Market Update
Balearic Islands: Half-Year 2025
Overview Balearic Islands
The Balearic housing market delivered another strong performance in the first half of 2025, consolidating its reputation as one of Europe’s most resilient and desirable real estate destinations. According to figures from the Balearic statistics office (IBESTAT), home sales across the islands totalled 7,313 in the period—slightly above the ten-year average and among the highest half-year results on record. This confirms that the post-pandemic “soft landing” has given way to a period of stable, sustainable growth. Mallorca once again accounted for the lion’s share of activity, while both Ibiza and Menorca posted sales above their long-term averages, underscoring broad-based strength across the archipelago.
A key pillar of the market’s stability is the reliability of Balearic property as a safe investment, with limited building land restricting supply and supporting prices. Yet the shortage of new homes also creates challenges for the region. Encouragingly, the Balearic authority reports a 44% increase in residential construction in the first half of the year, while the Mallorca College of Technical Architects notes a shift in favour of apartments over single-family homes. This change in the housing mix should gradually help ease supply constraints and support the creation of more affordable options in the future.
Engel & Völkers’ own results reinforce the picture of a market underpinned by consistent international demand and steady price appreciation. Our transaction volumes and average sales prices continued to rise across the islands, particularly in the premium segment, as clients demonstrated their readiness to invest more in properties that combine lifestyle appeal with long-term value.
It is also important to stress that the Engel & Völkers Market Report and Update are based on official sources— such as IBESTAT, the Land Registrars, the Housing Ministry, and the Notary Chamber—combined with our own proprietary sales data. This rigorous approach sets our analysis apart. Many other agents who publish market reports rely heavily on property platform data, which can be inconsistent and distorted by duplicated or outdated listings. By contrast, our methodology ensures transparency and reliability, offering clients, investors, and stakeholders a uniquely accurate picture of market conditions.
Taken together, the data show that the Balearics remain a safe haven for lifestyle buyers and investors alike, with robust demand, limited supply, and a clear trajectory of stable, long-term growth.
Balearic Islands - Market Analysis
According to IBESTAT, there were 7,313 home sales in the Balearic Islands in the first half of 2025, a 13% increase year-on.year, and broadly in line with the tenyear average of 7,157. Although activity remains below the extraordinary peak reached in 2022, when the post-pandemic surge lifted the market to record levels, the first half of 2025 still delivered one of the strongest sales figures on record for this period. This underlines how the slowdown since the boom years of 2022–2023 has taken the form of a welcome soft landing rather than a sharp correction. The enduring appeal of the Balearics as a lifestyle destination continues to support demand, particularly at the prime end of the market, where international buyers see the islands as a safe haven combining security, quality of life, and long-term value.
The performance of the Balearic property market in the first half of 2025 highlights the region’s enduring appeal. Although transaction volumes show moderate fluctuations, the steady rise in average prices reflects sustained demand and a clear commitment from buyers—especially for high-quality, well-located homes with strong rental potential. Lifestyle remains a decisive driver, with clients increasingly willing to invest in properties that combine comfort, design, and long-term flexibility. On this basis, we are confident in the outlook for the second half of the year.
Florian Hofer Managing Director Engel & Völkers Balearic Islands
Figure 1: Source: IBESTAT, Period: First half
Number of Sales 10 Year Average
Balearic Residential Property Sales | First Half
+12%
Sales Transaction
Volume E&V Balearics
Engel & Völkers delivered a strong performance in the Balearics during the first half of 2025, underpinned by the region’s resilient housing market. Sales transaction volume rose by 12% year-on-year to 430.9 million euros, while the number of units sold increased by 2.6% to 234. The average price of property sold climbed 9% to 1.84 million euros, reflecting buyers’ readiness to invest more in high-quality homes. For context, average house prices in the Balearics rose by 11.6% in euro/sqm terms between Q2 2024 and Q2 2025, according to the Spanish Land Registrars’ Association. These results highlight stable market conditions, with continuous demand and steady price development across the islands. They also underline the strength of the Engel & Völkers brand, which remains the leading agent for both local and foreign buyers in the upmarket segment. By combining international reach with deep local expertise, Engel & Völkers continues to consolidate its dominance in the premium Balearic property market.
+2.6%
Number of Transactions
E&V Balearics
Foreign buyers remained a cornerstone of the Balearic housing market in the first half of 2025, underscoring the region’s enduring international appeal. According to the latest figures from the Land Registrars’ Association, overseas purchasers accounted for 28% of all transactions — the vast majority from Europe — with German-speaking markets representing more than 40% of foreign acquisitions and the UK 10%.
Engel & Völkers’ own results mirror this picture. In the first half, 57% of sales involved a German-speaking buyer and 12% a British client, while Spanish buyers continued to play a crucial role as the second-largest group overall. This blend of strong international demand alongside resilient domestic activity reinforces the Balearics’ reputation as both a lifestyle haven for overseas purchasers and a secure, longterm market for both local and foreign buyers.
Lifestyle is the dominant driver, though preferences vary by island: in Menorca, overseas buyers are drawn to country houses and frontline villas, often prioritising ETV rental licences; in Ibiza, demand focuses on contemporary villas with boho-chic design, eco-features, and holiday rental potential; while Mallorca attracts both holiday-home seekers and relocating families looking for well-connected, high-quality homes. A growing appetite for sustainable and energy-efficient properties can be seen across the islands, reflecting a wider shift in buyer priorities. These trends
+9%
Average price of property sold by E&V Balearics
highlight the Balearics’ enduring international appeal as a safe haven combining lifestyle, rental prospects, and longterm investment value.
E&V Balearic Sales by Nationality | First Half
German (51%)
Spanish (13%)
British (12%)
Swiss (4%)
Swedish (3%)
Dutch (3%)
Austrian (2%)
French (2%)
Danish (2%)
American (2%)
Other (6%)
The Engel & Völkers data underlines the official figures indicating a stable market situation and steady price development throughout the region.
Figure 2: Source: Company data, Period: First half Number of
Figure 3: Source: Company data. Period: First Half 2025
Mallorca - Market Analysis
Mallorca’s housing market showed renewed strength in the first half of 2025. There were 5,454 home sales, up 12% year-on-year and 1.4% above the ten-year average, signalling a return to sustainable growth. In the first quarter, sales transaction volume rose 15% to 1.3 billion euros, driven by both higher sales and rising prices. Valuations from the Housing Ministry point to price increases of between 10% and 24% across key municipalities, setting the tone for the year. Public data thus confirms a market underpinned by strong fundamentals, with demand and prices moving in a stable, upward direction.
Residential Property Sales | First Half
Number of Sales 10 Year Average
Figure 4: Source: IBESTAT, Period: First half
5,454
Home Sales in the First Half
Source: IBESTAT
Mallorca
Sales Transaction
Volume E&V Mallorca
Number of Transactions
E&V Mallorca +12%
Average price of property sold by E&V Mallorca
Engel & Völkers Mallorca recorded a sales transaction volume of 386.1 million euros in the first half of 2025, up 8.8% on last year. While the number of units sold fell slightly by 3% to 195, the average price per property rose 12% to 1.98 million euros — around 200,000 euros more than in 2024 — demonstrating buyers’ willingness to commit greater resources to secure the right home. The majority of clients continue to focus on second homes, though emerging demand for permanent residences is evident in areas such as Son Vida and Portals, where international families value connectivity, schools and excellent infrastructure. Across the island, holiday homes remain the dominant purchase, often acquired with a view to future relocation. Rustic fincas in Santanyí, turnkey villas in the northeast, and sustainable, design-led properties in Palma Southwest including elegant city residences illustrate evolving buyer priorities. Overall, the company’s results reflect a stable market built on a robust local economy and strong international demand.
Mallorca Residential Property Sales | First Half
Continued strong demand in Mallorca maintains prices and the increase in average spend in this period indicates that clients are increasing their budgets.
Figure 6: Source: Company data, Period: First half
E&V
Figure 5: Engel & Völkers Residential Property Sales in Mallorca, Source: Company Data. Period: First Half.
Menorca - Market Analysis
E&V Residential Property Sales by Location | First Half
Menorca Residential Property Sales | First Half
Menorca registered 920 home sales in the first half of 2025, an annual increase of 5.2% and 3.7% above the ten-year average. This steady performance underlines the island’s balanced market dynamics, with activity firmly in line with historical norms. Demand is driven primarily by lifestyle buyers seeking second residences, particularly country houses with sea views, frontline villas with direct access to the coast, and properties with ETV tourist rental licences, which remain a key value driver. Apartments and smaller detached houses attract local residents, while international buyers tend to favour luxury villas for both private use and investment. Overall, Menorca’s appeal lies in its authenticity, slower pace of life, and natural beauty, which continue to draw overseas purchasers looking for long-term lifestyle assets.
Figure 8: Source: IBESTAT, Period: First half
Figure 7: Engel & Völkers Residential Property Sales in Menorca, Source: Company Data. Period: First Half.
Source: IBESTAT
Ibiza - Market Analysis
E&V Residential Property Sales by Location | First Half
Ibiza Residential Property Sales | First Half
Increase in Q1 Sales Transaction Volume
Ibiza recorded 939 home sales in the first half of 2025, a robust annual increase of 28% and 5% above the ten-year average. This performance highlights the island’s strong international appeal, driven by lifestyle demand and investment potential. Overseas buyers remain focused on second homes with rental income opportunities, making tourist rental licences (ETV) a top priority—particularly for rural properties. Design-led, move-in–ready villas with bohochic or Blakstad-style architecture are especially sought after, alongside modernised fincas that blend tradition with contemporary comfort. Eco-friendly features, wellness amenities, and dedicated home office spaces are increasingly influencing purchase decisions. Sea views, privacy, and coastal locations remain decisive factors, with buyers placing the greatest value on homes that are uniquely “Ibiza” in style while offering strong utility and rental prospects. Overall, the market reflects a vibrant mix of lifestyle aspirations and secure investment drivers.
Figure 10: Source: IBESTAT, Period: First half
Source: IBESTAT
Figure 9: Engel & Völkers Residential Property Sales in Ibiza, Source: Company Data. Period: First Half.
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, the 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: Eduardo Marquez, iStock
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September 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: September 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
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Menorca +34 971 36 92 75
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Ibiza +34 971 31 13 36
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