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Real Estate prices are still rising – despite protests against mass tourism
Mallorca’s real estate market continues to prove its resilience in 2025. Despite growing protests against mass tourism and rising living costs, prices for holiday properties are increasing significantly. This is one of the key findings of the latest market study conducted by the Center for Real Estate Studies (CRES) on behalf of Porta Mallorquina, a brand of Homes & Holiday AG.
The average square metre price has climbed to €6,700, marking a 7.4% increase compared to the previous year. The southwest remains the island’s most expensive region at nearly €9,000/m², while the central region continues to be the most affordable at around €4,550/m².
New developments on the rise – noticeable increase in supply
At the same time, the total supply of holiday properties has risen by almost 8%, with new developments growing particularly fast – they now make up 17% of the total market. In hotspots like the southeast and Palma City, new builds account for up to a quarter of the available listings.
What may come as a surprise: Over one-third of all listings have been on the market for more than a year. This suggests a growing gap between sellers’ expectations and actual market demand – a dynamic increasingly relevant for investors.
Sea view & pool: Luxury remains in demand
Properties with sea views or private pools remain especially sought after. For example, villas with a prime sea view now command over €10,000 per square metre, while a high-quality pool can boost a property’s value by as much as 40% – an important consideration for owners with development potential.
At the same time, social tensions are rising. In 2024, thousands of residents took to the streets to protest against rising property prices and the lack of affordable housing for locals. So far, these concerns have not translated into falling prices – the market remains stable and, in many areas, clearly growth-oriented.
Looking ahead, the outlook remains cautiously optimistic: Depending on the scenario, the study forecasts annual price increases of 3.0% to 4.6% through 2028.
What makes Mallorca so resilient?
In addition to its natural beauty and excellent infrastructure, it’s the emotional connection many buyers have to the island that keeps demand strong. Buyers here rarely think short-term – the purchase of a property is often tied to a lifestyle decision.
The full study offers deep insights into regional trends, property types, price segments, build quality, and development potential – essential reading for buyers, investors, analysts and media professionals alike. Have a look or download it now: