Analysis of the Real Estate Market in Palma de Mallorca: Trends and Opportunities for Investors
The real estate market in Palma
Located on the island of Mallorca, Palma has become one of the most sought-after destinations with a solid and attractive real estate market where property prices continue to rise year after year. With a constant demand, the real estate market in Palma de Mallorca continues to be a benchmark in the sector, offering excellent prospects for those looking to settle down and attracting investors from all over the world.
Price evolution and trends in the real estate market in Palma
The Balearic Islands continue to lead the way in terms of the highest property prices in Spain, with an average price of €4,148 per square metre, followed by Madrid (€3,247 per square metre), the Canary Islands (€2,463 per square metre) and Catalonia (€2,344 per square metre).
Mallorca, the largest of the Balearic Islands, recognised as one of the world’s most popular tourist destinations, has one of the most attractive and solid real estate markets in Europe. Precisely, the price of real estate in Palma de Mallorca is significantly higher than in the rest of Spain, currently standing at €2,049 per square metre.
Despite the global economic slowdown, the city of Palma de Mallorca shows a constant growth in the average price per square metre of housing, reaching its maximum in January 2024, without ceasing to increase year after year. Against this backdrop, the real estate market in Palma de Mallorca continues to show price growth for all types of properties, making it an outstanding destination for investors.
Current trends in the real estate market in Palma de Mallorca
According to Idealista, the average price per square metre of property in Palma de Mallorca in January 2024 is €3,924. If we compare this figure with the price in January 2023, this represents an increase of 13.6% compared to January 2023, just one year ago.
Even during the pandemic, the real estate market in Palma de Mallorca grew positively by 1.2%, registering an average price per square metre of €2,977. But why are house prices in Palma constantly increasing?
This constant growth is due to a set of permanent and situational factors.
Permanent factors that affect the price of real estate in Palma de Mallorca
Its Mediterranean climate, its beaches with crystalline waters, its high quality of life, its scenic beauty and its gastronomy are some of the main reasons why this destination attracts countless buyers from all over the world.
Palma de Mallorca has high levels of security, offering a peaceful and protected environment. The cost of living is relatively low, with many of the food and produce produced locally on the island. In addition, the government of Mallorca has taken steps to increase the investment attractiveness of the region by taking beneficial measures such as offering tax exemptions and other incentives dedicated to investors.
Situational factors affecting the price of the real estate market in Palma de Mallorca
One of the situational factors is that the government of Mallorca has introduced measures to help its residents cope with inflation by reducing the cost of fuel and VAT on food.
Mallorca is among the destinations offering the “Golden Visa” programme, which allows foreigners to obtain a residence permit in exchange for investing in a property or business project. In summary, the constant increase in property prices in Palma de Mallorca is due to a series of permanent and situational factors, among which are its increasing popularity as a tourist destination, its high demand and its high quality of life.
Palma de Mallorca: Price evolution over the last 3 years:
2021 | 2022 | 2023 | 2024 |
2.962 € | 3.134 € | 3.454 € | 3.924 € |
Investment hotspots
According to data from January 2024, Palma de Mallorca stands at €3,924 per square metre, the highest price ever reached according to the real estate portal Idealista. This price represents an increase of 13.6% compared to last year. With the exception of Son Vida, which has fallen by 2.4%, most of the regions continue to register a higher price.
Price of properties in Palma de Mallorca by area:
Price of dwellings | Annual evolution | All-time high price | |
Palma de Mallorca | 3.924 €/m² | + 13,6 % | January 2024 |
Son Vida | 7.320 €/m² | – 2,4 % | September 2024 |
Portixol – Molinar | 6.433 €/m² | + 15 % | December 2023 |
Genova – Bonanova – Sant Agusti | 5.409 €/m² | + 18,1 % | January 2024 |
Ciutat Antigua | 5.403 €/m² | + 3,1 % | July 2023 |
Sta Catalina – Son Armadans – Maritim | 4.986 €/m² | + 2, 8 % | August 2023 |
Santa Catalina, one of the most outstanding neighbourhoods
One of the most outstanding neighbourhoods in this region is the Santa Catalina district, with a price of 5,187 € per square metre and an annual increase of 1.3%, well above the average price in the city. This neighbourhood is located close to the historic centre and the promenade, one of the most sought-after locations in Palma. In addition to its exceptional location, Santa Catalina offers top quality services and excellent connections.
At Homes by Gestilar we have carefully selected the properties that offer the best opportunities in Palma de Mallorca, whether to invest or to start a new life.
Palma de Mallorca, with its positive evolution in prices and its constant attractiveness for investors and residents, is positioned as one of the best options for real estate investment in Europe. Find out more about our selected properties in Palma, ideal both for investment and to start a new life in this exceptional destination.