high.
5,134 Sales · 2025
Sales count, not price *
Year-on-year change: +3.2%
Rents in Palma
In 2024, Palma’s flat existing-contract rent median was €9.84 per m² per month. The median monthly flat rent was €800, alongside a median flat size of 85 m². Houses had an existing-contract rent median of €7.87 per m² per month, a median monthly rent of €800 and a median size of 131 m². For renters and landlords, the equal monthly medians sit alongside different median dwelling sizes and per-square-metre levels.
The flat existing-contract rent median climbed from €6.09 per m² per month in 2015 to €7.90 in 2019 and €9.84 in 2024. Over the same span, the house existing-contract rent median rose from €5.16 to €7.87 per m² per month. Palma ranks fourth among 43 municipalities for its €9.84 flat existing-contract rent median. That level stands 37.7% above the €7.14 middle level of the island’s municipalities.
Existing rent, not asking rent *
| Property | Median | P25–P75 range | Rental contracts |
|---|---|---|---|
| Apartment2024 | 9.84 €/m² per month | 7.49–12.84 | 31,529 |
| House2024 | 7.87 €/m² per month | 5.14–11.27 | 2,392 |
Rental trends
Palma’s rent index advanced from 100.0 in 2015 to 115.3 in 2019, when its annual increase reached 4.8%. The index was virtually level at 115.3 in 2020, marking a pause after the earlier climb. It then rose to 117.5 in 2021 and reached 131.3 in 2024. The renewed rise followed that brief period of stability.
The rent index increased 4.2% in 2024, following a 3.4% increase in 2023, when it stood at 126.0. Its 2024 level of 131.3 was 31.3% above the 2015 starting level of 100.0. The latest annual increase was stronger than the preceding year’s increase.
Year-on-year change · 2024: +4.2%
Index, not euro amount *
Appraised values in Palma
In the second quarter of 2026, Palma’s overall residential appraisal value was €3,814.50 per m². The appraisal value for new homes was €4,410.90 per m², while the appraisal value for used homes was €3,791.60 per m². New-home valuations stood higher than used-home valuations within the same quarter.
The overall appraisal value of €3,814.50 per m² sat close to the used-home appraisal value of €3,791.60 per m². For buyers and sellers considering property condition, the new-home appraisal value of €4,410.90 per m² establishes a separate, higher assessed level.
Appraised value · 2026 Q2: 3,814.5 €/m²
Valuation, not purchase price *
Estate agents in Palma
Palma has 596 brokers, placing it first among 49 municipalities by broker count. For buyers and sellers, that is the largest broker presence in the municipal ranking.
self-reported
Additional costs when buying a home
As an example, an existing home with 100 m² of floor space is priced at €381,450, based on Palma’s second-quarter 2026 overall appraisal value. At that example price, transfer tax at 8% amounts to €30,516. Example fees comprise €595 for the notary, €270 for registration, €400 for administration and €3,814.50 for a lawyer at 1% of the example price. The example fees total €5,079.50; together with tax, purchase costs reach €35,595.50, or 9.33% of the example price. The example price plus those costs comes to €417,045.50.
Palma’s annual urban-property IBI rate is 0.445% of the cadastral value, effective from 2025.
Calculate closing costs
Explanation
The purchase price stated in the deed. If it is below the cadastral reference value, ATIB taxes the higher value.
Explanation
Existing property is subject to property transfer tax (ITP), while a new build is subject to value added tax (IVA) plus stamp duty (AJD). The two tax treatments are mutually exclusive.
- Total
- €35,595.50
Legal status: 1 January 2023
This calculation is provided for guidance only and is not a substitute for tax or legal advice in specific cases.
Mallorca IBI calculator
Explanation
The municipality sets the rate. IBI is a municipal tax: the same cadastral value costs considerably more in one town than in the next, because each one fixes its own rate in its tax bylaw (ordenanza fiscal).
Explanation
The valor catastral is the official value the Spanish land registry office (Catastro) sets for your property — land and building together. It is not the purchase price, not the market value and not the valor de referencia, and it normally sits well below all of them. You will find it on your last IBI bill and in the cadastral portal.
- Rate (tipo de gravamen) in Palma
- 0.445%
- IBI per year, ballpark figure
- €801.00
Calculated from the cadastral value. The bill is calculated on the reduced taxable base (base liquidable); where a revaluation is running, it comes out lower. Reductions and exemptions are not included.
Applies to this one cadastral unit and a full tax year. Not included: apportionment in the year of purchase, co-ownership shares, reductions and exemptions. A garage and a storeroom often have a cadastral reference of their own — then you calculate them separately.
That works out at €66.75 a month
The statutory range for this class of property runs from 0.400% to 1.100%; municipalities may go above or below it in certain cases (Art. 72(3) and (5)).
Legal status: 1 January 2025
This calculation is provided for guidance only and is not a substitute for tax or legal advice in specific cases.
Frequently asked questions
How active were residential sales in Palma?
What is the level of existing-contract rents?
How do appraisal values differ for new and used homes?
What costs accompany the example purchase?
Methodology and sources
- MIVAU: number of notarised sales, not a price.
- SERPAVI: Median rent actually paid under ongoing contracts according to tax data for 2024, not asking rent for new lettings.
- The middle level of the island’s municipalities is the median of municipal apartment-rent medians.
- INE IPVA: index (2015 = 100), not an amount in euros.
- MIVAU Tasación: appraised value for mortgage lending, not an achieved purchase price.
- Example price: 381,450 €. Example fees: notary 595 €, land registry 270 €, gestoría 400 €, lawyer 1 %, buyer’s agent fee 0 %.
- The annual urban-property IBI rate applies to the cadastral value.
- INE IPVA – www.ine.es
Data period ending: ; Retrieval date: .
Fuente: INE, www.ine.es
- MIVAU Tasación – apps.fomento.gob.es
Data period ending: ; Retrieval date: .
Origen de los datos: Ministerio de Vivienda y Agenda Urbana
- MIVAU Transacciones – apps.fomento.gob.es
Data period ending: ; Retrieval date: .
Origen de los datos: Ministerio de Vivienda y Agenda Urbana · Elaboración propia
- MIVAU SERPAVI – cdn.mivau.gob.es
Data period ending: ; Retrieval date: .
Origen de los datos: Ministerio de Vivienda y Agenda Urbana
- Òrgan de Gestió Tributaria. Aprovació definitiva modificació de l'Ordenança fiscal reguladora de l'impost sobre béns immobles, conceptes 112,00-112,01. Exercici 2025 (BOIB núm. 165, 17/12/2024) – www.caib.es ·