Authored by the expert who managed and guided the team behind the Spain Property Pack
Yes, the analysis of Palma de Mallorca's property market is included in our pack
If you are thinking about buying an apartment in Palma de Mallorca, you probably want to know exactly how much you will need to spend, including the purchase price, taxes, and ongoing costs.
This article gives you real numbers, straight from the most reliable sources, and breaks down everything in a simple way so you can budget with confidence.
We constantly update this blog post to keep it accurate, so the figures you see reflect the Palma de Mallorca property market in January 2026.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Palma de Mallorca.
Insights
- Apartment prices in Palma de Mallorca rose by 14.5% in 2025, reaching a record high of around 5,100 euros per square meter by early 2026.
- The price gap between Palma's cheapest and most expensive neighborhoods is almost threefold, ranging from roughly 3,200 euros per square meter in Llevant to over 8,600 euros in Son Vida.
- Non-resident buyers in Palma de Mallorca should plan for a down payment of 30% to 40%, as Spanish banks typically offer lower loan-to-value ratios to foreigners.
- Buyer closing costs in the Balearic Islands run between 9% and 13% of the purchase price, with the progressive ITP transfer tax being the largest expense.
- The Llevant - La Soledat area saw the fastest price growth in Palma de Mallorca in 2025, jumping over 34% year-on-year as buyers sought more affordable entry points.
- New-build apartments in Palma de Mallorca typically cost 15% to 30% more per square meter than comparable resale units, depending on finishes and location.
- Monthly utility costs for an 85 square meter apartment in Palma de Mallorca average around 125 to 175 euros, with electricity being the biggest variable expense.
- Property tax in Palma de Mallorca, called IBI, typically ranges from 400 to 1,200 euros per year for standard apartments, based on cadastral values set by the municipality.
How much do apartments really cost in Palma de Mallorca in 2026?
What's the average and median apartment price in Palma de Mallorca in 2026?
As of January 2026, the average asking price for an apartment in Palma de Mallorca is approximately 407,000 euros (around $440,000 USD), while the median price sits closer to 375,000 euros ($405,000 USD), reflecting a market where luxury waterfront properties pull the average upward.
In terms of price per square meter, Palma de Mallorca apartments average about 5,100 euros per square meter (roughly $5,500 USD or around 475 euros per square foot), making this one of the most expensive cities in Spain outside of Madrid and Barcelona.
Most standard apartments in Palma de Mallorca fall within a price range of 250,000 to 550,000 euros ($270,000 to $595,000 USD), which covers everything from older one-bedroom units in peripheral neighborhoods to renovated two-bedroom apartments closer to the center.
How much is a studio apartment in Palma de Mallorca in 2026?
As of January 2026, a typical studio apartment in Palma de Mallorca costs around 178,000 euros (approximately $192,000 USD), though prices vary significantly depending on location and building quality.
Entry-level to mid-range studios in Palma de Mallorca generally fall between 155,000 and 195,000 euros ($167,000 to $210,000 USD), while high-end or luxury studios in premium areas like Santa Catalina or Portixol can reach 210,000 to 260,000 euros ($227,000 to $280,000 USD).
Studios in Palma de Mallorca are typically compact, ranging from 30 to 40 square meters, which is standard for this property type in Mediterranean cities where outdoor living reduces the need for large indoor spaces.
How much is a one-bedroom apartment in Palma de Mallorca in 2026?
As of January 2026, a typical one-bedroom apartment in Palma de Mallorca costs around 280,000 euros (approximately $302,000 USD), making this the most common entry point for buyers looking to own property in the city.
Entry-level to mid-range one-bedroom apartments in Palma de Mallorca usually range from 245,000 to 320,000 euros ($265,000 to $346,000 USD), while high-end or luxury one-bedroom units in sought-after neighborhoods like Ciutat Antigua or Santa Catalina can reach 330,000 to 400,000 euros ($356,000 to $432,000 USD).
One-bedroom apartments in Palma de Mallorca typically measure between 50 and 60 square meters, often including a small terrace or balcony that adds to the living space in this sunny climate.
How much is a two-bedroom apartment in Palma de Mallorca in 2026?
As of January 2026, a typical two-bedroom apartment in Palma de Mallorca costs around 407,000 euros (approximately $440,000 USD), representing the most common family-size option in the city's apartment market.
Entry-level to mid-range two-bedroom apartments in Palma de Mallorca generally range from 360,000 to 450,000 euros ($389,000 to $486,000 USD), while high-end or luxury two-bedroom units in prime locations like Portixol or Bonanova can reach 480,000 to 650,000 euros ($518,000 to $702,000 USD).
By the way, you will find much more detailed price ranges for apartments in our property pack covering the property market in Palma de Mallorca.
How much is a three-bedroom apartment in Palma de Mallorca in 2026?
As of January 2026, a typical three-bedroom apartment in Palma de Mallorca costs around 559,000 euros (approximately $604,000 USD), though this segment shows wide variation based on location and amenities.
Entry-level to mid-range three-bedroom apartments in Palma de Mallorca usually fall between 500,000 and 620,000 euros ($540,000 to $670,000 USD), while high-end or luxury three-bedroom units in exclusive areas like Son Vida or Genova can reach 680,000 to 950,000 euros ($734,000 to $1,026,000 USD).
Three-bedroom apartments in Palma de Mallorca typically measure between 100 and 120 square meters, often featuring multiple bathrooms and larger terraces suited for families or those who work from home.
What's the price gap between new and resale apartments in Palma de Mallorca in 2026?
As of January 2026, new-build apartments in Palma de Mallorca typically cost 15% to 30% more per square meter than comparable resale units, with the premium varying based on finishes, amenities, and scarcity of new developments in certain neighborhoods.
The average price per square meter for new-build apartments in Palma de Mallorca is approximately 5,900 to 6,600 euros ($6,370 to $7,130 USD), reflecting modern construction standards, energy efficiency, and developer profit margins.
In contrast, resale apartments in Palma de Mallorca average around 5,100 euros per square meter ($5,510 USD), though well-maintained units in desirable buildings can approach new-build prices while older properties needing renovation may sell for significantly less.
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Can I afford to buy in Palma de Mallorca in 2026?
What's the typical total budget (all-in) to buy an apartment in Palma de Mallorca in 2026?
As of January 2026, the typical all-in budget to buy a standard two-bedroom apartment in Palma de Mallorca is approximately 445,000 to 460,000 euros ($480,000 to $497,000 USD), which includes the purchase price plus all taxes and closing costs.
Beyond the apartment price itself, buyers in Palma de Mallorca need to budget for the ITP transfer tax (8% to 11% depending on price), notary fees (600 to 1,200 euros), land registry fees (400 to 700 euros), valuation costs if getting a mortgage (300 to 500 euros), and legal or administrative assistance (1,000 to 2,500 euros).
We go deeper and try to understand what costs can be avoided or minimized (and how) in our Palma de Mallorca property pack.
You can also read our dedicated blog article to understand what you can at different budget levels in Palma de Mallorca.
What down payment is typical to buy in Palma de Mallorca in 2026?
As of January 2026, the typical down payment for buying an apartment in Palma de Mallorca is around 20% to 40% of the purchase price, which means 80,000 to 160,000 euros ($86,000 to $173,000 USD) for a standard 400,000 euro apartment, depending on your residency status and financial profile.
Most Spanish banks require a minimum down payment of 20% for residents, but they often limit lending to 60% to 70% of the property value for non-resident foreign buyers, effectively requiring a 30% to 40% down payment from this group.
To secure the most favorable mortgage terms in Palma de Mallorca, a down payment of 30% or more is recommended, as this typically unlocks better interest rates and shows lenders you are a lower-risk borrower, especially important in the competitive Balearic Islands market.
You can also read our latest update about mortgage and interest rates in Spain.
We made this infographic to show you how property prices in Spain compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
Which neighborhoods are cheapest or priciest in Palma de Mallorca in 2026?
How much does the price per m² for apartments vary by neighborhood in Palma de Mallorca in 2026?
As of January 2026, apartment prices per square meter in Palma de Mallorca range from approximately 3,200 euros ($3,460 USD) in the most affordable areas to over 8,600 euros ($9,290 USD) in the most exclusive neighborhoods, representing almost a threefold difference within the same city.
The most affordable neighborhoods in Palma de Mallorca include Llevant - La Soledat at around 3,227 euros per square meter ($3,485 USD), Son Oliva - Plaza Toros - Camp Redo at roughly 3,581 euros ($3,867 USD), and Rafal - Son Forteza at about 3,583 euros ($3,869 USD), offering entry points for budget-conscious buyers.
The most expensive neighborhoods in Palma de Mallorca include Son Vida at approximately 8,641 euros per square meter ($9,332 USD), Portixol - Molinar at around 7,275 euros ($7,857 USD), and Ciutat Antigua (the Old Town) at roughly 6,516 euros ($7,037 USD), where demand from international buyers drives prices to premium levels.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Palma de Mallorca.
What neighborhoods are best for first-time buyers on a budget in Palma de Mallorca in 2026?
As of January 2026, the top three neighborhoods for first-time buyers on a budget in Palma de Mallorca are Llevant - La Soledat, Rafal - Son Forteza, and Son Oliva - Plaza Toros - Camp Redo, all offering prices significantly below the city average while still providing decent access to central Palma.
In these budget-friendly Palma de Mallorca neighborhoods, typical apartment prices range from 180,000 to 320,000 euros ($194,000 to $346,000 USD) for a two-bedroom unit, making homeownership achievable for buyers who cannot afford the premium waterfront or historic center areas.
These neighborhoods offer practical amenities such as local shops, bus connections to central Palma de Mallorca, schools, and parks, making them suitable for young professionals or small families who prioritize value over prestige.
The main trade-off when buying in these budget-friendly Palma de Mallorca neighborhoods is that buildings tend to be older and may lack elevators or modern insulation, and the areas are generally less picturesque than the historic center or coastal zones.
Which neighborhoods have the fastest-rising apartment prices in Palma de Mallorca in 2026?
As of January 2026, the top three neighborhoods with the fastest-rising apartment prices in Palma de Mallorca are Llevant - La Soledat, Es Forti - Son Cotoner - Son Dameto, and Playa de Palma, all showing double-digit year-over-year growth as buyers seek alternatives to already-expensive premium zones.
Llevant - La Soledat saw prices jump by over 34% year-over-year, Es Forti - Son Cotoner - Son Dameto rose by approximately 21%, and Playa de Palma increased by around 18%, according to December 2025 data that serves as the most recent benchmark for early 2026.
The main driver behind this rapid price growth in these Palma de Mallorca neighborhoods is a spillover effect, where buyers priced out of central and coastal areas are turning to more affordable districts, creating intense demand that outstrips the limited housing supply on the island.
You can also read our latest update about property price forecasts in Palma de Mallorca.
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What extra costs will I pay on top of the apartment price in Palma de Mallorca in 2026?
What are all the buyer closing costs when you buy an apartment in Palma de Mallorca?
The estimated total buyer closing cost for a typical resale apartment purchase in Palma de Mallorca is approximately 35,000 to 55,000 euros ($37,800 to $59,400 USD) on a 400,000 euro property, with the exact amount depending on the purchase price and whether you take out a mortgage.
The main categories of closing costs buyers must pay in Palma de Mallorca include the ITP transfer tax (the largest item), notary fees for the public deed, land registry fees, property valuation if financing, and legal or administrative fees if you hire a lawyer or gestor.
The largest closing cost expense for buyers in Palma de Mallorca is the ITP transfer tax, which is progressive in the Balearic Islands: 8% on the first 400,000 euros, 9% on the next 200,000 euros, 10% on the portion up to 1,000,000 euros, and higher rates above that.
Some closing costs in Palma de Mallorca are negotiable or variable, particularly legal fees where you can shop around for lawyers, and valuation fees where different appraisers charge different rates, while notary and registry fees are regulated by the state and do not vary.
On average, how much are buyer closing costs as a percentage of the purchase price for an apartment in Palma de Mallorca?
The estimated typical percentage of the purchase price that buyers should budget for closing costs in Palma de Mallorca is between 9% and 13%, with most of that going to the ITP transfer tax.
The realistic low-to-high percentage range that covers most standard resale apartment transactions in Palma de Mallorca is 9% for lower-priced properties around 300,000 euros, rising to 12% or more for properties above 600,000 euros where higher ITP brackets apply.
We actually cover all these costs and strategies to minimize them in our pack about the real estate market in Palma de Mallorca.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Spain versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
What are the ongoing monthly and yearly costs of an apartment in Palma de Mallorca in 2026?
What are typical HOA fees in Palma de Mallorca right now?
HOA fees, known as community fees or "gastos de comunidad" in Spain, are very common in Palma de Mallorca and typically range from 60 to 250 euros per month ($65 to $270 USD) for standard apartment buildings, depending on the services and amenities included.
In basic Palma de Mallorca buildings without a lift or pool, monthly HOA fees usually fall between 60 and 120 euros ($65 to $130 USD), while buildings with elevators, gardens, pools, or porter services can charge 150 to 350 euros per month ($162 to $378 USD), and luxury developments may exceed 400 euros ($432 USD).
What utilities should I budget monthly in Palma de Mallorca right now?
The estimated total monthly utility cost for a typical 80 to 85 square meter apartment in Palma de Mallorca is approximately 125 to 175 euros ($135 to $189 USD), covering electricity, water, gas if applicable, and garbage collection.
Depending on apartment size and personal usage, monthly utility costs in Palma de Mallorca can range from 100 euros ($108 USD) for a small, energy-efficient unit to over 210 euros ($227 USD) for larger apartments with heavy air conditioning use in summer or electric heating in winter.
Specific utilities included in the typical monthly budget in Palma de Mallorca are electricity (the largest variable), water and sewage charges, garbage collection fees, and sometimes piped gas, though many older buildings rely on bottled gas or electric cooking.
Electricity tends to be the most expensive utility for apartment owners in Palma de Mallorca, especially during summer when air conditioning runs frequently, and costs can spike to 100 to 140 euros per month ($108 to $151 USD) during peak usage periods.
How much is property tax on apartments in Palma de Mallorca?
The estimated typical annual property tax, called IBI (Impuesto sobre Bienes Inmuebles), for an apartment in Palma de Mallorca ranges from 400 to 1,200 euros per year ($432 to $1,296 USD), depending on the cadastral value assigned to your property by the municipality.
IBI in Palma de Mallorca is calculated by applying the municipal tax rate (typically around 0.5% to 0.9%) to the cadastral value of the property, which is an administrative value set by the Catastro that is usually well below actual market prices.
The realistic range of annual IBI in Palma de Mallorca varies widely: smaller apartments in less central areas may pay 400 to 600 euros ($432 to $648 USD), while larger units in premium neighborhoods can see bills of 900 to 1,500 euros ($972 to $1,620 USD) or more.
If you want to go into more details, we also have a blog article detailing all the property taxes and fees in Palma de Mallorca.
What's the yearly building maintenance cost in Palma de Mallorca?
The estimated typical yearly building maintenance cost for apartment owners in Palma de Mallorca is approximately 300 to 1,000 euros ($324 to $1,080 USD), covering routine upkeep inside your unit such as minor repairs, appliance servicing, and periodic refreshes.
Depending on building age and type, yearly maintenance costs in Palma de Mallorca can range from 200 euros ($216 USD) for newer, well-built apartments to 1,500 euros or more ($1,620 USD) for older units with outdated plumbing, electrical systems, or poor insulation that requires more frequent attention.
Expenses typically included in building maintenance costs in Palma de Mallorca are air conditioning servicing, minor plumbing fixes, repainting, appliance repairs, and addressing humidity issues common in older Mediterranean buildings.
In most Palma de Mallorca buildings, routine exterior and common area maintenance such as lift servicing, facade cleaning, and hallway upkeep are covered by HOA fees, while the yearly maintenance figure above refers to costs inside your individual apartment that you pay directly.
How much does home insurance cost in Palma de Mallorca?
The estimated typical annual home insurance cost for an apartment in Palma de Mallorca is approximately 200 to 400 euros ($216 to $432 USD), covering basic contents, third-party liability, and standard risks like water damage and fire.
Depending on coverage level and property value, annual home insurance costs in Palma de Mallorca can range from 150 euros ($162 USD) for minimal coverage on a small apartment to 600 euros or more ($648 USD) for comprehensive policies on larger units with higher contents values or additional protections.
Home insurance is not legally mandatory for apartment owners in Palma de Mallorca, but it is strongly recommended and often required by mortgage lenders as a condition of financing, making it a practical necessity for most buyers.
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What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Palma de Mallorca, we always rely on the strongest methodology we can, and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| idealista - Palma de Mallorca Price Report | Spain's largest property portal with a transparent, long-running price index. | We used it to anchor Palma's early 2026 asking price per square meter and neighborhood price differences. We treat it as the primary benchmark for what sellers are asking. |
| idealista - Balearics Price Report | A widely cited, transparent monthly dataset for regional pricing. | We used it to cross-check Palma against the wider Balearics market. We also used its December 2025 timestamp as the closest public read for January 2026. |
| Tinsa - Palma de Mallorca Valuations | A major Spanish valuation firm used in mortgage and appraisal processes. | We used it as a valuation-based cross-check against portal asking prices. We used it to keep our estimates realistic and grounded in actual appraisals. |
| Tinsa IMIE Monthly Index | A long-running index from a regulated valuation group, widely referenced in Spain. | We used it to frame the broader 2025 to early 2026 price trend. We used it to justify that early 2026 remains an elevated pricing environment. |
| Fotocasa - Palma de Mallorca Index | A major Spanish portal with a published price index and large listing base. | We used it as a second portal index to triangulate prices. We mainly used it as a consistency check against idealista data. |
| BOE - Balearics Tax Law (ITP/AJD) | The official consolidated legal text from Spain's official gazette. | We used it to calculate real buyer taxes for resale purchases. We used the exact progressive brackets to compute all-in budgets. |
| BOE - Notary Fee Schedule | The official national regulation that sets notary fee rules. | We used it to justify why notary costs are predictable and regulated. We then gave practical ranges for typical apartment purchases. |
| BOE - Land Registry Fee Schedule | The official national regulation that sets land registry fees. | We used it to justify registry costs and keep closing-cost ranges grounded. We included registry fees in our buyer closing costs estimate. |
| Banco de Espana - Consumer Portal | Spain's central bank consumer-education site. | We used it to anchor the typical mortgage finances up to 80% rule of thumb. We then adjusted expectations for non-residents who usually get lower loan-to-value ratios. |
| Santander - Non-Resident Mortgages | A major Spanish bank showing non-resident mortgages are a standard product. | We used it to support that non-resident financing exists but is a distinct track. We used it to motivate a higher down payment budget approach. |
| Sede del Catastro - Valor de Referencia | The official place to consult the cadastral reference value used in taxation. | We used it to explain a common surprise for foreign buyers about tax assessment values. We used it as a practical checklist item before signing. |
| Ajuntament de Palma - Ordenanzas Fiscales | The city's official tax information hub. | We used it as the authoritative source for IBI property tax in Palma. We used it to frame IBI as municipality-driven and linked to cadastral values. |
| Lawants - Spain Property Buying Costs | A reputable law firm guide breaking down all buyer costs in Spain. | We used it to verify our closing cost percentages and fee ranges. We cross-referenced their regional tax comparisons with official sources. |
| Majorca Daily Bulletin - January 2026 Market News | A local English-language news source covering Balearics real estate. | We used it to confirm the 14.5% price rise in Palma during 2025. We used it to validate that prices reached record highs entering 2026. |
| Baleario - Cost of Living in Mallorca | An expat-focused guide with detailed living cost breakdowns for Mallorca. | We used it to estimate utility costs, HOA fees, and insurance ranges. We cross-checked their figures against other cost-of-living sources. |
| Expatistan - Palma de Mallorca Utilities | A crowdsourced cost-of-living database with specific utility prices. | We used it to anchor our monthly utility cost estimates. We compared their figures with local energy pricing data. |
| Cinco Dias - 2025 Electricity Bill Report | A major Spanish financial newspaper reporting on energy costs. | We used it to understand 2025 electricity pricing trends in Spain. We used it to contextualize why utility costs can vary significantly. |
| Balearic Properties - 2025 Buyer's Guide | A local real estate agency with detailed market analysis. | We used it to understand broader Mallorca market trends. We cross-referenced their price growth forecasts with index data. |
| Yes Mallorca Property - 2026 Market Outlook | A local agency publishing regular market analysis and forecasts. | We used it to understand rental market dynamics and new-build availability. We referenced their neighborhood insights for buyer guidance. |
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Spain. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.