The Engel & Völkers Market Report Mallorca 2023/2024 - available as of now!

Engel & Völkers has been publishing an annual report since arriving in Mallorca more than 30 years ago to help increase transparency for the benefit of everyone with an interest in the housing market. As the leaders in upmarket real estate services on the island we believe we have a privileged view of the business, and wish to make our expertise available to all stakeholders and Mallorca enthusiasts looking forward to understand and deep dive into the properties market by publishing our Engel & Völkers Market Report Mallorca 2023/24.

The figures of the study show that the market experienced a soft-landing in 2023, after an extraordinary boom that followed in the wake of the pandemic, when sales were boosted by pent up demand from the lockdown period, plus surging international interest in the healthy lifestyle that Mallorca has to offer. Total Mallorca sales in 2022 were the highest for 17 years, and though based on fundamental demand for Mallorca’s attractive property and lifestyle, it put the market under strain. The steady normalisation process of 2023 has returned the market to a more sustainable level of sales whilst prices have remained stable, and also demonstrates the market’s strong bedrock of both local and international demand.

Market Overview in the Balearic Islands

Property sales figures show that 2023 was a positive year for the Balearic housing market, which performed an exemplary soft landing after an extraordinary boom that followed in the wake of the pandemic. According to figures from the General Council of Notaries there were 15,302 homes sold in the region last year, in line with the ten year average and just 4% less than 2019, but 24% down compared to the same period in 2022, when sales were booming after the pandemic.

Mallorca represents 78% of the Balearic housing market by volume. In terms of ‘sales transaction volume’, for which the data published by the Spanish Housing Ministry only covers the first nine months, the Balearic property market had a total value of €4.2b leaving it on course to be the third-best year for the market in the last decade.

Market Overview Mallorca

Mallorca is establishing itself as the No. 1 destination for holiday homes in Europe and demand for real estate remains consistently high. Engel & Völkers’ 2023/24 Market Report provides a detailed overview of property market developments and reveals some of the current market trends.

Property sales representing almost 80% of the Balearic market, homes sales in Mallorca enjoyed the same soft landing after the boom of 2022 as the rest of the region. There were 8,636 property sales on the island in the first nine months (Housing Ministry figures), down 24% on the previous year, but in line with the ten year average, despite the higher interest-rate environment.

The ‘sales transaction volume’ of the market was €3.3b in the first nine months (Housing Ministry figures) - the third highest level on record. This assumes that the average sale price in Mallorca matches the Balearics as a whole, which is a reasonable assumption given Mallorca’s dominance of the Balearic housing market. Engel & Völkers sales figures for the full year 2023 showed transaction volume down 23% compared to the previous year’s boom, but 38% above the 10-year average, and outperforming the overall market decline in the first nine months of 27% thanks to our strong international brand and leadership of the upmarket segment. Since 2013 Engel & Völkers' transaction volume has increased by 227% and sales by 88%, whilst the average price of property sold by Engel & Völkers increased by 74%.​​

Mallorca property prices

Outlook: Mallorca remains highly in-demand market for second homes 

The steady normalisation process of 2023 has returned the market to a more sustainable level of sales whilst prices have remained stable, and also demonstrates the market’s strong bedrock of both local and international demand. So the soft-landing in 2023 after the post-pandemic boom is to be welcomed, and all the signs so far this year suggest a continuation of this trend towards a more sustainable equilibrium between supply and demand. 

Recent changes introduced by the regional government that make the Balearics more competitive with other regions from a fiscal point of view will also make property in Mallorca a more attractive investment in 2024, and is expected to support the market on the demand side going forward.

Further information about the residential property market in Mallorca can be found in the Engel & Völkers Market Report Mallorca 2023/24.

Methodology and Sources

This report combines data from diverse internal and external sources to offer an overview of the real estate market in the Balearic region, with a specific emphasis on the premium segment and the primary island of Mallorca. 

Internally, it draws upon Engel & Völkers' corporate data. Externally, it includes statistics from reputable entities such as the Spanish Housing Ministry (MITMA), Casafari LLC (an independent real estate market research company), the Balearic Association of National and International Real Estate Companies (ABINI), the Agency for Tourism Strategy in the Balearic Islands (AETIB), the Spanish National Statistical Institute (INE), the Statistical Institute in the Balearic Islands (IBESTAT), the Balearic Chamber of Architects (COAIB), Sociedad de Tasación (an independent expert company for property valuation and market analysis), as well as data from AENA S.A. (the world’s largest airport manager) and Registrars.