Palma de Mallorca remains a bullish residential market

Palma de Mallorca accounted for 31.5% of the community’s second-hand housing transactions in the first half of this year, according to data from the Ministry of Transport, Mobility and Urban Agenda (MITMA), some 500 fewer operations than in the same period in 2022.

Nevertheless, Palma has a very regular residential market, whether by national or foreign buyers (they account for 34.3% of acquisitions). Prospective owners value its climate, beaches, quality of life and the luxury that also attracts the elite to visit the island every year (it is the holiday destination of the Spanish royal family). In this regard, it is worth noting that the Balearic Islands, together with the provinces of Madrid, Barcelona and Malaga, account for 70% of prime properties, whose prices exceed one million euros, according to Idealista.

The capital is also attractive for real estate investors interested in renting, as yields of approximately 4.3% can be obtained, lower than in other cities due to the high purchase prices, but with the guarantee of a stable market.

The price of housing in Palma de Mallorca stands at 3,917 euros per square metre, according to data from October, the highest ever reached according to the real estate portal. This price is 15.3% higher than a year ago, and a good part of its neighbourhoods have also registered double-digit rises. According to MITMA statistics, the price of housing in Palma is around 70% above the minimum values registered in 2014.

Barrio de Santa Catalina, the largest residential offer in Palma de Mallorca

This area is the main urban nucleus of Palma de Mallorca, the one with the largest offer of properties for sale. It is located next to the port and the seafront promenade with a large number of shops and services (supermarkets, health centres, schools, etc.), the traditional Santa Catalina Market and has excellent road and public transport connections.

In the Santa Catalina – Son Armadans – Maritim neighbourhood, prices have increased by 5.9% annually to 4,976 euros per square metre according to the real estate marketplace, above the average price for the city. Despite maintaining an upward trend, it is the area where prices have risen the least in the capital, having also reached their peak in August this year.

However, if we carry out a more precise search for what we want our new home to be by applying certain filters, the offer is reduced to 8% of the total number of second-hand properties for sale in the whole city. Specifically, only 25 properties have certain characteristics in the Santa Catalina neighbourhood: second hand flat in good condition, 2-3 bedrooms, fitted wardrobes, 2 bathrooms, exterior, with terrace, lift and air conditioning.

If these are the qualities you are interested in for your future home in Palma, be sure to visit these two recently refurbished opportunities for sale in Calle Soler (with the advantage of being delivered fully furnished) and Calle Rossiñol.