Mallorca Becoming World Leading Market For Luxury Property

Mallorca is solidifying its position as one of the world's leading markets for luxury housing.

According to a study by the high-end real estate firm Berkshire Hathaway HomeServices, the island remains one of the most sought-after luxury destinations, recording steady growth despite global economic challenges.

Specifically, Mallorca is one of the seven locations analysed in the 2024 Global Luxury Landscape Report and the only one outside of North America. The current reference markets for the real estate company include Santa Barbara (California), Nantucket (Massachusetts), St. Louis (Missouri) and Brentwood (Tennessee) in the United States, as well as San Miguel de Allende and Santa Fe in Mexico.

Jorge Forteza, CEO of Berkshire Hathaway HomeServices Nova Mallorca, explains that "it is a market that has grown steadily over the last five years. It experienced spectacular growth in the year following the pandemic and has continued to grow, albeit at a slower pace, particularly because Mallorca is a privileged and highly sought-after location."

Above all, it is an incredibly attractive destination for international buyers, especially from Germany, the United Kingdom, Scandinavia and the United States, who are keen on second homes such as villas, flats with sea views and country estates.

According to Forteza, this demand, combined with a limited supply of properties, is driving up prices in Mallorca, making it not only an exclusive destination but also a secure investment. Among the island's most sought-after areas is Son Vida, Mallorca's most famous and luxurious neighbourhood, often referred to as the "Beverly Hills of Mallorca," where the average price is around €5 million. It is located near Palma, the capital, and several golf courses.

For those seeking more affordable options, Pollensa stands out. This town, located in the north of the island with its narrow streets and 17th- and 18th-century houses, has an average price of around €1.5 million. For those who prefer to be close to the beaches, other notable areas include Bendinat and Portals Nous.

Forteza anticipates "a relatively good year for the luxury property market in Mallorca." Although the year began with moderate activity, property enquiries have recently surged, leading to a rise in transactions. The estate agency currently has more than 1,000 properties in its portfolio, with over 200 properties on portal Idealista alone.