Dear Reader,
The Balearic Islands continue to stand out as one of the safest and most rewarding places to invest in real estate, offering not only stable long-term returns but also an exceptional quality of life. Situated in the heart of the Mediterranean, the Balearics are somewhat shielded from global crises—a true safe haven where the pressures of the wider world seem to fade. It’s often said that a business leader burdened by challenges in their home market becomes a different person when they arrive here—the Mediterranean lifestyle is a balm for modern-day stresses, offering peace, security, and a sense of wellbeing that’s increasingly hard to find elsewhere.
In a world marked by uncertainty, the stability of the Balearic property market is a major asset. Sales in 2024 remained steady, in line with the previous year, and prices held firm, rewarding owners with above-inflation capital appreciation and an average real return of around 5% per year over the last decade. The market has avoided the sharp peaks and troughs seen elsewhere, instead offering consistent, sustainable growth without the risks of a speculative bubble. Our own results at Engel & Völkers reflect this strength, with strong growth in sales and turnover, allowing us to further consolidate our leadership in the premium segment of the market.
As the pandemic fades into memory, its legacy is clear: the Balearics have emerged as one of its greatest beneficiaries, attracting interest from international buyers, mainland residents, and families seeking a better work-life balance. With today’s technology, living part-time or full-time in the Balearics while working remotely for companies in Frankfurt or Zurich or beyond is not only possible—it’s increasingly common. More families than ever before are choosing the Balearics as a permanent base, with travel times to their home cities often shorter than domestic journeys.
Looking ahead, we see every reason for confidence. Demand remains broad and diversified, and the unique lifestyle, security, and natural beauty of the Balearics continue to attract buyers who value what this region has to offer—not just as an investment, but as a place to live, unwind, and spend precious time with family.
Florian Hofer — Managing Director Engel & Völkers Balearic Islands
& VÖLKERS
23 Property Shops & 1 Commercial Shop
WEST
Deià
Sóller
CENTRAL
Santa Maria Inca
Alaró
SON VIDA & PALMA SURROUNDINGS
Son Vida Mallorca
Menorca
NORTH
Pollensa
Puerto de Pollensa
Puerto de Alcudia
SOUTHWEST
Port d , Andratx
Santa Ponsa
Portals
COMMERCIAL
Palma
PALMA
Palma Centre
Palma Southwest
Palma Beach
NORTHEAST
Artà
SOUTHEAST 2 x Santanyí
SOUTH Llucmajor
Engel & Völkers Locations
Scan QR code for contact details of our real estate shops on the Balearic Islands.
Mallorca
Ibiza Menorca
Ibiza Santa Eulalia
Ibiza
Ciutadella
Mahón
Balearic Islands
Engel & Völkers Highlights
No. 1
Engel & Völkers is the market leader when it comes to selling properties in the Balearic Islands.
35 Years
Engel & Völkers has 35 years of market expertise in the Balearic Islands.
200
More than 200 employees and real estate agents work for Engel & Völkers in the Balearic Islands.
838 M
Engel & Völkers achieved a transaction volume of 838 million euros in the Balearic Islands in 2024.
495
495 sales transactions were recorded by Engel & Völkers in the Balearic Islands in 2024.
800
800 rental agreements were signed by Engel & Völkers in the Balearic Islands in 2024.
20,600
Engel & Völkers received a total of 20,600 new client enquiries in 2024.
3,300+
Engel & Völkers has more than 3,300 properties in various price categories listed in the Balearic Islands.
Key Facts
32%
Almost 32% of the Balearics is protected = approx 47,600 hectares in the region.
U NESCO
Protected status in the Balearics for over 30 years. Biosphere, culture, wildlife and fauna.
70,000
More than 70,000 customers are actively looking for a property in the Balearics with Engel & Völkers.
90%
The majority of the region has fast broadband coverage. 98% of all homes have internet.
Market Analysis
Balearic Residential Property Sales
In 2024, a total of 15,532 residential property sales were recorded across the Balearic Islands (source: Notaries), marking a modest annual increase of 0.6% compared to the previous year. This figure sits just below the ten-year average of 16,098 sales, reflecting a market that has eased
slightly from historic highs but remains fundamentally strong.
Although overall transaction levels have softened compared to the long-term average, the Balearic property market continues to show resilience, with steady demand helping to maintain stability and support prices across the islands.
Figure 1: Source: Notaries, Period: Full Year
Number of Sales 10 Year Average
Number of Balearic Residential Property Sales
Residential Property Sales | Engel & Völkers Balearics
As the leading estate agency in the Balearics with a dominant position in the international high-end segment, Engel & Völkers’ data offers a particularly relevant gauge of trends in this part of the market—often providing a clearer picture than regional public figures. While our strong brand and reputation have helped us outperform the broader market, our sales figures also point to solid growth in the upmarket international segment. In 2024, our sales increased by 18% year-on-year, reaching 495 transactions—42% higher than 2019 and 18% above the ten-year average. Number of Sales 10 Year Average
2: Source: Company data, Period: Full year.
€ 838 M
Sales Transaction Volume E&V Balearics 14% Increase year-on-year
E&V handled 13% of the Balearic sales transaction volume in 2024.
Company data
Sales Transaction Volume | Engel & Völkers
€ 6.7 B
Sales Transaction Volume Balearics
17%
Increase year-on-year
The sales transaction volume in the Balearics has increased by 36% compared to the 10-year average.
Source: Spanish Ministry of Housing. Period: 2024
Figure
Source:
Balearic New Homes Supply
Housing starts, as measured by planning applications, reached their highest level in a decade in 2024— marginally surpassing the previous peak in 2019, before the pandemic slowed new home construction across the
Balearic Planning Applications
region. A total of 3,649 housing starts were recorded in the Balearics (IBESTAT), representing an annual increase of 12% and a 19.5% rise compared to the ten-year average of 3,052. The Balearic Architects’ Association reports an 18% increase in multi-family home construction last year, including affordable housing for local residents.
Balearic House Prices
After a year of relative stability in 2023, last year saw the strongest price growth in the Balearics in a decade. According to Notaries, the average sale price per square metre increased by 15% over the year, contributing to a cumulative rise of 50% over the past five years. The average real return (inflation adjusted) in the last ten years has been around 5%, reinforcing the region’s reputation as a resilient and attractive market for property investors.
Balearic House Price Index vs. Spanish Inflation Index
Figure 5: Source: Notaries / INE. Period: Full year.
Figure 4: Source: IBESTAT, Period: Full year.
Price Index | Engel & Völkers Balearics
The average sale price of properties handled by Engel & Völkers in the Balearics declined by 4% last year to just under 1.7 million euros, primarily due to fewer ultra-high-value sales compared to 2023. While average prices may vary from year to year, the underlying trend remains one of steady appreciation, with Balearic property delivering consistent long-term gains for owners. This is driven by the region’s fundamental market dynamic, where demand consistently outpaces supply. Over a decade our price index has increased by 73%.
Square metre price appreciation in the Balearics
+45%
Increase in 5 years 2019-2024
+85%
Increase in 10 years 2014-2024
Source: Land Registrars
Sales by Market Segment
Housing Ministry data for 2024 indicates a largely stable market, with minimal shifts in the distribution of key buyer segments—local buyers, foreign residents (expats), and foreign non-residents purchasing second homes—though the market share of foreign buyers edged up slightly to 33% in 2024, according to numbers from the Land Registrars’ association.
The most notable change was a 6% decline in transactions involving foreign residents, who primarily purchase primary residences, placing this segment 18% below the ten-year average. In contrast, local buyers remained relatively steady, finishing the period just 1% below the long-term average, while foreign nonresidents—mostly second-home buyers—ended 2% above this benchmark.
Source: Land Registrars
Figure 6: Source: Company Data. Period: Full year.
Balearic Market by Price Bracket
Figure 7: Source: Company Data.
Sales by Foreign Nationality - Engel & Völkers
As the leading agency in the upmarket foreign buyer segment, Engel & Völkers’ sales figures provide a more accurate and timely view of buyer nationality in this niche than public data, which is published later and includes segments less relevant to this analysis. With buyers from over 20 countries, our data shows that German purchasers once again dominated in 2024, accounting for nearly 60% of foreign sales. They were followed by British buyers with 12%, and Swiss and Swedish buyers, each representing 5%. Notably, buyers from the USA are beginning to make their presence felt, capturing a 1% market share.
Sales by Foreign Nationality | Engel & Völkers
German (59%)
British (12%)
Swiss (5%)
Swedish (5%)
Dutch (2.5%)
French (2.5%)
Austrian (1%)
Danish (1%)
Other (12%)
Figure 9: S ource: Engel & Völkers. Period: 2024
Figure 8: Source: Spanish Housing Ministry, Period: Full year.
Spanish Foreign non-resident Foreign resident
Buyers by Nationality | Engel & Völkers
The varying buyer nationalities on each island underlines their different character.
Other Market Inputs
Fiscal
On 1 January 2024, the Wealth Tax burden in the Balearics was reduced—a change we anticipated in last year’s report—and it has proven particularly positive for the high-end segment. This fiscal improvement is expected to continue supporting the market into 2025. The tax-free allowance was raised from 700,000 euros to 3 million euros per person (or 6 millioneuros per couple), regardless of residency status. This policy shift further enhances the Balearics’ appeal to investors and is likely to sustain its positive impact on the region’s real estate market.
Access
Improved and expanding access to the Balearics continues to strengthen the property market by broadening the pool of potential buyers. Each of the three islands is served by an international airport, with increasing flight frequencies, new routes, extended schedules, and a longer season. Tourist arrivals rose by 5% in 2024, and 2025 is expected to be another strong year, driven by growth in specialist tourism and a more
segmented visitor offering. For second-home owners, the ease of access and extended season enhance the appeal of owning a property in the Balearics, making it easier to visit and enjoy throughout the year.
Figure 10:Buyers by Nationality. Source: Company data
Mallorca Menorca Ibiza
Tourist Arrival January - December 2024
651,100 | +12.5%
Denmark | Finland | Norway | Sweden
701,921 | -1,9%
Netherlands
3,575,604 | -3,2%
United Kingdom
301,091 | +8.6%
Belgium
5,029,755 | +9.1%
Germany
1,122,661 | +14.8%
France
3,424,106 | -0.2%
Spain (excl. inter-island travellers)
494,056 | -0.6%
Switzerland
806,213 | +2.3%
Italy
1,678,433
3,667,322 *excl. inter-island travellers
Denmark, Finland, Norway and Sweden
Figure 11: Source:AETIB, Report 12/2024
18,735,677 | +4.9%
Total Tourist Arrivals
G erm any U K S pain*
France I t al y Netherl and s Nothern countrie s* * S wi t zerl and Be lgium
U SA
Mallorca remains one of the most desirable real estate markets in the Mediterranean, offering a unique balance of natural beauty, modern infrastructure, and long-term investment potential. Following the post-pandemic boom, the market has transitioned into a more sustainable phase, marked by steady demand from both local and international buyers. Beyond its financial advantages, Mallorca is prized for its exceptional lifestyle, blending coastal living, cultural richness, and excellent connectivity, making it an attractive choice for homeowners and investors alike.
The island’s lasting appeal is rooted in its outstanding quality of life. It offers an ideal combination of scenic landscapes, first-rate amenities, and a thriving social scene, drawing buyers from across Europe and beyond. Many are looking for a secure and peaceful retreat in an increasingly unpredictable world, while others see Mallorca as a practical and wellconnected base, whether for full-time residence or a second home.
While buyers have become more selective, demand for high-quality properties in soughtafter locations remains strong, reinforcing Mallorca’s reputation for price stability and longterm value appreciation. Engel & Völkers’ experience on the ground reflects this ongoing trend, particularly in the premium segment, where Mallorca continues to attract discerning clients seeking exclusivity and lifestyle appeal.
Looking ahead, the island remains exceptionally well-positioned. With solid market fundamentals, a diverse international buyer base, and an unparalleled Mediterranean lifestyle, confidence in Mallorca’s property market remains high. For those looking for a safe and rewarding investment, as well as an exceptional place to live, Mallorca stands out as an enduringly attractive choice.
Florian Hofer Managing Director
Engel & Völkers Balearic Islands
Pollensa Puerto de Pollensa
Can Picafort
Valldemossa
Port d‘Andratx Santa Ponsa Portals Palma
Puerto de Alcudia Cap Formentor Son Vida Sa Torre
Cala Pi Sa Rápita Son Gual
Cala d‘Or
Cala Ratjada
Market Analysis
Residential Property Sales
In 2024, there were 10,120 residential property sales in Mallorca, according to the Balearic statistics office IBESTAT (based on data from the Land Registrars’ Association), reflecting a 4% year-on-year decline and 3.6% below the ten-year average of 10,499 sales. However, more up-to-date figures from the notaries suggest that sales may have held steady over the year.
This moderation is in line with the broader trend of a soft landing following the 2022 boom, with overall activity remaining close to historic norms. Mallorca’s market stability continues to underline its enduring appeal to both local and international buyers, reinforcing its reputation as a resilient and consistently attractive destination for property investment.
New Homes Supply
Home building improved significantly last year with 2,699 housing starts in Mallorca, representing an annual increase of 18%, also 18% above the ten-year average of 2,286 units. In Mallorca, the construction of homes in multi-family buildings rose by 32% last year, including affordable housing for residents, according to the Balearic Architects’ Association. This uptick in new construction activity reflects a continued, though still inadequate, supply response to the island’s persistent housing demand and growing population.
Figure 12: Source: IBESTAT, Period: Full Year
Figure 13: Source: IBESTAT, Period: Full
Home Sales - Engel & Völkers
Engel & Völkers’ sales in Mallorca rose by 24% year-onyear in 2024, defying the broader market trends reflected in public data. Our transaction volume was 20% above the ten-year average, highlighting our ability to consistently outperform the market. This strong performance further reinforces Engel & Völkers’ position as the leading agency in Mallorca’s high-end property segment.
24%
Engel & Völkers
year-on-year sales increase
43%
Engel & Völkers increase in sales over five years
Residential Property Sales | Engel & Völkers Mallorca
Sales Transaction Volume - Engel & Völkers
The value of sales handled by Engel & Völkers in 2024 rose 17% year-on-year to 776 million euros, marking a level 35% above the ten-year average. This performance highlights the structural shift in the market post 2020, with our average annual transaction volume in the four years since running 70% higher than in the four years prior.
17%
Year-on-year increase in Engel & Völkers sales transaction volume 65% Increase over five years
15: Source: Cimpany
Sales Transaction Volume | Engel & Völkers Mallorca
Property Prices
Land Registry data shows that house prices in the capital have risen by 32% since 2020, averaging 8% annual growth. While this index does not focus specifically on the foreign buyer segment—which tends to favour coastal and inland detached homes—it serves as a reliable barometer of island-wide price trends. Given that over half of Mallorca’s population lives in Palma, the index carries weight. Engel & Völkers’ data confirms similar growth in the upmarket foreign buyer segment, with investors achieving an average annual return of 8% over the past decade, reflecting sustained long-term appreciation.
Mallorca Property Sales by Price Bracket
51% of Engel & Völkers’ sales in 2024 had a price tag of 1 million euros or more, with 7% above 5 million euros.
Figure 16: Source: Land Registrars. Period: Full year.
Figure 17: Source: Company data. Period: Full year.
Buyer Nationality - Engel & Völkers Mallorca
Engel & Völkers’ sales data reflects the company’s strong presence in the upmarket segment, with a significant share of German, British, and Northern European buyers. However, Spanish buyers also accounted for a notable 9% of transactions, highlighting local interest in the premium property market. While these figures are influenced by Engel & Völkers’ client base, they provide a valuable indication of foreign buyer trends in the high-end sector across the island.
Sales by Nationality | Engel & Völkers
German (58%)
British (10%)
Spanish (9%)
Swedish (5%)
Swiss (4%)
Austrian (2%)
French (1%)
Danish (1%)
Dutch (1%)
Other (9%)
Other Market Inputs
Travel & Tourism
Palma de Mallorca Airport is undergoing a major 550 million euros investment to enhance efficiency and modernise its infrastructure, reinforcing its status as one of the Mediterranean’s best-connected airports. PMI currently offers flights to approximately 170 destinations across 32 countries, ensuring seamless access for residents, tourists, and property buyers alike.
Interest in transatlantic travel is growing, with United Airlines expanding its Newark-PMI route by 50% in 2025. From May 22nd to October 24th, the airline will operate four weekly services, extending flights by an extra month compared to previous years.
Palma’s international appeal continues to rise, with Lonely Planet naming the city among the world’s top 30 destinations to visit in 2025. This recognition, along with several new five-star hotel openings this year, and the much-anticipated opening in 2026 of the Mandarin Oriental in the Southwest, is set to further enhance Mallorca’s global reputation as a premier travel and investment destination.
New Infrastructure
Palma is also benefiting from significant infrastructure improvements, further enhancing its appeal for both residents and investors. The revitalised Club de Mar superyacht marina is nearing completion, solidifying Mallorca’s position as a top destination for the luxury yachting community.
Additionally, the commercial centre in the cruise liner area is set to open in Q2 2025, expanding retail and leisure options for visitors and residents.
One of the city’s most transformative projects, the refurbishment of the Paseo Marítimo, is on track for completion by May 2025. This redevelopment will increase pedestrian and green spaces, making Palma’s tree-lined waterfront even more attractive and boosting the desirability of nearby residential areas.
The Plaza Gomila area of Palma is undergoing an exciting revival, driven by significant investment from the Mallorcan family behind the Camper shoe brand. This ambitious regeneration project is transforming the neighbourhood into a vibrant hub of design-led residences, restaurants, and cultural spaces, further enhancing Palma’s appeal as a dynamic, year-round city.
Figure 18: Source: Engel & Völkers
Heat Maps & Property Price by Area
This section provides a detailed analysis of asking price trends for apartments and houses across different locations in Mallorca. Using data collected and analysed by our extensive office network covering the entire island, we present an in-depth look at how pricing evolved in 2023 and 2024. Understanding these trends is helpful for both buyers and sellers, offering valuable insights into which areas are most in demand and where opportunities may exist for those willing to look beyond prime locations.
To enhance clarity, colour-coded maps have been included to visually rank different areas based on buyer demand and price levels. The most sought-after locations, where demand is strong and buyers have higher budgets, are clearly distinguished from emerging or less competitive areas, where affordability and potential investment opportunities may be more attractive considerations.
While prime locations continue to attract high demand, many buyers are finding excellent value in areas further from the traditional hotspots.
Accompanying these maps are average asking price tables, which use the same colour-coding system for easy reference. These tables provide a side-by-side comparison of average price ranges by location over the past two years, helping to illustrate market shifts and trends.
The tables are structured to present apartment prices on the right and house prices on the left, reflecting how different property types have performed in various locations. This clear segmentation allows buyers to gauge affordability and market dynamics in their preferred property category.
Palma’s historic charm and urban Mediterranean lifestyle make it one of the most desirable property markets in Mallorca. Offering year-round living, excellent amenities, and a walkable city centre, it attracts both international buyers and full-time residents seeking convenience and culture in an elegant setting.
Ongoing infrastructure investments are further enhancing Palma’s appeal. The redevelopment of Paseo Marítimo is expanding pedestrian areas and green spaces, improving the waterfront experience, while the upgrading of Club de Mar strengthens the city’s status as a premier lifestyle destination.
The market is also benefiting from rising demand for premium renovated homes in historic buildings, as well as high-end new-build properties in seafront locations. Buyers increasingly seek residences that combine character with modern comforts, ensuring strong demand and price stability for well-located, high-quality properties.
With its unique mix of heritage, modernity, and investmentdriven improvements, the city of Palma continues to be a resilient and attractive market, where prime properties remain in high demand.
Son Vida & Palma Surroundings
Old Town
San Agustín
Playa de Palma
El Arenal
Portixol
Es Molinar
Ciudad Jardín
Gènova
El Terreno
La Bonanova
Bellver
Cala Major
Santa Catalina
Old Town | Playa de Palma | Paseo Marítimo
Palma de Mallorca
Figure 19: Source:Engel & Völkers
Engel & Völkers Shop
Son Vida & Palma Surroundings
Son Vida | Esporles | Puigpunyent
The Son Vida and Palma Surroundings area remains one of the most exclusive and luxurious residential enclaves in Mallorca, attracting high-net-worth buyers seeking privacy, prestige, and premium amenities.
With three world-class golf courses, Son Vida is a top choice for golf enthusiasts, offering a serene setting with stunning views. Its proximity to Palma ensures residents enjoy easy access to the city’s cultural, dining, and shopping options, while still benefiting from the tranquility of a private, gated community.
The area is also highly sought after by families due to its close proximity to top international schools, making it a preferred choice for both full-time residents and relocating professionals.
With its blend of luxury, convenience, and lifestyle appeal, Son Vida and its surroundings continue to command strong demand and resilient property values, particularly for highend villas and contemporary homes in prime locations.
Figure 20: Source:Engel & Völkers
Central
Palma
Son Vida
Establiments
Palma Golf
Golf Son Quint
Arabella Park
Puigpunyent
Esporles Galilea
Sa Font Seca Palmanyola
Son Puig
Engel & Völkers Shop
The Southwest of Mallorca remains one of the island’s most desirable regions, particularly for international families and lifestyle buyers attracted by its high quality of life, excellent infrastructure, and outdoor leisure opportunities.
A family-friendly environment makes this area a top choice for those relocating from abroad. With renowned international schools, a relaxed Mediterranean lifestyle, and first-class amenities, the area offers an ideal setting for families seeking both comfort and convenience.
The southwest has a large concentration of the island’s top international schools and is therefore a popular choice with families. Furthermore, it has some of the island’s top sports facilities from world class golf courses to tennis and padel courts and the leading superyacht marinas of Club de Mar, Puerto Portals, and Port Adriano.
For those seeking an active lifestyle, the Southwest is a haven. It boasts world-class golf courses, expanding padel and tennis facilities, and easy access to water sports and
hiking trails, catering to buyers who prioritise health and outdoor recreation.
With its strong international appeal, high living standards, and outstanding lifestyle offerings, this area of Mallorca continues to be a prime location for property investment and long-term residency.
Puerto de Andratx | Santa Ponsa | Portals Nous
Figure 21: Source:Engel & Völkers
Engel & Völkers Shop
Andratx Sant Elm
Port Andratx
Camp de Mar
Sol de Mallorca Palmanova
Calvià Es Capdellà
Bendinat
West
S on Vid a & Palm a S urrounding s
Cas Català
Costa d‘en Blanes
Costa de la Calma
Santa Ponsa
Port Adriano
Peguera Portals
Mallorca West
Sóller | Valldemossa | Deià
The West of Mallorca is one of the island’s most breathtaking regions, where the dramatic landscapes of the Sierra de Tramuntana meet the Mediterranean Sea. Home to iconic villages such as Deià, Valldemossa, and Sóller, this UNESCO-protected area offers an exceptional blend of natural beauty, culture, and exclusivity.
The region is renowned for its charming traditional villages, where cobbled streets, stone-built houses, and a relaxed pace of life create an authentic Mallorcan atmosphere. Residents enjoy privacy, tranquillity, and spectacular views, along with excellent opportunities for outdoor activities such as hiking, cycling, and sailing.
Driven by strong international demand, the West of Mallorca remains a highly sought-after market for buyers looking for secluded retreats with character and heritage. The appeal of this region extends beyond lifestyle—it also represents a solid long-term investment, with high-quality properties retaining their value due to the limited availability of homes in this protected area.
With its unique blend of heritage, exclusivity, and natural splendour, the West of Mallorca continues to attract discerning buyers looking for prestigious properties in a timeless setting.
Port de Sóller
Deià
Estellencs
Banyalbufar
George Sand Central
Palma Surroundings & Son Vida Southwest
Valldemossa
Biniaraix
Fornalutx
Sóller
Figure 22: Source:Engel & Völkers
Engel & Völkers Shop
Mallorca North
The North of Mallorca offers a highly attractive mix of property types and price ranges, from traditional fincas and modern villas to seafront apartments—all within easy reach of beaches, the coast, and the mountains. This diversity, combined with its natural beauty, makes the region particularly appealing to both holiday home buyers and year-round residents.
One of the north’s key strengths is its outdoor lifestyle, with countless opportunities for hiking, cycling, golf, and water sports. This area maintains a welcoming “family feel” and rarely feels overcrowded, even in peak season, adding to its appeal for those seeking space, nature, and tranquillity.
The region also benefits from excellent infrastructure, located just 45 minutes from Palma and the airport, with convenient access to an international school, private hospital, golf courses, and marinas, making it ideal for both permanent living and second homes. Recent investment has further enhanced the area’s profile, most notably the opening of the Four Seasons Resort Mallorca at Formentor in 2024. This world-class development has brought an
influx of affluent international visitors, raising the region’s prestige and reinforcing demand for high-quality homes.
Together, these factors support steady demand and resilient price trends in the north, underpinned by a combination of lifestyle appeal, accessibility, and growing international interest.
Pollensa | Puerto de Pollensa | Puerto de Alcudia
Figure 23: Source:Engel & Völkers
Engel & Völkers Shop
Santa Margalida
Cala San Vicente
Escorca
Pollensa
Puerto de Alcúdia
Alcanada
Sa Pobla
Búger
Muro
Son Serra de Marina
Can Picafort
Playa de Muro
Campanet
Formentor
Alcúdia
Central West
Northeast
Puerto de Pollensa
Mallorca Northeast
Artà | Colònia de St. Pere | Canyamel
The Northeast of Mallorca offers a diverse mix of untouched nature, beautiful sandy bays, picturesque harbours, and charming historic towns, making it one of the island’s most scenic and well-rounded regions. From the unspoiled landscapes around Colònia de Sant Pere to the golden beaches near Capdepera and the authentic old-town charm of Artà, the area blends natural beauty with a rich cultural heritage.
A key attraction is the region’s outstanding lifestyle and sports facilities. The Rafa Nadal Tennis Academy in Manacor is a world-renowned training centre, while five excellent golf courses cater to enthusiasts seeking a highquality golfing experience. Additionally, the northeast boasts some of Mallorca’s best cycling and hiking routes, drawing outdoor lovers who appreciate the area’s breathtaking landscapes and well-maintained trails.
With a mix of coastal and countryside properties, the market appeals to buyers looking for a peaceful retreat with access to outdoor activities and modern amenities. Whether it’s a seafront villa, a historic townhouse, or a
countryside finca, the northeast offers strong investment potential, combining authentic Mallorcan charm with a vibrant yet relaxed lifestyle.
Porto
Colònia de St. Pere
Figure 24: Source:Engel & Völkers
Engel & Völkers Shop
Mallorca Central
The central region of Mallorca offers an authentic Mediterranean lifestyle, with traditional villages set against stunning countryside and the backdrop of the Sierra de Tramuntana. This area appeals to those seeking tranquillity and space, while still enjoying modern comforts and excellent connectivity.
One of its key advantages is its great infrastructure and quick access to Palma, making it an ideal choice for year-round living. Residents can enjoy the peace of village life while remaining close to the capital’s shopping, dining, and cultural attractions.
Demand is strong for traditional stone fincas, renovated townhouses, and new-build country houses, offering a blend of heritage and contemporary comforts. Buyers are drawn to the relaxed lifestyle, natural beauty, and strong sense of community that defines the region.
A new five-star hotel opening in Alaró is expected to raise the profile of this charming region, further enhancing its appeal among buyers looking for a traditional setting with increasing investment potential.
With its authentic charm, accessibility, and growing appeal, central Mallorca remains a highly desirable destination for those looking for a peaceful retreat with long-term investment potential.
Puntiró
Maria de la Salut
Algaida
Mancor de la Vall
Marratxí
Santa Maria | Alaró | Selva | Binissalem
Figure 25: Source:Engel & Völkers
Bunyola
Algaida
Engel & Völkers Shop
Mallorca Southeast
Santanyí | Portocolom | Cala Llombards
The Southeast of Mallorca is one of the island’s most picturesque regions, known for its authentic villages, charming coastal towns, and beautiful natural landscapes. With gentle hills, sweeping sea views, and some of the island’s most stunning bays (calas), the area offers an exceptional quality of life. Highlights include the famous Es Trenc beach, with its Caribbean-style white sands and turquoise waters, the iconic Caló des Moro, and several protected nature parks, which preserve the region’s unspoilt beauty.
The area is dotted with pretty harbours and marinas, adding to its appeal for boating enthusiasts and those seeking a relaxed, waterside lifestyle. Santanyí is a major hotspot, attracting both locals and international visitors with its renowned weekly market on Wednesdays and Saturdays, vibrant atmosphere, and selection of stylish boutiques, cafés, and restaurants.
The Rafa Nadal Academy and International School, located within easy reach, has become an increasingly important demand driver, drawing families who value both education
and sporting excellence, as well as buyers seeking homes nearby for convenient access.
The property market here is defined by beautiful fincas, firstline villas, authentic townhouses, and high-quality countryside estates, all set in a tranquil and naturally stunning environment. This combination of lifestyle, landscape, and exclusivity continues to fuel strong demand, helping to support stable prices and long-term investment potential in the Southeast.
Colonia San Jordi
Alqueria Blanca
Santanyí
Sa Ràpita
Ses Salines
Figure 26: Source:Engel & Völkers
Engel & Völkers Shop
| Cala Blava | Son Verí Nou
The South of Mallorca offers nearly 50 km of stunning coastline, with panoramic views over the Bay of Palma, making it a highly attractive area for both residents and investors. Its proximity to Palma and the airport ensures year-round convenience, making it an ideal choice for those looking to live on the island full-time, as well as buyers seeking strong investment potential with excellent value for money.
The region boasts a diverse property market, catering to a wide range of preferences. Buyers can choose from luxurious seafront villas with breathtaking views, traditional townhouses in charming villages, or peaceful countryside estates surrounded by nature. This variety, combined with the area’s accessibility and natural beauty, ensures continued demand for properties in the south.
With its perfect balance of coastal scenery, convenience, and affordability, the south of Mallorca remains an appealing destination for those looking to enjoy Mediterranean living while benefiting from solid investment opportunities.
Bahía Azul
Bahía Grande
Cala Pi
S‘Estanyol
Sa Torre
Son Verí Nou Puig d'en Ros Southeast
Central Palma
Llucmajor
Maioris Décima
Cala Blava Tolleric
Llucmajor
Mallorca South
Figure 27: Source:Engel & Völkers
Engel & Völkers Shop
Rentals
NORTH
Long term rentals
Apartments: € 2,500 - 3,000 / month
Villas: € 2,000 - 15,000 / month
Holiday Rentals
Villas: € 1,500 - 45,000 / week
WEST
Long term rentals
Apartments: € 1,500 - 2,000 / month
Houses: € 2,000 - 5,000 / month
Holiday Rentals
Villas: € 4,500 - 30,000 / week
SOUTHWEST
Long term rentals
Apartments: € 2,000 - 2,500 / month
Villas: € 4,000 - 40,000 / month
Holiday Rentals
Villas: € 15,500 - 19,500 / week
Long term rentals
Apartments: € 2,500 - 3,000 / month
CENTRAL AND SOUTH
Long term rentals
Apartments: Ø € 1,800 / month
Fincas: € 4,000 - 15,000 / month
SOUTHEAST
Long term rentals
Apartments: € 1,500 - 4,500 / month
Fincas: € 2,500 - 10,000 / month
PALMA
Long Term Rentals
• Try living in Mallorca before buying
• To have a base for holidays
• Permanent living - children in school
Must haves
• Remote working Fast internet Pool A/C Terrace
Palma de Mallorca
Old Town | Playa de Palma | Paseo Marítimo
• Demand mainly for 1-2 bedroom apartments
• Increased interest from younger working professionals with a digital nomad visa
• Preferred locations: Palma Centre and next to the beach
North
Pollensa | Puerto de Pollensa | Puerto de Alcudia
• Trend to rent for longer increasing YOY
• Requested properties: houses with a pool near a beach or an international school, close to amenities, pets friendly
Southeast
Santanyí | Portocolom | Cala Llombards
• Demand for seaside and rural locations
• Increasing interest in townhouse rentals to be part of a village community
Holiday Rentals
• Average holiday rental is 7 - 14 days
• Demand for seaside villas / countryside fincas
• All properties have an official ETV licence
• Offering a range of bespoke concierge services
West
Sóller | Valldemossa | Deià
• Main nationalities:Americans, Scandinavians, British, Germans, and Canadians
• Most requested areas are villages within walking distance to restaurants, or near the sea such as Sóller and Deià or nearby
North
Pollensa | Puerto de Pollensa | Puerto de Alcudia
• Main nationalities: German, British, and Spanish
• Most requested areas close to the coast/beach, surroundings Puerto Pollensa, Puerto Alcudia, Playa de Muro, properties with walking distance to all facilities
Central and South
Santa Maria | Alaró | Binissalem | Marratxi | Son Verí | Llucmajor
• Focus on apartment rentals mainly in the south and houses in the central areas
• Preferred areas include: Santa Maria, Alaró, Binissalem, Marratxi, Selva, Son Verí, and Llucmajor
Southwest
Port Andratx | Santa Ponsa | Portals
• High demand for luxury rentals throughout the area
• New nationalities coming into the rental market, such as: American
West
Sóller | Valldemossa | Deià
• Demand increased by 30% YOY
• More nationalities coming into the market including American and Canadian
Must haves
Security and privacy
Southwest
Sea view
Proximity to restaurants
Port Andratx | Santa Ponsa | Portals
Pool
• Offering premium luxury villas and estates specifically catering to international HNWI who demand:
- Privacy, security, and a sea view
- Exclusive services: private chef, housekeeper, daily cleaning, private chauffeur, helicopter / private jet transfer, and personal concierge service
• Ultra premium retreats from 85,000 - 120,000 euros per week
• Demand for rentals with direct access to the sea
• Properties range from 4-14 bedrooms
• Delivering top “hotel” service
Engel & Völkers Mallorca Commercial
Business confidence in the Balearics has outperformed the Spanish average for the last two years, helping drive the local economy to one of the highest growth rates in Spain, and the Balearic’s economic performance has been consistently above the Spanish average in recent years, with forecasts continuing to place it ahead of national growth rates. Against this background the commercial real estate sector maintained its positive momentum in 2024, building on the robust performance of previous years. The market demonstrated resilience and steady growth, underpinned by several key factors driving demand across multiple property segments.
Sector-Specific Developments
Tourism and Hospitality
Mallorca’s thriving tourism sector continued to fuel commercial property demand, driven by a decade-long increase in visitor numbers and sustained growth in the post-pandemic period. This surge in tourism has prompted increased investment in boutique and high-end hotels, further enhancing the island’s accommodation offering. Engel & Völkers estimates that there are approximately 2000 hotels in the Balearics plus world class gastronomy and a leading service industry. Although investor opportunities are scarce there is strong demand from Spanish and international investors. As seen in recent years
by leading international hotel brands such as Four Seasons and Mandarin Oriental.
Most investment opportunities are strictly off market and this is where the Engel & Völkers Commercial team is able to assist the investor and progress confidential discussions at all levels. Buyers are predominantly Family Offices, Investment Funds, and Hoteliers, with Spanish, German, British, and Swiss investors leading the way.
The current market environment presents a compelling opportunity for hotel investment. Since 2021, room rates have increased by an average of 10-20% per year, reflecting robust demand and Mallorca’s enduring status as a premier tourist destination. This upward trend in pricing and occupancy levels continues to support strong revenue potential for investors.
Engel & Völkers Commercial specialises in small and mediumsized hotels, with a particular focus on boutique properties, which continue to attract strong interest from family offices and private investors. A notable example is the successful sale of Reserva Rotana Hotel in Manacor in 2024, a transaction fully managed by Engel & Völkers Commercial. The team is now actively advising on the hotel’s repositioning strategy, further demonstrating the division’s expertise in supporting clients throughout the entire investment cycle.
Commercial Spaces
Demand for commercial spaces, including offices, warehouses, and industrial estates, remained solid throughout 2024. The expanding local economy has driven the need for logistical infrastructure and modern business premises, supporting the development of Mallorca as a growing hub for retail, logistics, and emerging sectors such as technology.
Foreign Investment Trends
The Balearic Islands continued to attract a broad spectrum of international investors, particularly from the UK, Germany, and France. The islands’ blend of natural beauty, high quality of life, and stable market conditions have reinforced Mallorca’s appeal as a secure and attractive destination for commercial real estate investment.
Market Outlook
Looking ahead, the commercial property market in the Balearic Islands is expected to maintain its positive trajectory in 2025 and beyond. Economic growth, combined with sustained demand across the hospitality, retail, and logistics sectors, positions the region as a resilient and rewarding environment for investors.
Further bolstering confidence, Fitur — one of the world’s leading tourism trade fairs — forecasted a record-breaking tourist season in 2025, reinforcing the strong link between Mallorca’s booming tourism industry and the outlook for commercial real estate. With such favorable conditions, Mallorca remains a prime destination for investors seeking long-term value in both general commercial property and tourism-driven assets.
2024 was a positive year for the Menorca property market, building on its strong fundamentals and setting the stage for continued momentum in 2025. Demand remained robust, particularly from Spanish and French buyers, and latterly from British buyers who, pre-Brexit, were the leading international investor group.
Properties located close to the coast, the city centre, with sea views, or close to the beach remain some of the most sought-after by buyers. Quality twobedroom apartments, especially those close to the city centre, are especially popular among lifestyle buyers and last year there was also renewed interest in rural locations.
Beyond property, Menorca’s thriving restaurant scene offers a wide range of dining options to suit all budgets and its cultural scene is vibrant, featuring venues such as the Hauser Wirth Menorca arts center on the Isla del Rey; these elements further enhance the island’s appeal. Buyers are also increasingly drawn to Menorca’s excellent infrastructure and reputation for safety, factors that continue to underpin confidence in the local market and support steady transaction levels.
Committed to sustainability, Menorca was declared a UNESCO Biosphere Reserve in 1993, and in 2023, its Talayotic heritage was recognized as a UNESCO World Heritage Site. The island boasts pristine beaches and exceptional biodiversity, protected under strict regulations that ensure a sustainable balance between development and environmental conservation. These measures not only preserve Menorca’s natural and cultural wealth but also contribute to a stable and well-regulated real estate market. Menorca offers a unique combination of quality of life, stability, and investment opportunities, making it an exceptional place to live and invest.
Gary Hobson Managing Director Engel &
Völkers Menorca
Cala Morell
Cala’n Blanes
Ciutadella
Santandria
Cala Blanca
Cala’n Bosch
Cala Galdana Son Xoriguer
Cap d’Artrutx
Fornells
Cap de Cavalleria Arenal d’en Castell
Addaya
Favaritx
Es Mercadal Sant Tomàs Ferreries
Es Grau
Sa Mesquida Alaior
Es Canutells Son Bou
Cala’n Porter
Mahón
Alcaufar Sant Lluís Es Castell
Cap d’en Font
Binibeca Son Ganxo Punta Prima
Market Analysis
Residential Property Sales
There were 1,720 residential property sales in Menorca in 2024, representing a 3.4% increase year-on-year and 5.8% above the ten-year average of 1,626 sales. This steady performance highlights the island’s resilient housing market, supported by sustained demand from both local and international buyers.
Menorca Property Sales
New Homes Supply
In 2024, there were 265 housing starts in Menorca, representing a significant annual increase of 64% and 36% above the ten-year average of 195 units. While this rise reflects confidence in the market, Menorca’s
construction activity is more volatile than other islands, as strict planning regulations keep overall volumes low, causing spikes in years when one or two larger projects are approved. As a result, individual annual figures can be less indicative of long-term trends, though the overall direction remains positive since 2020.
Figure 30: Source: IBESTAT, Period: Full
Figure 29: Source: IBESTAT, Period: Full Year
107%
Engel & Völkers transaction volume increase in five years
133%
Engel & Völkers sales increase in five years
to € 1 M
Sales by Foreign Nationality | Engel & Völkers
Spanish (32%)
British (15%)
French (12%)
Swiss (9%)
American (6%)
Belgian (6%)
German (6%)
Italian (6%)
Canadian (3%)
Dutch (3%)
Other Developments
Improved connectivity and growing tourism continue to support property demand in Menorca. Mahón Airport now offers flights to approximately 70 destinations across 14 countries, enhancing access for both holidaymakers and second-home buyers. Notably, Spanish visitors have overtaken the British as the island’s largest tourist group,
followed by arrivals from the UK and France—a significant shift from the pre-Brexit period when British tourists dominated. Sea links are also improving, with Menorca Lines set to launch a new fast ferry service in 2025, connecting Alcudia (Mallorca) and Ciutadella in just 55 minutes, further integrating Menorca into the broader Balearic property and tourism ecosystem.
Additionally, the island’s hospitality sector is expanding, with the opening of Son Ermitá and Binidufá in 2025—two restored 18th-century fincas on an 800-hectare estate near Ferreries, offering 21 rooms and suites. These developments reinforce Menorca’s growing appeal as both a premium holiday destination and a desirable location for property investment.
Holiday Rental Market
The holiday rental market in Menorca experienced strong growth in 2024, with Engel & Völkers bookings increasing by 25% year-on-year and up 106% compared to 2019. Demand was driven primarily by guests from the UK, France, Spain, the USA, and Italy.
The average rental stay is typically 1 to 2 weeks, with prices varying significantly depending on location and season. A 3-bedroom villa near the sea is priced from 1,300 euros per week in the low season, rising to 4,000 euros per week in the high season. Larger seafront properties, such as a 6-bedroom villa, command weekly rates starting at 4,500 euros in the low season, reaching up to 14,000 euros per week in peak summer months.
An emerging trend benefiting the rental market is the extension of the traditional holiday season, driven by improved flight and ferry connections during spring and autumn. This has led to increased bookings outside the core summer months, positively impacting rental income potential and further enhancing Menorca’s appeal as a year-round destination.
Menorca Property Sales by Price Bracket
Figure 31: Source: Company data. Period: Full year.
Figure 32:
Source: Engel & Völkers. Period: 2024
Mahón and Surroundings
Centre| Mahón Port | Es Grau & Es Canutells
Mahón is Menorca’s vibrant capital, where natural beauty meets cultural and culinary delights. It represents around 24% of the island’s housing market. With its international airport and the spectacular setting of Port Mahón, the capital offers a unique nautical atmosphere, complemented by a great selection of restaurants, shopping, boutique hotels, and stunning beaches nearby.
Menorca Centre
| Es Mercadal | Migjorn Gran | Alaior
Menorca’s heart is a dynamic mix of history, charm, and a thriving culinary scene. Traditional villages, elegant townhouses, and historic estates embody the island’s slow-living lifestyle, while stunning beaches and coastal resorts make it a prime destination for those seeking Mediterranean beauty and culture.
Mahón
Ferreries
Figure 33: Source:Engel & Völkers
Figure 34: Source:Engel & Völkers
Es Castell | Sant Lluis
This southeastern area of Menorca, characterized by the picturesque port of Es Castell and the charming village of Sant Lluís, exudes a distinct Menorcan atmosphere. Dotted with whitewashed houses in small residential areas and home to alluring beaches with dazzling clear waters, its popularity is further enhanced by its proximity to the international airport and Port Mahón, just 4 km away.
Ciutadella and Surroundings
Ciutadella, located at the western tip of Menorca, stands out for its historic charm, cultural richness, and natural beauty. Whether drawn to its urban elegance or the peaceful retreat of its stunning port area, visitors will find a unique blend of tradition and modernity. The region accounts for approximately 35% of Menorca’s real estate market and offers direct ferry connections to various national and international destinations.
Cala Morell | Cala’n Bosch | Cap d’Artrutx
Figure 35: Source:Engel & Völkers
Figure 36: Source:Engel & Völkers
Ibiza, known as the “White Isle,” remains a highly desirable destination for international buyers drawn to its unique combination of natural beauty, vibrant culture, and luxury living. The island’s real estate market continues to demonstrate resilience and steady growth, fueled by its reputation as a hub for exclusive lifestyles and high-end properties. This enduring appeal ensures that demand for prime real estate in Ibiza remains strong, supporting long-term investment potential.
The Ibiza property market underwent a notable shift that started in 2023, transitioning from a seller’s market to one favoring buyers, a trend that continued through much of 2024. By the second half of 2024 however, signs of stabilisation emerged, as the market adjusted following the post-pandemic boom. Buyer interest increased steadily in the course of the year, particularly in the higher-end segment, with notable interest from British and American buyers boosting demand in this segment.
Prices have become more realistic, better aligning with underlying market conditions. However, quality properties in prime locations remain in demand, keeping values resilient and preventing any significant downward pressure. This recalibration has created an attractive environment for buyers, with 2024 closing on a positive note and early indicators for 2025 suggesting continued momentum.
With buyer activity strengthening towards the end of 2024 and early interest in 2025 remaining robust, there is cause for optimism that the Ibiza market will maintain its positive trajectory in the year ahead.
Ibiza remains a sound investment market, with steady long-term price growth. Strict building regulations limit new supply, protecting property values and reinforcing Ibiza’s status as one of the most secure real estate markets in the Mediterranean.
Florian Fischer Managing Director Engel &
Völkers Ibiza
Cala Gració
San Antonio
Cala Bassa
Cala Tarida
San Agustín
San José
Cala Vadella
Cala Carbó
San Mateo
San Miguel
Santa Gertrudis
San Juan / Portinatx
Cala San Vicente
San Carlos
Santa Eulalia
San Rafael
Cala Llonga
Roca Llisa
Talamanca
Eivissa
San Jordi
Playa d'en Bossa
Es Cubells
Cala Jondal
Las Salinas
Market Analysis
Residential Property Sales
In 2024, there were 1,584 residential property sales in Ibiza, representing a 4.3% decline year-on-year and 2.5% below the ten-year average of 1,624 sales. This slight dip reflects
the market’s adjustment following the sales boom of 2022, aligning with the broader shift towards a more balanced environment favoring buyers. Despite the slowdown, demand remains steady, particularly in the higher-end segment and for quality properties in desirable locations.
Figure 37: Source: IBESTAT, Period: Full Year
Number of Sales 10 Year Average
Ibiza Property Sales
New Homes Supply
In 2024, there were 662 housing starts in Ibiza, reflecting a 14.2% decline year-on-year but 21% above the ten-year average of 548 units. While construction
Ibiza Planning Applications
activity eased compared to the previous year, the overall level remains elevated by historical standards, indicating continued developer confidence in the island’s long-term appeal and the resilience of demand for new-build properties.
Engel & Völkers transaction volume increase over five years
Residential Property Sales
Engel & Völkers sales increase over five years
Ibiza’s property market remains highly international, with no single nationality dominating sales. In 2024, buyers from the Netherlands, Germany, the UK, and Spain each accounted for between 15% and 20% of total transactions, highlighting the island’s broad appeal and diverse buyer profile.
Sales by Foreign Nationality | Engel & Völkers
Dutch (19%)
German (19 %)
British (16%)
Spanish (16%)
Swiss (10%)
American (3%)
Belgian (3%)
Czech (3%)
French (3%)
Other (8%)
33%
Increase of average property price sold by Engel & Völkers over five years
Figure 38: Source: IBESTAT, Period: Full
Figure 39: Source: Engel & Völkers. Period: 2024
Market Observations
Properties with sea views, private pools, and proximity to Ibiza Town, or sought-after areas like Cala Jondal, Cala Conta, and the peaceful north of the island continue to be in high demand, driving activity at the top end of the market. Buyers are drawn to Ibiza for its unique blend of natural beauty, privacy, and high-end lifestyle, making it a reliable and resilient property market.
The Ibiza market is defined by four key property segments:
• Luxury villas and estates: High-net-worth individuals are investing in bespoke, modern villas featuring state-ofthe-art design and sustainable features. These properties command premium prices, reflecting the exclusivity of Ibiza’s lifestyle.
• Rustic fincas: Traditional properties that celebrate Ibiza’s heritage and rustic charm, updated with modern comforts, remain highly sought-after for their unique character.
• Apartments: Stylish apartments in prestigious locations such as the Paseo Marítimo are particularly popular for their marina views, proximity to upscale dining and nightlife, and access to premium amenities, appealing to both professionals and seasonal residents.
• Contemporary developments: New eco-conscious projects featuring cutting-edge design, sustainable technology, and shared community spaces are increasingly attractive to buyers seeking turnkey living with modern convenience.
Market Drivers
Infrastructure improvements are also enhancing market appeal, with work starting in 2025 on transforming the village centre of San Carlos into a pedestrian zone, due for completion by spring 2026. This project is expected to improve the quality of life in the area and boost local property values.
Emerging Trends
• Sustainability: Eco-friendly homes with solar power and green certifications are increasingly prioritised.
• Work-life balance: Remote work continues to drive demand for tranquil properties with dedicated home office spaces.
• Exclusive communities: Demand is growing for gated communities offering concierge services and private amenities.
Travel Developments
The island’s global reputation as a premier lifestyle destination continues to underpin property demand, with new investments in the island’s leisure and hospitality sector further enhancing its appeal. 2024 saw the announcement of [UNVRS]—the world’s first “Hyperclub”, introducing a groundbreaking nightlife concept that is expected to reinforce Ibiza’s status as a leading entertainment hub.
The hotel sector also expanded, with the opening of Casual Bahia Ibiza in Sant Josep de Sa Talaia and Vibra Yamm Hotel in Sant Antoni, reflecting continued investor confidence in the island’s tourism-driven economy.
Access to the island remains a key driver of property demand, with Ibiza International Airport serving approximately 86 destinations across 17 countries during the high season. Spanish, British, and Italian visitors continue to represent the largest tourist groups, ensuring Ibiza remains well-connected to key source markets for both holidaymakers and second-home buyers.
Holiday Rental Market
The holiday rental market in Ibiza remained robust in 2024, with Engel & Völkers’ rental business recording year-on-year growth. Demand was driven by a diverse international client base, led by German clients (30%), followed by Spanish (25%), British (15%), Swiss (15%), French (10%), and Italian (5%) guests.
The average rental stay is typically 1 to 2 weeks, though a trend toward shorter stays is emerging. Rental prices
range from approximately 8,000 euros per week in the low season to 150,000 euros per week during the high season, depending on location, property size, and amenities.
Looking ahead to 2025, demand for high-quality holiday rentals is expected to increase, as Ibiza’s enduring appeal as a luxury lifestyle destination continues to attract both returning and new visitors. Rental yields are particularly high during the tourist season, further solidifying Ibiza’s position as a prime investment hub in the Mediterranean.
Ibiza and Surroundings
• Historic old town
• Culture, gastonomy, boutique shopping
The unique setting of the island’s cosmopolitan capital of Ibiza Town offers a rich and varied cultural heritage. Highlights of this area include the long, sweeping Talamanca Bay, the harbour areas of La Marina and Sa Penya and the historic old town of Dalt Vila.
Dalt Vila | Talamanca | Sant Jordi
Figure 40: Source:Engel & Völkers
Las Salinas | Es Cubells | San José
• Picturesque beach bays
• Pine forests
The south of Ibiza is renowned for its long sandy beaches of Salinas, Es Cavallet and Cala Jondal where its popular beach clubs are located. High-end, luxury properties are located on the Porroig peninsula close to Cala Jondal, in the secure Vista Alegre neighbourhood, and along the long stretch of coastline around Es Cubells. Other highlights include the Las Salinas nature reserve and the Cap Llentrisca peninsula.
Ibiza West
Antonio | San Agustín | Cala Vadella
• Mountainous landscapes
• Beautiful bays
Property is located along picturesque bays and nestled on the hillside, providing breathtaking sea views. Highlights include large stretches of beach around Cala Conta and numerous bays along the west coast.
San
Ibiza South
Figure 41: Source:Engel & Völkers
Figure 42: Source:Engel & Völkers
• Extensive woodlands
• Rural character
The tranquil north offers traditional rural fincas together with villas beside the sea near San Miguel. Secluded properties are located around Portinatx and San Vicente.
• Diverse landscapes
• Roca Llisa golf course
This area offers premium villas on the seafront with a range of luxury apartments between Santa Eulalia and Ibiza Town. The coastline becomes hillier at Cala Llonga and Roca Llisa. San Carlos is still a meeting place for hippies from 60’s and 70’s and has a rich cultural scene.
San Miguel | Portinatx | Santa Inés
Santa Eulalia | Roca Llisa | San Carlos
Ibiza North
Ibiza East
Figure 43: Source:Engel & Völkers
Figure 44: Source:Engel & Völkers
Regulating the real estate sector in the Balearic Islands
The real estate sector in the Balearic Islands is an important contributor to the local economy and a major employer within the local community. In recent years the sector has undergone an important development to help regulate the sector and provide a good level of professional service. Last year, the official Balearic Islands register of real estate agents (ROAIIB) was established. This represents an important step towards transparency and security in this sector which meets the demands of the Balearic Association of National and International Real Estate Agents (ABINI).
The official register of real estate agents
Voluntary registration with the ROAIIB is a key step towards creating a more professional real estate sector. Real estate agents on the register have to document their adherence to ethical and professional standards. The regulation was introduced to curb intrusive and fraudulent practices that previously undermined consumer confidence in real estate transactions. This register
creates a framework that fosters a more professional environment and strengthens consumer rights.
Benefits for consumers and professionals
Registered agents are committed to certain quality standards, thereby creating a safer and more trustworthy environment for buyers and sellers. The visibility of the registration number on all agent communications increases transparency and facilitates the identification of qualified professionals. Additionally, registered agents can take out liability and security deposit insurance to further enhance transaction security. This is particularly relevant in a market with high demand and complex offerings, where a transparent approach helps prevent abuse and ensure service quality.
Engel & Völkers Mallorca is officially listed in the Register of Real Estate Agents of the Balearic Islands (ROAIIB) – with 19 property shops and a commercial office.
Corporate Social Responsibility
Engel & Völkers actively supports local community projects and initiatives financially and physically. We live in one of the most privileged areas of the Mediterranean with its sunny climate, stunning coastlines, landscapes, and nature. Helping protect the beauty of our islands is at the heart of Engel & Völkers’ social mission.
Supporting Preservation
The aim is to preserve, protect, and restore the natural habitats on both islands. Both time and financial resources are allocated by the Engel & Völkers teams to these foundations for local projects.
Mallorca Preservation is a member of the Conservation Collective, which was born in 2017 with the aim of conserving the natural beauty of Mallorca. The organisation provides grassroots fundraising, organisational support, and visibility to approved local environmental projects. It engages young and old, residents and visitors,caring people, and socially
committed companies around one common objective: protecting Mallorca. Together, this local and responsible community is making a positive impact in reversing the damage of human action and reducing the effects of climate change on the island’s fragile ecosystems. With every sale, Engel & Völkers generates a contribution to Mallorca Preservation, supporting the development of an ecoconscious community on the island and encouraging its clients and providers to do the same.
The Menorca Preservation’s key focus is on the Land, Sea, Plastic, and Renewable Energy, aiming to safeguard Menorca’s environment and its unique natural beauty. Engel & Völkers Menorca pledges a yearly donation to the foundation and actively participates in the movement to reduce plastic usage and promote sustainability, engaging in volunteer work within the local community, and supporting charitable initiatives. Advocating for and promoting sustainable practices to preserve Menorca’s resources for future generations.
Definitions & Sources
In the following, you can find useful information and explanations on the terms, graphics and key figures used in this Market Report.
Definitions
• International Buyers: Non-resident and resident Foreign buyers (non-Spanish)
• Sales Transaction Volume: The total value of sales in euros
Sources
This market report is the result of analysis of both internal and external sources of data. Its aim is to help the reader get a better understanding of the Balearic property market today, and the key trends and figures that have defined the market over the last year whilst also breaking down market performance by island. Internal sources include corporate data provided by Engel & Völkers. External sources include statistics published by the Spanish Housing Ministry (Ministerio de Vivienda y Agenda Urbana), the Bank of Spain, the Spanish National Statistical Institute (INE), General Council of Notaries, Land Registrars Association and the Balearics Statistics office (IBESTAT).
To determine the visitor nationalities on the Balearic Islands, the visitor data of the Agency for Tourism Strategy in the Balearic Islands (AETIB) has been analysed.
Imprint
Publisher
Engel & Völkers Balearic Islands
BalearEV GmbH
Masterlizenzpartner der Engel & Völkers Residential GmbH
Monschaustraße 22
D-42369 Wuppertal engelvoelkers.com/mallorca
Managing Director
Florian Hofer
Editor Mark Stücklin
Coordination
Dominique Carroll, Claudia Dubois
Layout
Karina Ivanova
List of Photographers
Cover: Bjorn Agerbeek
Content pages: Albert Bravo, Eduardo Marque, Hristov Image, Karina Ivanova, Laura Tomás Garcia, Xavier Chantrenne, Xisco Fuster.
Before you print
Explore our digital version and contact us for inquiries.
Thank you for participating in sustainable practices with us.
March 2025
All information has been compiled with the greatest possible care, We cannot accept any liability for the accuracy and completeness of this information, We shall not be held responsible for damage of any kind whatsoever incurred either directly or indirectly through the use of this information, with the exception of liability for intent or gross negligence, Last update of information and data published: March 2025, Duplication only with reference to source: Engel & Völkers Balearic Islands (BalearEV GmbH, Registergericht: Amtsgericht Wuppertal, Registernummer: HRB 30296)
Mallorca +34 971 23 85 84
Mallorca@engelvoelkers.com engelvoelkers.com/mallorca
Menorca +34 971 36 92 75
Menorca@engelvoelkers.com engelvoelkers.com/menorca
Ibiza +34 971 31 13 36
Ibiza@engelvoelkers.com engelvoelkers.com/ibiza