The Real Estate Market in Mallorca

The real estate market in Mallorca remains stable and robust. Whether as an investment or for private use, interest in purchasing property continues unabated in 2022. Currently, 60% of the properties on Mallorca are owned by foreigners.

This year, the island expects new visitor records following the past two pandemic years. People are eager to enjoy life again. While many tourists vacation in Mallorca for one or two weeks, an increasing number of people want to live and work on the island permanently. The pandemic has shown that many traditional office jobs can be performed remotely.

International Demand is Booming

When examining the current market situation, a distinction must be made between the international and the domestic real estate market. The domestic market suffered significantly during the COVID-19 pandemic but is slowly recovering. In contrast, Mallorca’s international real estate market is booming, with enormous interest and demand. The 2021 fiscal year was one of the best ever, with 59% of foreign buyers coming from Germany. Many prospective buyers and investors fear inflation and negative interest rates and view properties in prime locations on Mallorca as attractive and safe investments. Additionally, the popular Balearic island offers around 300 sunny days a year, providing a high emotional feel-good factor.

Properties in Mallorca are a Good Investment

The question "Is it worth buying property in Mallorca?" can be answered with a clear "Yes." The island’s real estate market is stable, high demand contrasts with a lack of good offerings, and inflation is a major driver of further price increases across all segments. In the last six months alone (as of May 2022), prices have risen by about 8%, averaging around €3,400 per square meter.

The earlier the purchase, the greater the profit opportunities for buyers and investors. Villas, sea-view apartments, and detached houses offer the most value. These properties not only benefit from the growing market but also from medium- or long-term rentals.

The Most Popular Properties on the Market

While international demand for properties remains high, the search and selection criteria have shifted over the past two years. Previously, buyers often focused on new builds, mid-floor apartments, and penthouses. Since late 2021, buyers are more interested in ground-floor apartments with private gardens, plots with completed construction plans, or detached houses with renovation potential. The strongest demand is for new-build properties, though most projects started in 2022 are already sold out, and projects in the initial stages are often reserved. There is also increased demand for villas, private houses, and townhouses in the premium segment, raising the average purchase price from €500,000 to €860,000 despite fewer transactions overall.

The real estate experts at FALC Real Estate Mallorca constantly monitor the market and its trends. If you want to buy a finca, villa, apartment, or country house, our specialists are happy to help. We also support you with our expertise when selling property, helping you accurately assess your property and sell it at the best price. Take a look at our real estate portfolio and find your dream property in Mallorca!