The Engel & Völkers Market Report Mallorca 2022/2023 - now available!

Over the past two decades, the Balearic Islands' real estate market has experienced substantial growth. High levels of interest from international clients and the limited supply of properties have resulted in special market conditions, particularly in the premium segment.

Property prices rose by 12.3% last year, and real estate has continuously proven to be a crisis-proof and stable long-term investment. With a transaction volume of around a billion euros in 2022, Engel & Völkers Balearics achieved another new record. Compared to 2019, the year prior to Corona, the transaction volume has more than doubled.

Everything that you, dear Mallorca enthusiast, need to know in connection with buying and selling properties can be found in our Engel & Völkers Market Report Mallorca 2022/23.

Market Overview in the Balearic Islands

The Balearic Islands are some of the most popular travel destinations in the Mediterranean and are regarded as some of the most attractive real estate locations in Europe. According to the Spanish Ministry of Transport, Mobility and Urban Agenda (MITMA), the volume of transactions across the Balearics totalled approximately 7.5 billion euros in 2022. Compared to the previous year, this represents an increase of around 14% (2021: 6.6 billion euros). 

Over the past 17 years, the real estate market has experienced strong growth in the Balearics and the transaction volume reached a new all-time high in 2022. Property transactions have increased by around 60% across the entire market over the past two years. Both the number of transactions stemming from international buyers as well as the overall number of transactions in the Balearics demonstrate similar trends to the previous years. The property market in the Balearics does not seem to be as affected by the current interest rate trends as the German property market. Even with higher interest rates, demand remained high in the Balearic Islands’ property market. This is somewhat due to the high proportion of buyers who do not need financing. Real estate therefore continues to be a lucrative and crisis-proof investment in the Balearic Islands, despite the current macroeconomic challenges in Europe.

Market Overview Mallorca

Mallorca is increasingly becoming the No. 1 destination for holiday homes in Europe and demand for real estate remains consistently high. Engel & Völkers’ 2022/23 Market Report provides a detailed overview of property market developments and reveals some of the current market trends. 

To identify the real estate supply in the various areas of Mallorca as well as the dynamics of the real estate market, the independent market research company Casafari LLC analysed data from 591 real estate agencies in Mallorca from the period between 1 January 2022 and 31 December 2022. Engel & Völkers analysed the distribution of properties across the market in the premium segment based on 34.120 properties (for asking prices starting at 300,000 euros for apartments and 700,000 euros for houses). The majority of these properties are located in the regions of Palma (28%), the southwest (19%), and the centre of Mallorca (15%). 

In 2022, the trend towards a greater demand for properties and a simultaneous decline in the supply of properties continued in most of the island‘s regions. At Engel & Völkers Mallorca, more properties were sold or taken off the market (56%) than were newly placed on the market (44%).

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Engel & Völkers Mallorca: Your real estate agent of choice!​

Over the past 30 years, Engel & Völkers has managed to establish itself with a total of 19 property shops in Mallorca, in which over 170 professional, multi-lingual real estate agents are available to help you. In 1990 our first real estate shop outside of Germany opened on Mallorca. 

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

The experts at Engel & Völkers on Mallorca are forecasting a stable market development on the island for the rest of the year. However, it is to be expected that the transaction figures will decline slightly with constantly high prices. Property buyers are turning their attention to more and more locations around the island that were previously not of such interest and in many cases, they are also spending much longer periods living in their holiday residence, enabling them to enjoy the benefits of the island throughout the year. "The consistent international demand for high-end properties on Mallorca and the resulting price stability reflect the strong resilience of the market in times of global challenges, more difficult financing conditions as well as volatile developments on the financial markets. Due to the high quality of life, excellent accessibility as well as long-term value stability, the island will continue to be one of the most sought-after holiday property markets in the world," Florian Hofer sums up.

Further information about the residential property market on Mallorca can be found in the  Engel & Völkers Market Report Mallorca 2022/23, published by Engel & Völkers.

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