Mallorca: Still a hotspot for luxury villas in Spain
Mallorca is a sought-after location for luxury villas. The island accounts for 27 percent of the national supply. Exclusive villas in the Tramuntana are particularly in demand.
Mallorca is a key market for luxury villas in Mallorca (Luxury Villas: Location, Concepts and Prices). One in three luxury villas for sale is located on the Balearic island. In the national prime real estate market, Mallorca ranks second for exclusive properties valued at over €2.5 million.
According to current reports, Mallorca accounts for 27% of the national sales supply. Only the province of Málaga leads the market with 30 percent. The Balearic Islands as a whole account for 34% of the luxury real estate supply in Spain.
Currently, the luxury segment accounts for 18% of the total real estate market in Mallorca. Exclusive Mallorcan-style villas in the Serra de Tramuntana are particularly in demand, especially in towns such as Deià, Valldemossa, and Sóller. These municipalities in the northwest of the island are increasingly attracting wealthy buyers.
Luxury Real Estate Market in the Balearic Islands
As mentioned, Mallorca leads with 27%, followed by Ibiza with 6% and Menorca with 1%. These three islands are among the top 10 best real estate markets.
In Spain as a whole, Málaga and Mallorca account for 57% of the luxury real estate market. This is followed by the provinces of Madrid (9%), Barcelona (7%), Alicante (7%), the greater Pitiusa area (6%), the provinces of Girona (4%), Cádiz (2%), and finally the islands of Tenerife (2%) and Menorca.
New construction deficit drives up prices
Mallorca remains extremely attractive to national and international buyers. However, the naturally limited availability of land for new construction is hindering market growth and driving up prices.
According to data from the fourth quarter of 2024, the average property price in the Balearic Islands reached €3,187 per square meter, representing an increase of 10.8 percent compared to the same period last year.
Specifically, the average price in Palma in February 2025 was just under €5 per square meter – an increase of 17.9 percent compared to the same month last year.
Germans and Americans dominate investments
In 2024, German buyers were again the main investors in prime real estate in the Balearic Islands. American buyers are becoming increasingly important among the total number of international buyers.
In terms of buyer motives in the Balearic Islands, 64% are purchasing a luxury property as a second home, 29% as a primary residence, and the remaining 7% as an investment.