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
Where are the best places to invest in Palma de Mallorca right now? Is the Old Town still the top pick, or are areas like Santa Catalina, Portixol, and Son Vida gaining ground? What makes these locations attractive to both local and foreign investors?
We’re often asked these questions because we work directly with notaries, real estate agents, and clients who invest across the island. Our firsthand experience in these markets gives us unique insights into where the real opportunities lie. To save everyone from asking privately, we’ve written this article to share our knowledge broadly.
Our goal is to highlight the hottest markets in Palma de Mallorca and explain why they’re worth your attention in 2025.
If you have suggestions or want us to dive deeper into a specific area, let us know. You shoot an email, we answer within 24 hours.
1) Portixol is popular for its scenic harbor and closeness to Palma's city center, ideal for short-term rental investments
Portixol is a hot spot for property buyers, thanks to its charming harbor and closeness to Palma's city center.
In 2023, property prices in Portixol surged by 20%, highlighting its growing allure over other Mallorca areas. This picturesque neighborhood is not just about looks; it's a smart investment choice.
Short-term rentals are booming here. According to Airbnb, Portixol boasts a 77% occupancy rate in 2023. Imagine your property being booked for 281 nights a year—tourists can't get enough of it!
Location is everything, and Portixol nails it. It's a breezy 25-minute walk from Plaza del Olivar and just 2.2 km from the lush Hort del Rei Garden. This means visitors enjoy both scenic beauty and urban convenience without the hassle.
Portixol's appeal isn't just about numbers; it's about lifestyle. The area offers a unique blend of seaside charm and city life, making it a magnet for those seeking a balanced experience.
Investors are taking note, seeing Portixol as a prime spot for short-term rentals. Its proximity to Palma's vibrant city center makes it a top choice for those looking to capitalize on the tourist influx.
Sources: Heritage Homes Mallorca, Airbtics, Homerun Mallorca
Here is a stunning penthouse in Portixol, offering breathtaking harbor views: exactly the kind of prime location that makes short-term rentals so lucrative in this sought-after Palma neighborhood. (Source: Balearic Properties)
2) Son Vida is favored by luxury buyers for its exclusive golf courses and high-end villas, ensuring strong property value retention
Son Vida is a top choice for luxury property buyers, and it's easy to see why.
With some of the highest property prices in Palma, Son Vida is known for its premium status. Long-time resident Helen Cummins highlights that homes here offer more than just beauty; they represent a lifestyle. The area’s appeal is reflected in its consistent property value appreciation. In 2023, while the island's average property price rose by about 5%, Son Vida saw an impressive 11.2% growth from January 2023 to January 2024.
One of the key attractions in Son Vida is its exclusive golf courses. The area boasts three renowned courses: Son Vida, Son Quint, and Son Muntaner. These courses not only offer a challenging game but also provide stunning views, making them a golfer's paradise. The Son Vida golf course, in particular, has earned the 59Club Bronze Flag Award, a testament to its quality and allure.
For those considering a property investment, Son Vida's strong market performance and luxurious amenities make it a compelling choice. The combination of high-end villas and world-class golf courses ensures that property values remain robust. This area is not just about owning a home; it's about embracing a lifestyle that few places can offer.
Whether you're a golf enthusiast or simply seeking a luxurious retreat, Son Vida offers a unique blend of exclusivity and charm. The area's reputation for luxury and its consistent market growth make it a standout choice for discerning buyers.
Sources: Homerun Mallorca, Golf Sun Holidays, Helen Cummins, Balearic Properties
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) El Molinar is attracting interest for its charming seaside location and rising property values as coastal living becomes more popular
El Molinar in Palma de Mallorca is catching eyes for its charming seaside location and potential for property appreciation.
In 2023, property prices in El Molinar saw a 14.3% increase in price per square meter from the previous year, showing a strong upward trend. This growth is part of a larger pattern in Mallorca, where demand for coastal properties remains high.
Properties priced above €1 million are flying off the shelves, largely due to foreign investment. Buyers from Germany, the UK, and Scandinavia make up about 40% of property transactions on the island, driving this demand.
Mallorca's allure for expatriates and retirees, who often dream of coastal living, further boosts the market in areas like El Molinar. The island's popularity is evident with over 13 million visitors annually, which supports a thriving rental market.
This influx of tourists ensures robust rental yields, making short-term rentals a lucrative investment option. The combination of high demand and strong rental returns makes El Molinar a hotspot for property investors.
As more people seek coastal living, El Molinar's appeal continues to grow, offering both a beautiful location and promising investment opportunities.
Sources: Homerun Mallorca, Yes Mallorca Property
4) La Lonja is popular for its historic architecture and tourist appeal, boosting short-term rental yields
La Lonja's historic architecture makes it a magnet for tourists and a hot spot for property buyers.
In recent years, especially around 2023 and 2024, property prices in La Lonja surged by up to 10%, reflecting its growing appeal. This trend highlights the neighborhood's increasing desirability among investors and homebuyers alike.
One of the key attractions for investors is the high occupancy rates for short-term rentals in La Lonja. Thanks to Mallorca's thriving tourism scene, properties here are rarely vacant, offering owners a steady income stream.
With average rental yields hovering around 6%, short-term rentals in La Lonja are a lucrative option. This makes it an attractive choice for those looking to capitalize on the area's popularity with tourists.
Visitors flock to La Lonja for its stunning mix of gothic, Renaissance, and modernist architecture. The neighborhood is a cultural hub, featuring landmarks like the gothic masterpiece La Lonja, built in 1426, and nearby gems such as the Royal Palace of the Almudaina and the Cathedral.
These architectural wonders not only draw tourists but also contribute to the area's charm, making it a prime location for property investment. The unique blend of history and culture in La Lonja ensures that it remains a top choice for both tourists and investors.
Sources: Homerun Mallorca, Nivia Born Boutique Hotel, Lifestyle Properties Mallorca
5) Son Espanyolet is attractive for its quiet residential vibe and closeness to Palma's amenities, offering stable investment potential
Son Espanyolet is a charming neighborhood that offers a peaceful residential vibe while being close to Palma's bustling amenities.
In recent years, the property market in Mallorca has been on the rise, with property values in Son Espanyolet increasing by up to 10% in 2023. This makes it a solid choice for those looking to invest in real estate.
Families find Son Espanyolet particularly appealing because of its proximity to top-rated schools and healthcare facilities, like the Hospital Universitario Son Espases. This ensures residents enjoy excellent services, enhancing their quality of life.
The neighborhood's quiet charm and closeness to Palma's amenities have attracted not just locals but also international buyers from Germany, the UK, and Scandinavia. They are drawn to the island's unique blend of tranquility and convenience.
Son Espanyolet's appeal is further boosted by its stable investment potential, making it a sought-after location for both families and investors.
With its serene atmosphere and easy access to Palma, Son Espanyolet offers a unique blend of comfort and convenience that continues to attract a diverse range of buyers.
Sources: Mallorca Global Mag, Yes Mallorca Property, Homerun Mallorca
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6) Cala Major is gaining interest for its beachside properties and redevelopment potential, promising future appreciation
Cala Major is quickly becoming a favorite spot for property investors.
In recent years, property prices in Mallorca have been climbing steadily, with an 11% increase in 2024 alone. This upward trend makes Cala Major's beachside properties a smart choice for those looking to invest in real estate with the potential for future appreciation. The area is not just about beautiful beaches; it's about making a sound investment.
The luxury real estate market is also booming, with a 7% rise in sales of properties over €1 million in 2023. Cala Major, with its prime location, is perfectly positioned to benefit from this trend. The potential for redevelopment in the area means properties could see significant value growth, making it an attractive option for those eyeing long-term gains.
International buyers are increasingly interested in the area, accounting for about 40% of property transactions on the island in 2023. Many of these buyers hail from Germany, the UK, and Scandinavia, highlighting the strong international demand for properties in Cala Major. This diverse interest is a testament to the area's global appeal.
Infrastructure improvements are also playing a role in attracting investors. Enhanced road networks and airport facilities are making Cala Major more accessible, adding to its allure. These developments not only improve the quality of life for residents but also make the area more attractive to potential buyers.
With its stunning beachside location and promising potential for redevelopment, Cala Major is a place where investors can expect to see their investments grow. The combination of rising property prices, a strong luxury market, and international interest makes it a compelling choice for those looking to invest in Mallorca's real estate market.
Sources: Lifestyle Properties Mallorca, Road Genius, Home Run Mallorca
7) Es Jonquet is in demand for its unique character and limited supply of traditional homes, ensuring strong interest
Es Jonquet stands out in Palma de Mallorca for its unique charm and limited availability of traditional homes.
Local real estate agents often highlight the scarcity of traditional homes in Es Jonquet, making it a highly sought-after area. This limited supply ensures that demand remains strong, as people are eager to secure a piece of this charming neighborhood.
In January 2024, property prices in Es Jonquet were notably higher than in other areas like Alcúdia and Felanitx. This trend indicates that buyers are willing to pay a premium to enjoy the unique character of Es Jonquet.
The area also boasts high occupancy rates, showing that both buyers and renters find Es Jonquet appealing. This popularity is not just local; international buyers are increasingly drawn to the neighborhood's distinctive charm.
With its limited supply and unique character, Es Jonquet continues to attract interest from those looking for a special place to call home. The combination of these factors ensures that the demand for properties in this area remains robust.
Sources: Balearic Properties, Global Property Guide, Yes Mallorca Property
8) Pere Garau is gaining attention for its affordable prices and gentrification potential, providing attractive entry points for investors
Pere Garau is catching the eye of investors thanks to its affordable property prices and potential for gentrification.
In recent years, especially around 2023 and 2024, real estate transactions in Pere Garau have surged, signaling a growing interest from investors. A prime example is the renovation of the iconic Nuredduna 24 building, where penthouses are fetching high prices even before they're finished.
What makes Pere Garau particularly appealing is its lower property prices compared to other areas in Palma de Mallorca. Here, apartments are priced between 2,000-2,500 euros per square meter, a stark contrast to the 3,000 euros per square meter in other parts of the city. This price gap offers a great entry point for those looking to invest wisely.
The neighborhood is also seeing a wave of development projects, like the transformation of Nuredduna Street and Plaza Columnas into pedestrian-friendly zones. These changes have boosted the area's charm, making it a desirable place to live, just a stone's throw from the city center.
Pere Garau's appeal is further enhanced by its vibrant community and cultural events. The neighborhood is home to a diverse population, and celebrations like the Chinese New Year add to its lively atmosphere. This cultural richness is a key factor in its ongoing gentrification.
For those considering an investment, Pere Garau offers a unique blend of affordability, potential growth, and cultural vibrancy, making it a compelling choice in Palma de Mallorca's real estate market.
Sources: Predatorsl, Mallorca Residencia, Balearic Properties
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.
9) Santa Catalina is booming with its vibrant nightlife and dining scene, attracting young professionals and boosting rental demand
Santa Catalina is buzzing with energy, making it a magnet for young professionals thanks to its vibrant nightlife and dining scene.
With a surge in trendy bars and restaurants, the area has become a hotspot for social activity, drawing in those who crave an active social life. This lively atmosphere is not just about fun; it's also boosting the local property market.
Investors are noticing the potential here, as rental yields are climbing due to the high demand for properties. Young professionals are flocking to Santa Catalina, and this influx is driving up occupancy rates, making it a prime location for real estate investment.
In 2023, tourism in Palma de Mallorca saw a significant uptick, with many visitors gravitating towards areas like Santa Catalina. This increase in tourism is adding to the area's allure, further pushing up property prices and making it a sought-after destination for investors.
Santa Catalina's appeal isn't just about its nightlife; it's about the lifestyle it offers. The area's popularity is reflected in its bustling streets, filled with people enjoying the vibrant scene, which in turn fuels the rental market.
For those considering a property investment, Santa Catalina offers a unique blend of lifestyle and opportunity. The combination of high demand and increasing property values makes it an attractive option for savvy investors looking to capitalize on the area's growth.
Sources: Mallorca Tourism Statistics - How Many People Visit? (2023), Mallorca tourism: Record-breaking April - Majorca Daily Bulletin, Palma de Mallorca - Wikipedia
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.