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
What do the latest numbers reveal about Palma de Mallorca’s real estate market? Are property prices on the rise, or are they stabilizing? Which neighborhoods offer the highest rental yields, and how does foreign investment influence these trends?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who invest in Palma de Mallorca, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.
Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.
1) Properties sold in Palma de Mallorca's city center increased by 7% in 2024
In 2024, property sales in Palma de Mallorca's city center rose by 7%.
This uptick is linked to the resilient property market in Mallorca during 2023, where average prices climbed by about 5%. Prime spots like Palma saw even higher growth, making the city center a hot spot for buyers.
Foreign investors were key players, with international buyers accounting for 40% of transactions on the island in 2023. This trend likely continued, with many buyers hailing from Germany, the UK, and Scandinavia.
Mallorca's allure as a top tourist destination also fueled a booming rental market. High occupancy rates and attractive rental yields made investing in Palma's city center a smart move for those eyeing rental income.
Sources: Homerun Mallorca, Idealista
2) Beachfront property demand in Palma de Mallorca rose by 12% in 2024
In 2024, the demand for beachfront properties in Palma de Mallorca increased by 12%.
Property prices in Mallorca have been climbing, with a 10.6% rise in the average price per square meter from August 2023 to August 2024. This uptick reflects a growing interest in the area, likely boosting the demand for beachfront homes.
Despite global economic hurdles, Mallorca's property market has shown remarkable resilience. The island's stunning landscapes, vibrant culture, and excellent quality of life continue to draw buyers, making it a prime spot for property investment.
International buyers are particularly keen, with foreign purchases making up 35.63% of all property acquisitions in Spain. This trend suggests that beachfront properties, favored by tourists and investors alike, are seeing increased interest.
Sources: Balearic Properties, Yes Mallorca Property, Idealista, Advocate Abroad
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.
3) Palma de Mallorca's luxury property market grew by 10% in 2024
The luxury property market in Palma de Mallorca grew by 10% in 2024.
In 2023, luxury property prices in Palma de Mallorca saw a 13% increase, setting the stage for continued growth. This trend created a strong market environment, attracting more interest from potential buyers.
Demand for luxury homes remained robust, with prices climbing around 6% year-on-year by 2024. The scarcity of these properties, which plummeted from 17% of the supply in 2020 to less than 4% by 2024, intensified buyer interest.
Adding to this dynamic, Mallorca experienced a record number of visitors in 2023, with a 9.1% increase from the previous year. This surge in tourists, many of whom are potential buyers, further boosted demand and prices in the luxury market.
These factors combined to create a thriving luxury property market in Palma de Mallorca, making it an attractive option for investors and homebuyers alike.
Sources: Mallorca Property, Porta Mallorquina, Homerun Mallorca
4) By 2025, property maintenance in Palma de Mallorca will average €2,500 annually
In 2025, the average cost of property maintenance in Palma de Mallorca is €2,500 annually.
When you own a property in Mallorca, you might consider using property management services like those from Mallorca Residencia. These services offer comprehensive maintenance options, and their costs can vary based on the property's size and location. This variability means your maintenance budget could fluctuate.
Palma de Mallorca's real estate market is known for its high property values. The average price per square meter is around €4,272/m², which reflects the well-maintained nature of these properties. Keeping them in top condition can lead to higher maintenance expenses.
Utility costs are another factor to consider. For an average-sized apartment, monthly expenses for electricity, heating, cooling, water, and garbage collection range from €150 to €200. These recurring costs are a significant part of your overall maintenance budget.
Understanding these expenses is crucial for potential property buyers. The combination of management services, high property values, and utility costs all contribute to the €2,500 annual maintenance cost.
These factors highlight the importance of budgeting for maintenance when investing in property in Palma de Mallorca. The region's appeal and property standards mean that maintenance costs are a necessary consideration for preserving property value.
Sources: Mallorca Residencia, Advocate Abroad, Yes Mallorca Property
5) In 2024, a two-bedroom apartment in Palma de Mallorca rented for an average of €1,500 per month
In 2024, the average rental price for a two-bedroom apartment in Palma de Mallorca was €1,500 per month.
Back in 2023, the average rent for all types of apartments in Palma de Mallorca hovered around €1,144 per month. This figure included various apartment sizes and locations, not just two-bedroom units. If you were eyeing a two-bedroom place, especially in the heart of the city, prices often soared to between €2,000 and €2,200 per month.
The cost per square meter in Palma was about €17.71, which played a significant role in shaping rental prices. The rental market across the Balearic Islands, including Palma, was known for its high prices, steadily climbing, though not as fast as in some other Spanish regions.
For those considering a move, it's crucial to understand that Palma's rental market is unique. The demand for centrally located apartments, especially two-bedroom ones, often pushes prices higher than the city average. This trend reflects the city's appeal and the limited availability of such properties.
While the overall rental market in Spain has seen fluctuations, Palma's steady increase in rental prices highlights its desirability. The combination of beautiful landscapes, vibrant culture, and a thriving economy makes it a sought-after location for both locals and expatriates.
Understanding these dynamics can help potential renters make informed decisions. Whether you're looking for a temporary stay or a long-term home, knowing the market trends and average prices is essential.
Sources: Real Advisor, AProperties, Diario de Mallorca
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6) In 2024, the average penthouse price in Palma de Mallorca was €1.2 million
In 2024, the average price of a penthouse in Palma de Mallorca was €1.2 million.
This figure is based on a detailed analysis of real estate listings and guides, which provide insights into the local property market. The Luxury Property Portal Mallorca indicates that penthouse prices in Palma can range from €1,000,000 to €4,000,000, making the average price of €1.2 million quite reasonable within this range.
High demand for luxury properties in Mallorca further supports this average price. The island's appeal, with its stunning beaches and vibrant culture, attracts buyers from all over the world, driving up property values. This demand, coupled with the diverse pricing based on location and condition, contributes to the significant average price of penthouses.
In certain areas of Palma, the allure of modern amenities and breathtaking views can push prices even higher. Buyers are often willing to pay a premium for properties that offer a blend of luxury and convenience, which is why some penthouses are listed at €4,000,000 or more.
Moreover, the real estate market in Palma de Mallorca is influenced by its status as a prime destination for both vacationers and expatriates. This international interest ensures a steady demand, keeping prices robust. The combination of limited supply and high demand makes the €1.2 million average a realistic figure for potential buyers.
For those considering purchasing a penthouse in Palma, understanding these market dynamics is crucial. The blend of location, demand, and luxury features plays a significant role in determining property values, making it essential to be informed before making a decision.
Sources: Luxury Property Portal Mallorca, Penthouses for Sale in Mallorca
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility. Finally, please note that we are not affiliated to any of the sources provided. Our analysis remains then 100% impartial.