In 2025, the real estate market in Mallorca continues to move at two speeds: while the premium segment remains strong, the general market faces significant challenges.
Transaction volumes have slightly declined compared to the second half of 2024, influenced by global political uncertainty (especially, the uncertainty generated from the proposed tariffs by the U.S.). However, international demand remains solid, especially in prime areas.
Domestic demand has also rebounded, particularly following recent interest rate cuts. That said, the lack of affordable housing — both for sale and rent — is holding back many transactions.
In the premium segment (Andratx, Son Vida, Bendinat, Santa Ponsa, Palma’s Old Town…), prices remain high due to structural factors: land scarcity, high construction costs, limited supply, and robust demand from buyers who are less price-or financing-sensitive.
As for primary residences, pressure is evident: young people and local families face significant challenges accessing housing. We’ve also observed a clear shift in the second-home segment, as many properties previously used for holidays are now being converted into primary residences — a trend accelerated by the pandemic. Buyer profiles are evolving, with a greater focus on homes suited for stable, long-term living on the island.
