Current developments in the real estate market in Mallorca and the Balearic Islands
The Balearic Islands have been a popular travel destination for years, attracting tourists from all over the world. But it's not just demand for vacations on the islands that is increasing; demand for real estate in the Balearic Islands, and Mallorca in particular, is also continuing to rise. Data on the real estate balance sheet was published in 2022, showing that the real estate market in Mallorca is booming.
350% increase in turnover in the real estate market
The real estate balance sheet shows an impressive increase in sales in the Balearic Islands. In 2022, real estate worth a total of €7.5 billion was sold. This represents a 350% increase in sales over the last ten years. A particularly strong increase has been recorded in the luxury real estate sector. Rising demand from wealthy customers is leading to ever higher sales prices.
Development of the Balearic Islands compared to other Spanish cities
Compared to other Spanish cities, property prices in Mallorca are relatively high. Nevertheless, investors are very interested in real estate on the island due to the stable market situation and high returns on vacation rentals. Demand for real estate in Mallorca remains strong. In 2022, a total of 18,738 properties found new owners.
Summary of the real estate market in Mallorca
The real estate market in Mallorca and the Balearic Islands continues to boom and has shown impressive growth over the last ten years. There has been a particularly strong increase in the luxury real estate sector. Despite comparatively high sales prices in Mallorca, investors are very interested in real estate on the island due to the stable market situation and high returns on vacation rentals. In total, almost 19,000 properties found new owners in 2022. If you are also planning to purchase a luxury property in Mallorca, we are here to assist you with comprehensive advice on your investment options. Simply get in touch with us. We will be happy to help you.
Real estate market outlook for 2026: expectations and challenges
Although no concrete figures are available for 2023 yet, reports from developers and brokers point to continued price increases in the real estate market. This development is driven by increased costs in construction, energy, materials, and personnel, as well as by the current market situation, in which demand exceeds supply. According to brokers and developers, the upper price segment in particular has seen strong sales figures in the first five months of the year and stable demand, with firm customer appointments and viewings planned for the second half of the year. It is therefore expected that the annual results for 2023 will be at least as positive as those for the previous year.
The political situation in Spain, particularly due to new legislation, is causing uncertainty among investors. A new housing law that disadvantages landlords and proposals to restrict property purchases by foreigners in the Balearic Islands could make investors hesitant, despite likely conflicts with EU law. The upcoming elections in the autonomous regions and for the central government in 2023 are exacerbating this uncertainty, with a neck-and-neck race between left-wing and conservative forces.
