Real Estate Prices in Mallorca

For years, interest in houses, land, and apartments in Mallorca has been growing, particularly among foreign buyers and investors. Factors such as the lifting of restrictive COVID-19 measures, high investment security, and the island's attractiveness and quality of life have led to high demand, which is reflected in real estate prices.

Property Price Trends: What Do Properties Cost in Mallorca?

Real estate prices in Mallorca differ significantly from those on the Spanish mainland. The average price per square meter on the mainland is €1,814/m² (as of March 2022), while in Mallorca it is €3,351/m². This represents a difference of 41%. Only in Madrid, Barcelona, and the Basque Country are real estate prices higher.

Due to the factors mentioned above, property prices in Mallorca have increased in almost all regions and locations. The greatest dynamics are seen in the south (approximately 14%), the southeast (approximately 14%), and the southwest (around 13%). The north also shows significant price dynamics with a 12.3% increase.

Looking at specific locations within these regions, price increases prevail. Only in Binissalem in the center of the island and in Sol de Mallorca were there no price increases. The highest increases by far, at 16%, were recorded in Cala Vinyes. Significant increases between 7% and 10% were also seen in Andratx, Llucmajor, Palmanova, Son Vida, and Sa Ràpita. More moderate increases—between 1% and 3%—were noted in the island's capital Palma, Alcudia, El Toro, Portals Nous – Bendinat, Valldemossa, and Manacor.

Overview: Property prices in Mallorca by region

Palma

In the capital, Palma, the prices for apartments and flats remain stable. In nearby areas such as El Arenal, apartments are available starting from €400,000. However, the neighborhoods around the old town are the most expensive. In prime locations like Portixol, Es Molinar, or Ciudad Jardin, apartments can cost nearly double compared to El Arenal. Prices in Santa Catalina and San Augustin are at similar levels.

Top-segment houses in the old town are offered for around €3.4 million. Stable prices between €1.5 million and €2 million are seen in La Bonanova, Ciudad Jardin, and Es Molinar. Houses along Playa de Palma average around €1 million.

Palma Surroundings

An exclusive villa in Son Vida is significantly more expensive than in Palma, with an average price of €5 million. In surrounding areas such as Puigpunyent or Esporles, house or finca prices are similar, ranging between €2.3 million and €3 million.

The average price for an apartment in Son Vida has increased compared to 2020 and is around €900,000. An apartment in the surrounding villages costs roughly half as much.

Central Island - Santa Maria and Surroundings

An apartment around Santa Maria in the center of the island costs between €280,000 and €350,000. Price increases have been observed in all regions compared to 2020.

Prices for country houses, villas, or fincas also show a positive trend and have risen compared to the previous year. A property in Santa Maria, Alaró, or Bunyola averages around €3 million. The cheapest properties, costing about half as much as a villa in a prime location, are found in Marratxí despite good connections to Palma.

Southeast - Santanyí and Surroundings

The southeast of Mallorca offers good perspectives for investors with positive trends. Compared to other regions, villas and houses in Santanyí, Portopetro, Es Carritxo, and nearby areas are still available at relatively affordable prices ranging from €1.4 million to €1.8 million.

Apartment prices in the southeast have steadily increased compared to previous years. The average purchase price for an apartment in areas like Cala Murada, Santanyí, or Sa Rapita is between €350,000 and €400,000.

South - Llucmajor and Surroundings

The price segment in the south of the island shows significant developments for both houses and apartments. An apartment in a prime location such as Cala Blava costs around €500,000. Prices in coastal towns like Llucmajor are slightly lower.

In the housing market in the southern part of the island, properties in rural areas around Llucmajor start at around €2 million. In prime locations like Son Verí Nou, Cala Blava, and adjacent areas, the average price for a house is about €1.25 million.

Southwest - Santa Ponsa, Port Andratx, and Surroundings

In the entire southwest of the island, prices are rising, already at a high level. The average offer price for a villa in the prime location of Port Andratx is around €4.5 million. In nearby places like Bendinat, prices range between €3 million and €4 million. In comparison, properties in Andratx or Calvia cost about half as much on average.

Apartment prices in the southwest are also on the rise. An apartment in popular locations like Bendinat or Costa d’en Blanes costs €1 million. Prices in Port Andratx, Port de Mar, or Sol de Mallorca range from €750,000 to €1 million.

West - Deià, Valldemossa, Sóller, and Surroundings

In the west, only slight price increases are observed compared to the southwest. Houses in Deià or Port de Sóller, both prime locations, average around €3.5 million. With the exception of Port de Sóller, the apartment market in the west of Mallorca remains price-stable. Depending on the location, an apartment costs between €380,000 and €450,000.

North - Pollensa, Alcudia, and Surroundings

The prices for villas and fincas in the north of Mallorca are varied, ranging from an average of €2 million to €2.7 million in coastal towns, with average prices between €2.5 million and €3.8 million around Pollensa, and up to €6.5 million in Formentor. In more rural areas towards the island's center, properties are available at a fair price range of €1.1 million to €1.5 million.

Apartment prices have remained similar to the previous year, averaging between €450,000 in prime locations like Puerto de Pollensa, Puerto de Alcudia, and Playa de Muro, and €300,000 for apartments inland or along the coast in places like Cala San Vicente or Can Picafort.

Northeast - Artá and Surroundings

In the northeast, the average offer prices for both houses and apartments have also risen. Apartments in Artà or Colònia de St. Pere average €450,000, with coastal apartments ranging from €350,000 to €450,000. The cheapest apartments are found in places towards the island's center, such as Manacor.

For houses and fincas, the price level in Manacor ranges between €1.5 million and €1.8 million. The most expensive properties, with average prices of nearly €2 million, are in prime locations around Artà and Colònia de St. Pere.

Current Market Trends and Outlook

Real estate experts and appraisers predict that prices will continue to rise, albeit perhaps more moderately than before. Property prices on the island have proven more crisis-resistant than those on the Spanish mainland. According to a recent study by the Spanish real estate platform Fotocasa, property prices on the mainland decreased by an average of 14% between 2011 and 2021, whereas they increased by 25% in the Balearic Islands during the same period. The presence of foreign investors is expected to strengthen: they have much greater purchasing power than the local population and often desire to live on the Balearic island. Mallorca combines beauty, accessibility, high recreational value, pleasant climate, and investment security, making it one of the top destinations in Europe that has emerged stronger from every crisis.

Source: Prices and data are based on information from Yes MallorcaProperty, Casafari LLC, and Idealista.com.