Property prices in Mallorca continue to rise in 2026. This is the key finding of the independent and representative market study conducted by the Steinbeis Transfer Institute Center for Real Estate Studies. The study has now been carried out for the twelfth time in cooperation with Porta Mallorquina Real Estate.
The 2026 market study clearly shows that the market is no longer driven by growth alone, but is undergoing a structural transformation across the entire real estate market in Mallorca.
Key findings at a glance:
- Strong increase in property supply in the southeast (+24%) and northeast (+21%)
- Prime sea views and luxury pools are becoming rarer and now account for only around 2% of total supply each
- Lower-end properties are declining significantly (-16%) and now represent just over 6% of the market
- Luxury properties in Mallorca are increasing again (+18%, island-wide share at 4%), particularly in expected areas such as the southwest (+84%)
- Broad-based price growth at a high level: average price per square meter across the island has risen by 9.8% to €7,370, confirming the long-term upward trend as a structural market feature
- Existing properties have increased in price by around 12%, while new developments have risen by only 4%. Despite higher price levels (+24% compared to existing properties), new builds are losing price momentum
Contents
- Data basis of the market study
- Development of property prices in Mallorca 2026
- Since 2015, property prices in Mallorca have increased by approximately 97 percent.
- Over €7,000 per square meter reflects broad-based growth
- €10,000 in the southwest while other regions grow by up to 17 percent
- Around 12 percent price increase for existing properties while new builds grow by only 4 percent
- Only around 13 percent new builds highlight structural supply constraints
- A decline of 16 percent in lower-end properties and an increase of 18 percent in luxury properties are reshaping the market
- Around 15.7 million visitors ensure consistently high demand
- Expected growth of 3 to 4.6 percent indicates stability
- Conclusion: Property prices continue to rise, but the market is becoming more demanding
- Download the Mallorca Holiday Property Market Report 2026
Data basis of the market study
Since 2015, market supply data has been systematically collected, cleaned, and scientifically analyzed. The data basis for 2026 includes listings from twelve different real estate agencies and a total of 5,293 evaluated properties in Mallorca. The study covers approximately 95 percent of the market, enabling a well-founded assessment of current developments as well as reliable comparisons over many years.
Development of property prices in Mallorca 2026
With an average price of €7,370 per square meter and an increase of 9.8 percent, the positive trend in property prices in Mallorca continues in 2026. At the same time, the market is becoming more complex, more differentiated, and increasingly demanding for buyers and investors.
Property prices in Mallorca in 2026 by region
Since 2015, property prices in Mallorca have increased by approximately 97 percent.
A look at recent years highlights the stability of the market. This development is not a short-term effect, but rather a reflection of a structurally strong market. The average annual price increase of around 6.3 percent confirms this long-term dynamic. Even during weaker market phases, Mallorca has proven to be remarkably resilient.
Over €7,000 per square meter reflects broad-based growth
The current price increase is no longer limited to individual hotspots but is evident across large parts of the island. This marks a key difference compared to earlier market phases. While growth used to be concentrated in specific regions, the real estate market in Mallorca is now developing in a more stable and broadly distributed way.
Luxury newly built villa in Port Adriano, right on the seafront by the marina
€10,000 in the southwest while other regions grow by up to 17 percent
The southwest of Mallorca remains the most expensive region on the island and is approaching the €10,000 per square meter mark. Palma is also continuing to develop steadily and is strengthening its role as a key urban real estate location.
At the same time, other regions are gaining increasing importance. The Palma surroundings, the north, and the central part of the island are recording above-average price increases of up to 17 percent. This development shows that demand is becoming more broadly distributed and that new market opportunities are emerging.
Around 12 percent price increase for existing properties while new builds grow by only 4 percent
One of the most significant changes in 2026 concerns the relationship between new developments and existing properties. While existing properties are seeing strong price increases, new builds are losing momentum. This marks a clear shift in the market.
This is also reflected in the assessment of Prof. Dr. Marco Wölfle:
“The market is increasingly moving away from simple pricing rules towards a more differentiated approach, where location, quality, and usage together determine value.”
Only around 13 percent new builds highlight structural supply constraints
The share of new-build properties in Mallorca remains low at around 13 percent of the total supply. At the same time, supply in this segment is declining.
This development highlights a key reality of the market: supply cannot be expanded at will. Limited availability of building land, strict regulations, and lengthy approval processes ensure that real estate in Mallorca remains a scarce asset.
Finca in Mallorca with a holiday rental licence in Porreres
A decline of 16 percent in lower-end properties and an increase of 18 percent in luxury properties are reshaping the market
A closer look at the structure of supply reveals a clear shift. Lower-end properties are decreasing significantly, while luxury properties in Mallorca are on the rise.
At the same time, the strongest momentum is not found in the luxury segment, but in the mid-range and upper segments. This middle market is increasingly becoming the most stable segment of the entire market.
Around 15.7 million visitors ensure consistently high demand
Demand for property in Mallorca remains strong. With approximately 15.7 million visitors in 2025, the island reached another record. Mallorca continues to be one of the most attractive destinations in Europe and a highly sought-after location for second homes.
This combination of quality of life and international demand supports a stable market development.
Expected growth of 3 to 4.6 percent indicates stability
The outlook for the future also remains positive. The study forecasts moderate growth in the coming years, underlining the stability of the market while showing no signs of overheating.
Luxury property in Alcanada, Mallorca, with picturesque views
Conclusion: Property prices continue to rise, but the market is becoming more demanding
Property prices in Mallorca continue to increase in 2026. However, the key change lies in the structure of the market. The market has become more complex and demanding.
Successful decisions today depend more than ever on a differentiated analysis compared to just a few years ago. Mallorca remains one of the most stable and attractive real estate markets in Europe, offering long-term potential and strong value retention.
Download the Mallorca Holiday Property Market Report 2026
Would you like to learn more about the Mallorca real estate market and how property prices are determined in 2026?
The full 2026 report provides a detailed analysis by region, price development, property types, new-build ratios, and quality segments. It is ideal for anyone looking to understand the market and make well-informed decisions, whether as a buyer, owner, or investor.
Take a closer look or download the full report directly:
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