As we reached the midpoint of 2025, Mallorca continues to prove why it stands among Europe’s premier real estate destinations. The first six months of the year have underscored not only the island’s enduring global appeal but also the robust performance of its property market - particularly in the luxury segment. High demand, rising prices, and a renewed focus on quality over quantity are shaping a dynamic environment full of opportunities for buyers, investors, and developers alike.

At Homerun Brokers, we’ve witnessed firsthand how Mallorca’s unique mix of lifestyle, location, and long-term investment potential continues to attract sophisticated clients from around the world. This mid-year review offers a factual yet optimistic perspective on the market’s performance and outlook.

• Table of contents
• Luxury Property in Mallorca: A Market That Continues to Outperform
• Buyer Profile: Sophisticated, International, Long-Term
• Lifestyle Remains Mallorca’s Strongest Asset
• Supply and Inventory: Selective Scarcity in Key Areas
• Construction Trends: Steady, but Not Fast Enough
• Navigating Bureaucracy: A Known Challenge, Not a Barrier
• Balancing Growth and Affordability: The Big Picture
• Outlook for H2 2025: Strength with Selectivity
• Improving Infrastructure Supports Continued Growth
• Final Thoughts: Mallorca as a Long-Term Asset

The Balearics - and Mallorca in particular - remain at the very top of Spain’s real estate charts. In Q2 2025, the municipality of Calvià recorded an average home price of €1.81 million, according to data from Cadena SER. This figure reflects consistent interest in key areas like Portals Nous, Santa Ponsa, Bendinat, and Costa d’en Blanes.

In Palma, average prices reached approximately €797,000, driven by strong activity in established neighborhoods such as Son Vida, El Terreno, Portixol, and the city’s Old Town.

A deeper look at the luxury segment reveals key insights:

• Nearly 30% of villas on the market now start at €3 million or more.
• Around 50% of all residential listings on the island are priced above €1 million, a clear reflection of the island’s high-value positioning.
• Apartments remain relatively accessible, particularly in Palma and the southwest, with the majority of listings falling between €400,000 and €700,000.

These figures reflect more than simple price inflation - they highlight a market that is maturing and increasingly tailored toward quality-driven buyers. For clients seeking architectural excellence, views, privacy, and proximity to services or the coast, Mallorca is delivering in a big way.

Mallorca continues to attract a discerning international clientele. German, Scandinavian, British, and Dutch buyers remain active, while interest from U.S.-based clients is also growing. Importantly, today’s buyers are not just seeking vacation homes - they’re investing in a lifestyle.

We’re seeing:

• Families relocating full-time for international schooling and remote work flexibility.
• Entrepreneurs and creatives establishing part-time bases to tap into Mallorca’s vibrant wellness and cultural scenes.
• Investors focused on quality assets in prime locations, often acquiring with long-term rental income or resale value in mind.

This shift toward a more permanent, emotionally engaged buyer profile is one of the most encouraging signs for the island’s long-term stability.

At Homerun Brokers, our conversations with clients this year have revealed a clear pattern: buyers are focused on long-term value, lifestyle alignment, and turnkey readiness. Many are prioritizing properties with sustainability features, home offices, or wellness spaces—reflecting broader lifestyle shifts post-pandemic. Several of our clients seek both charm and modern comfort, highlighting the power of thoughtful design in a competitive market.

Beyond numbers and square meters, what truly drives the Mallorca market is lifestyle. Buyers are not just investing in properties - they’re investing in sunshine-filled mornings, access to international schools, Michelin-starred dining, and year-round outdoor living. This emotional connection is why Mallorca remains resilient even during broader economic uncertainty. The island’s lifestyle offering continues to outshine many of its Mediterranean peers, making it a magnet for those seeking both quality of life and long-term property value.

While the market remains healthy, one consistent theme in H1 2025 has been the limited supply of top-tier properties. In key areas - particularly the southwest coast, Palma, and the central Tramuntana region - turnkey villas with modern finishes, sea views, and privacy are in short supply.

This scarcity has led to increased interest in:

• Off-market opportunities (especially in the €5M+ segment)
• High-end renovations of fincas and historic homes
• Inland and emerging areas such as Alaró, Santa Maria, and Santanyí

The shortage of quality listings continues to place sellers in a strong position, and for buyers, it emphasizes the value of working with experienced local advisors who have access to both public and private opportunities.

New construction is progressing, but still lags behind the pace of demand. According to Cadena SER, Mallorca saw just over 1,000 new residential permits issued in the first half of 2025 - a 2% increase year-on-year, but still below historical averages.

However, the renovation sector is thriving, with a 13% year-on-year increase in approved projects. This surge is fueled by:

• The scarcity of buildable plots
• Rising land prices in core locations
• The appeal of modernizing traditional properties with charm and character

This trend reflects a shift toward sustainable reuse of existing buildings, often in areas with rich architectural heritage. It also means that savvy investors can unlock real value by acquiring older properties in prime locations and bringing them up to contemporary standards.

No market is without its complexities, and Mallorca is no exception. Property development, whether new build or renovation, continues to involve lengthy approval timelines and detailed municipal oversight. Permit processing can take 12–24 months, especially in heritage or environmentally sensitive zones.

While this reality requires patience, it also protects the island’s character and ensures long-term value. For clients working with seasoned project managers, architects, and legal advisors, the process is navigable—and often worthwhile.

At Homerun Brokers, we work closely with partners who specialize in guiding our clients through these steps, turning potential friction into smooth progress.

As Mallorca grows in global prestige, there’s increasing discussion around housing affordability for local residents. While luxury buyers are not directly competing with locals for the same properties, the ripple effects of a strong market have raised rents and purchase prices more broadly, samee that can be said for the Marbella market.

Some municipalities are responding with new policies designed to:

• Regulate short-term rentals
• Encourage long-term residential use
• Promote sustainable tourism and protect community integrity

We welcome responsible development and are committed to supporting solutions that keep Mallorca both desirable and livable for everyone. A balanced, respectful approach ensures that the island retains its authenticity - one of the key factors that draws international buyers in the first place.

Looking ahead, we anticipate continued momentum in the second half of the year, with particular strength in:

• Villas in Calvià, Son Vida, and coastal hotspots: Demand remains especially high for homes offering privacy, sea views, and architectural design.
• Modern apartments in Palma: New-build and fully renovated flats in Portixol, Santa Catalina, and Paseo Marítimo continue to sell quickly.
• Historic fincas and countryside retreats: As the lifestyle trend leans toward wellness and connection with nature, rural estates are seeing a renaissance.
• Renovation opportunities: Investors and end-users alike are capitalizing on older homes with strong bones and great locations.

At the same time, we advise clients to act decisively when the right property becomes available. With inventory remaining tight and buyer interest strong, well-positioned homes are unlikely to linger on the market.

Mallorca’s real estate momentum is also supported by improvements in local infrastructure. Upgrades at Palma Airport have enhanced international connectivity, with an increasing number of direct flights to major global destinations such as New York, London, Zurich, and Dubai - making the island more accessible than ever. Meanwhile, municipal investments in roadways and fiber-optic broadband are improving access to more rural and inland areas. These enhancements are expanding the map for buyers, opening up new pockets of opportunity beyond the traditionally saturated coastal zones.

For those considering a purchase, Mallorca in 2025 offers a long-term asset in a stable, in-demand location. Despite occasional headlines about regulation or tourism strain, the fundamentals of the market remain exceptionally sound.
What sets Mallorca apart is its rare combination of:

• Natural beauty and biodiversity
• Rich culture and international accessibility
• World-class architecture and gastronomy
• Commitment to preserving its unique identity

This balance is why demand continues to grow, and why we remain confident in the market’s resilience and future value.
At Homerun Brokers, we’re proud to be part of this exciting chapter in Mallorca’s real estate story. Whether you’re searching for your dream villa, exploring investment options, or considering a development opportunity, our team is here to guide you with integrity, insight, and care.