Real estate market in Mallorca: continued rise in prices despite the crisis

Mallorca is experiencing notable growth in real estate, where luxury property prices have increased by 13% in 2023, reaching an average price per square meter of over 10,000 euros. This finding, from a market study carried out by the Steinbeis Transfer Institute in collaboration with Porta Mallorquina Real Estate, also highlights a decline in supply, particularly for simple and luxury properties. Despite global challenges, the island's property market appears unresponsive, showing remarkable stability with an average price per square meter for a second home in January 2024 of around 5,800 euros.

Luxury properties, in particular, are increasingly scarce, while the sector continues to witness sustained demand, driven largely by record numbers of tourists visiting the island. This positive trend for the real estate market is also fueled by a correlation between tourism intensity and demand for properties. With price increases showing no signs of slowing down, and forecasts of growing tourist numbers, the Mallorcan real estate market promises to remain dynamic in the years to come.