Fewer sales, prices that remain high, and a limited supply: The latest market data shows that the real estate market in Mallorca is changing. For buyers and sellers, location, condition, and a realistic valuation are becoming more important.
The real estate market in Mallorca is losing momentum in 2026. Fewer apartments and houses are being sold in the Balearic Islands, while prices remain high. In June, the number of registered apartment sales fell by 11.7 percent compared to the same month last year. Across Spain, however, the number of sales rose slightly by 1.6 percent.
Notary data also show a significant slowdown for the islands. In May, notarized apartment sales in the Balearic Islands were 20.6 percent below the previous year’s figure. At the same time, the price per square meter calculated by notaries rose by 16.3 percent.
Individual monthly figures can fluctuate significantly. Taken together, however, the current statistics show a clear trend: The number of transactions is declining, though this has not yet led to a general decline in prices.
High Prices Despite Fewer Sales
According to data from the Colegio de Registradores, the average registered purchase price in the Balearic Islands in the second quarter of 2026 was 4,311 euros per square meter. Palma reached 4,291 euros. This means the islands remain among Spain’s most expensive real estate markets. Published asking prices are even higher. Idealista reported an average of 5,575 euros per square meter in the Balearic Islands for July 2026, 5.3 percent more than a year earlier. In Palma, the average asking price was 5,540 euros, an increase of 5.8 percent.
These two figures should not be directly compared. The data from the Registradores refers to actual registered sales, whereas Idealista analyzes properties currently on the market. Listing price, market value, and the purchase price ultimately achieved are therefore different metrics. The fact that prices remain stable despite declining sales figures is primarily due to the continued limited supply. In the second quarter, there were five percent fewer properties for sale in the Balearic Islands than a year earlier. In Palma, the decline was three percent.
As a result, there has been no significant supply surplus to date that could trigger stronger downward pressure on prices.
International buyers remain an important factor
In addition, the market in Mallorca is more heavily influenced by international demand than many regions on the Spanish mainland. In the second quarter, foreign buyers accounted for 32.27 percent of all registered real estate purchases in the Balearic Islands. Across Spain, the share was 15.98 percent. This figure covers the entire Balearic Islands and does not indicate whether the property was purchased as a primary residence, a second home, or an investment. However, it illustrates that demand in Mallorca does not depend solely on local incomes and traditional Spanish financing. Particularly in Palma, the southwest, and in established coastal and rural areas, international purchasing power therefore continues to meet limited supply.
However, this does not mean that all submarkets are developing at the same rate.
Significant Differences Within Mallorca
Current asking prices show just how widely the individual regions vary. In Port d’Andratx, the average asking price in July was 10,625 euros per square meter. Portals Nous and Bendinat averaged 9,500 euros, while Calvià averaged 7,469 euros.
In the island’s interior and in larger towns, prices per square meter are significantly lower, though in some cases they are rising more sharply. Inca reached 2,982 euros per square meter, 19 percent above the previous year’s figure. Manacor reported 3,463 euros, an increase of 10.1 percent, while Marratxí €4,099 and a 14.3 percent increase. In Llucmajor, asking prices averaged €4,462 per square meter, 8.9 percent higher than in July 2025.
Such figures should not be viewed in isolation, especially in smaller municipalities. Even changes in the mix of properties listed can significantly shift the average. Nevertheless, the figures show that price increases are by no means limited to Palma and the well-known premium locations.
In any case, the average price per square meter provides only limited insight into the value of a specific property. Micro-location, lot, orientation, view, year of construction, zoning status, amenities, and condition can all cause significant price differences within the same municipality.
In some cases, the time on the market is longer
The time properties spend on the market also suggests that buyers are being more selective. In the second quarter, five percent of the properties sold in Palma via Idealista were sold within less than a week. A year earlier, that figure was seven percent. At the same time, inflated asking prices are sometimes having to be adjusted. For 14 percent of the active listings in Palma during the first quarter, the asking price was reduced. For these listings where the price was actually adjusted, the average reduction was six percent, or approximately 70,950 euros. However, this does not allow for the derivation of an average negotiation margin for the entire market. The analysis applies exclusively to properties whose asking price was lowered during the marketing period. However, it shows that ambitious asking prices cannot always be justified.
This is precisely where the difference between a sought-after property and one that is simply overpriced becomes clearer.
For sellers, preparation is key
For owners, the overall situation in Mallorca remains fundamentally favorable as long as the available supply remains scarce. At the same time, the importance of realistic pricing is increasing. Prospective buyers are no longer looking solely at location and living space, but increasingly also at the costs that arise after the purchase. In older homes, the roof and facade, windows, plumbing, electrical systems, moisture protection, air conditioning and heating systems, pool systems, or energy-efficiency upgrades may require significant investment.
Documentation is also becoming increasingly important. The land register, cadastral records, and the actual building inventory should align as closely as possible. Permits, existing documentation, and any special provisions under building codes should be reviewed early on. For condominiums, the condition of the unit, reserve funds, and planned measures by the homeowners’ association must also be considered. A property that has been thoroughly prepared from both a technical and legal standpoint does not automatically command a higher purchase price. However, it reduces uncertainties that could lead to renegotiations, delays, or the cancellation of a transaction during the due diligence process.
Buyers should compare total costs rather than price per square meter
For prospective buyers, the slower market dynamics mean, in some cases, more time for due diligence and negotiation. Nevertheless, there is no sign of a classic buyer’s market in Mallorca. The supply remains too limited in many segments. Therefore, the price per square meter alone is not the decisive factor. For existing properties, ancillary purchase costs and necessary investments should be included in the calculation from the outset.
A house that appears more affordable at first glance can become significantly more expensive due to renovation needs, technical upgrades, or necessary permitting processes. Conversely, a higher purchase price can make economic sense if the roof, building services, energy supply, or building envelope have already been modernized and major follow-up costs are foreseeable to be avoided. This is why a technical inspection before purchasing is particularly worthwhile for older properties. It provides a more realistic basis for price negotiations and investment planning.
What’s Actually Changing in the Market
The current figures do not indicate a general price collapse in Mallorca. Scarce supply, limited new construction, and continued strong international demand are supporting price levels. What has changed most of all is the pace. Fewer sales, longer marketing times, and price reductions on overpriced properties indicate that the market is becoming more differentiated.
As a result, individual properties are gaining in importance. Location remains crucial—but condition, legal clarity, the need for modernization, and a reasonable asking price are increasingly influencing how quickly and at what price a property can actually be sold.
Data as of August 2026. Sources: Instituto Nacional de Estadística (INE), Consejo General del Notariado, Colegio de Registradores, and idealista/data. Note: The statistical data on transactions and foreign buyers refer to the Balearic Islands as a whole. Mallorca-specific figures are used where corresponding municipal or local data are available.
