Property in Palma
Palma recorded 5,134 residential sales in 2025, up 3.2% from 4,973 in 2024. Its increase stood 3.7 percentage points above the island-wide change, a decline of 0.46%. For sellers, the latest year brought more completed transactions even as activity across the island edged down. Buyers entered a market that had recovered from Palma’s 2020 low of 3,674 sales, while remaining below its 2017 peak of 5,890.
The municipality spans 32 localities and combines substantial sales activity with a high existing-contract rent level. In 2024, Palma’s flat existing-contract rent median was €9.84 per square metre, ranking 4th among 43 island municipalities. The middle level of the island’s municipalities was €7.14 per square metre. For households considering housing costs and owners assessing existing rents, Palma stands well above that municipal middle level.
Property sales in Palma
Palma’s 5,134 residential sales in 2025 exceeded the 2024 total of 4,973 by 3.2%. Over those same years, the island-wide total declined by 0.46%, leaving Palma’s change 3.7 percentage points higher. The municipality thus moved in a different direction from the island aggregate, with a larger volume of completed transactions for buyers and sellers to navigate.
The longer sales path puts that increase in context. Palma recorded 5,292 sales in 2016 before reaching its peak of 5,890 in 2017; activity then fell to 3,674 in 2020. A rebound brought 5,703 sales in 2022, followed by 4,933 in 2023. The 2025 total of 5,134 marks a recovery from that later dip and a second successive annual increase, while remaining below the earlier peak.
5,134 Sales · 2025
Sales count, not price *
Year-on-year change: +3.2%
Appraised values in Palma
In the second quarter of 2026, Palma’s overall appraisal value was €3,814.50 per square metre. New homes carried an appraisal value of €4,410.90 per square metre, while used homes had an appraisal value of €3,791.60 per square metre. The overall appraisal value lay close to the used-home level.
For buyers and sellers comparing property categories, the €4,410.90 new-home appraisal value stood above the €3,791.60 used-home appraisal value in the same quarter. That difference places new and used homes at distinct valuation levels per square metre in Palma.
Appraised value · 2026 Q2: 3,814.5 €/m²
Valuation, not purchase price *
Buy a house, apartment or finca in Palma
Current listings from the marketplace.
Rents in Palma
For 2024, Palma’s flat existing-contract rent median was €9.84 per square metre across 31,529 recorded flat contracts. The monthly median flat rent was €800, and the median flat area was 85 square metres. Houses had an existing-contract rent median of €7.87 per square metre across 2,392 contracts; their monthly median rent was also €800, with a median area of 131 square metres. The larger median house area accompanies a lower rent per square metre.
The flat existing-contract rent median rose from €6.09 per square metre in 2015 to €9.84 in 2024. Over the same span, the house existing-contract rent median moved from €5.16 to €7.87 per square metre. At the latest level, Palma’s €9.84 flat median ranked 4th among 43 island municipalities, standing 37.7% above the €7.14 middle level of the island’s municipalities. Both dwelling types show a sustained rise in rents paid under existing contracts.
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 reached 131.3 in 2024, with an annual increase of 4.2%. From its 2015 level of 100.0, the index had risen by 31.3%. Growth was particularly pronounced before the subsequent pause: the index reached 110.1 in 2018 and 115.3 in 2019, when its annual increase was 4.8%. For tenants and owners following rental-market movements, the latest level continues a longer upward path.
That path paused in 2020, when the rent index stood at 115.3 and its recorded annual change was 0%. It then climbed to 117.5 in 2021 and 121.8 in 2022, before reaching 126.0 in 2023 and 131.3 in 2024. The latest annual rise of 4.2% followed a 3.4% increase in 2023. The pause and subsequent gains leave the index well above its earlier level.
Year-on-year change · 2024: +4.2%
Index, not euro amount *
Estate agents in Palma
Palma has 596 brokers and ranks 1st among 49 municipalities by broker count.
Additional costs when buying a home
As an example, an existing home with a price of €381,450 and an area of 100 square metres, based on the second-quarter 2026 appraisal value, incurs transfer tax of €30,516 at an assumed rate of 8%. The example fees are €595 for the notary, €270 for registration, €400 for administrative processing and €3,814.50 for legal services at an assumed rate of 1%. Those fees total €5,079.50. Tax and fees together come to €35,595.50, or 9.33% of the example price, bringing the price plus purchase costs to €417,045.50.
Palma’s urban IBI has an annual rate of 0.445% on the cadastral value, effective from 2025. It is a recurring property charge alongside the one-off amounts in the €381,450 purchase example.
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 has sales activity changed in Palma?
What are existing flat rents in Palma?
How do appraisal values differ between 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 ·