Mallorca Real Estate Market 2025: Trends & Forecasts

Mallorca has long been one of Europe’s most desirable property markets and 2025 is proving that demand for homes on the island is stronger than ever. With record breaking tourism, limited supply and rising property values, Mallorca continues to attract both lifestyle buyers and international investors.

At Isla Homes, we keep a close eye on the numbers so you don’t have to. ;) Here’s what you should know about the Mallorca real estate market in 2025.

Property prices continue to rise

The average property price in Mallorca now sits at around €4,900 per square meter, with luxury coastal and sea view properties exceeding €7,000 per square meter. In 2024 prime properties saw 5–8% growth and forecasts suggest this trend will continue into 2026.

For buyers this means that investing now not only secures a dream lifestyle but also ensures long-term capital appreciation.

Tourism keeps breaking records

Tourism remains the backbone of Mallorca’s economy and it’s thriving. By July 2025 the Balearic Islands welcomed 8.99 million visitors, generating €11.62 billion in spending, up 4.8% compared to 2024 (INE data).

Mallorca alone represents roughly 72% of those arrivals, with nearly 8 million visitors this year so far. This steady flow of tourists fuels high demand for rental properties and supports the island’s robust property market.

Strong international demand

Mallorca isn’t just loved by locals, international buyers remain a driving force. Roughly 35% of property transactions in the Balearics are made by foreign investors, especially from Germany, the UK and Scandinavia.

For these buyers Mallorca offers a secure, well-connected and lifestyle-driven destination where investment and quality of life go hand in hand.

Limited supply, rising value

Unlike other Mediterranean hotspots, Mallorca has strict building regulations that restrict new developments, especially along the coastline. This scarcity keeps the supply of new properties low, which in turn pushes existing property values higher.

For investors this creates a perfect balance: high demand, limited supply and strong appreciation potential.

Our final thoughts

Mallorca’s real estate market in 2025 proves one thing: this island is more than a holiday destination. It’s an economic powerhouse, a resilient property market and the place where lifestyle and investment meet.

Get in touch with Isla Homes today and let’s start your journey toward owning your dream property in Mallorca.