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- The real estate market in Mallorca is experiencing an increase in average prices to over one million euros.
- In 2025, a house will cost an average of 1.083 million euros, while transactions are declining.
- German buyers dominate the market.
The dream of owning a house in Mallorca is becoming increasingly expensive for German expats. For the first time, the average price of a house sold on the Mediterranean island has exceeded one million euros. In 2025, a house cost an average of 1.083 million euros – compared to 960,000 euros in 2024, according to a market report by real estate agent Dahler based on notary data.
According to the report, roughly one in four houses sold cost at least one million euros. With 12,200 residential properties sold, that means a million-euro villa changes hands every twelve hours.
The most expensive transactions were in the tens of millions. An estate in Alaró changed hands for €22.99 million. In Pollença, a buyer paid €20.65 million for a villa. In March 2026, a property in Calvià was sold for €26.3 million.
Luxury market expands in island center and north
Top prices are now also being achieved in the island’s interior and north. Benjamin Schütze, Head of Expansion & Internationalization at Dahler, sees this as a clear trend: “The fact that prices exceeding 20 million euros have been reached in Alaró in the island’s interior and Pollença in the north shows that such properties are not exclusively found in the well-known southwest.”
German buyers dominate the international market with a share of 48.7 percent in 2024 and 2025. Great Britain follows with 9.9 percent, while Sweden and Italy each account for around 5.1 percent.
The northeast is attracting more and more German buyers.
German buyers are increasingly migrating to the northeast. Artà and Capdepera are currently particularly popular. In Capdepera, the share of German buyers was over 63 percent in 2025, and in Santanyí it was almost 60 percent.
Schütze observes a new “German community” in the northeast: “According to our observations, the desire to emigrate to Mallorca is growing. Those interested are not necessarily looking for top-tier properties. Especially in the northeast, there are plenty of options below the luxury segment.”
Even regular holiday homes and primary residences became more expensive. The price per square meter rose by more than ten percent in 2025 to 3,762 euros. However, demand is slowing the increase.
The middle segment is losing momentum
In 2025, the number of transactions declined. The “Mallorca Magazin” reports nine percent fewer sales in the first half of the year and states: “The real estate market in the Balearic Islands is losing momentum.”
Domestic buyers in particular are struggling with high prices and rising living costs. According to the magazine, very few apartments in the mid-price segment relevant to them are available at affordable prices.
Restrictive lending practices exacerbate the problem. According to Schütze, Spanish banks often only finance up to 80 percent of the loan-to-value ratio. Fewer and fewer households can raise the 20 percent down payment plus closing costs required.
Luxury buyers pay in cash
In the high-end segment, loans play virtually no role. “Around 80 percent of all residential property purchases exceeding one million euros registered in 2025 will be made without a registered mortgage,” analyze the Dahler experts. The majority of luxury buyers pay in cash.
Risks associated with buying remain high.
Even substantial capital doesn’t protect against mistakes. Schütze warns: “The biggest risk when buying property in Spain or Mallorca remains a lack of thorough research.” Discrepancies regarding land area, extensions, or permits can appear in the property listing or even the purchase agreement. A careful technical and legal review is highly recommended, as incorrect information about property sizes and extensions could cause problems years later.
Stricter rules for foreign buyers, such as a quota for foreigners like in Switzerland, remain unlikely. Such restrictions are discussed repeatedly, according to Schütze, but nothing has been implemented so far.