Mallorca accounts for 27% of Spain's luxury property market

The luxury property market now represents 18% of the total property supply in Mallorca, with rising demand seen in the scenic Serra de Tramuntana region. This area, known for its charming villages such as Deya, Valldemossa, and Soller, has become increasingly popular for its Mallorcan-style villas with stunning views.

When considering Spain as a whole, Mallorca and Malaga together account for over half of the country’s prime property market. Other notable regions include Madrid (9%), Barcelona (7%), Alicante (7%), and Ibiza (6%). The Balearic Islands collectively comprise 34% of Spain’s luxury property market. Despite Mallorca’s strong appeal to domestic and international buyers, the limited availability of land for new developments is driving up property prices. By the end of 2024, the average property price in the Balearics rose by 10.8% year-on-year to €3,187 per square metre. Palma specifically saw prices climb 17.9% in February 2025, reaching €4,636 per square metre.

According to Alexander Marcos Walker, Director of Lucas Fox Mallorca, the island's luxury market is thriving due to its ideal lifestyle conditions, often at a competitive cost for international clients. The region's warm climate, striking coastline, and cultural richness make it particularly appealing. Walker emphasises that promoting new property developments is key to meeting growing demand, boosting the local economy, and sustaining this upward trend in the luxury sector.

German buyers have maintained their position as the leading investors in Mallorca's luxury property market. However, there has been a noticeable increase in American buyers entering the scene. Regarding buyer motivations, 64% of wealthy investors are seeking a second home, 29% are purchasing for primary residence purposes, and 7% are investing to generate returns.