FAQ - MALLORCA REAL ESTATE MARKET

Mallorca offers a diverse property market with options ranging from luxury coastal villas to historic townhouses and peaceful countryside fincas. Below are some of the most desirable areas, grouped by region:
Southwest Mallorca (Luxury Hotspot)
  • Port Andratx – Frontline villas, designer homes, and marina lifestyle.
  • Santa Ponsa / Nova Santa Ponsa – Golf courses, sea-view villas, and family living.
  • Puerto Portals & Bendinat – Marina glamour, upscale dining, luxury apartments, and villas.
  • Son Vida – Prestigious hillside community overlooking Palma, Mallorca’s “Beverly Hills.”
  • Cas Català & Sant Agustí – Exclusive residential areas just outside Palma, combining sea views, proximity to beaches, and quick access to international schools.
Palma City
  • Palma Old Town (Casco Antiguo) – Historic palaces and modernised apartments in cobbled streets.
  • Santa Catalina – Trendy district with restaurants, bars, and stylish apartments.
  • El Terreno – Revitalised area near Bellver Castle with contemporary developments.
  • Portixol & Molinar – Seafront living with boutique apartments and beachfront restaurants.
  • Son Armadams – Green, residential, and increasingly popular for modern renovations.

Central Mallorca

  • Santa Maria del Camí – Traditional village with vineyards, popular with international buyers.
  • Alaró – Known for its historic charm, hiking, and country fincas with mountain views.
  • Binissalem – Wine region with rustic estates and strong cultural heritage.
West Mallorca
  • Deià – Famous artists’ village with stone houses and stunning sea views.
  • Valldemossa – Historic town surrounded by mountains, ideal for heritage homes.
  • Sóller & Port de Sóller – Valley setting with orange groves, tram, and charming port.
  • Banyalbufar – Traditional cliffside village with terraced landscapes.

These areas consistently attract international buyers and are regarded as safe long-term investments in Mallorca real estate.

As of 2024–2025, property prices in Mallorca continue to rise due to high demand and limited supply:
  • Overall Mallorca average: ~€4,500 per m² (varies widely by location).
  • Southwest Mallorca (premium areas): €6,000–€10,000 per m², depending on proximity to the sea, views, and exclusivity.
  • Son Vida luxury villas: Often exceed €10,000 per m² for prime properties.
  • Palma Old Town apartments: €5,000–€7,000 per m², with demand for modernised historic homes.
The market shows consistent growth, with strong interest from German, Swiss, British, and Scandinavian buyers.
Mallorca’s property market remains strong, driven by:
  • Limited land availability — strict building regulations preserve the island’s character.
  • International demand — particularly from Northern Europe.
  • Luxury focus — southwest Mallorca, Palma, and northeast coastal areas dominate high-end transactions.
  • Rising construction costs — contributing to increasing property values.
The trend points toward long-term price stability and strong investment potential.
Yes — several high-end new-build projects are underway, especially in the southwest:
  • Modern sea-view villas in Port Andratx and Cala Llamp.
  • Luxury apartments near Puerto Portals and Bendinat.
  • Eco-friendly fincas and sustainable villas inland and in Santa Maria/Alaró.
  • Exclusive projects in Son Vida and Palma’s Paseo Marítimo.
These developments combine cutting-edge design with Mallorca’s Mediterranean lifestyle, making them attractive for international buyers.
Absolutely. Mallorca remains one of Europe’s most stable and desirable real estate markets due to:
  • Strong international buyer demand.
  • Scarcity of prime land and properties.
  • Excellent rental yields in holiday hotspots.
  • Year-round lifestyle appeal (international schools, healthcare, infrastructure).
  • Mallorca’s global reputation as a luxury second-home destination.
When purchasing property in Mallorca, buyers and sellers should consider:
  • Transfer Tax (ITP) – 8–13% for resale properties, depending on purchase price.
  • VAT (IVA) + Stamp Duty – 10% VAT + 1.5% stamp duty on new builds.
  • Annual Property Tax (IBI) – Based on cadastral value.
  • Plusvalía Municipal – Paid by the seller, based on increase in land value.
  • Wealth Tax – Applies to properties above certain thresholds (€700,000 for residents, €3 million for non-residents).
  • Non-Resident Tax on Rental Income – 19% for EU residents, 24% for non-EU.
A trustworthy Mallorca real estate agent should provide:
  • Local expertise in key areas like Port Andratx, Santa Ponsa, and Palma.
  • Strong negotiation skills to secure the best deal.
  • Comprehensive guidance — from viewings to legal advice coordination.
  • International experience — supporting buyers and sellers from different countries.
At Prince Estates, we specialise in helping clients secure properties in southwest Mallorca and beyond.
The buying process in Mallorca includes:
  • Obtaining an NIE (Foreigner Identification Number).
  • Opening a Spanish bank account.
  • Hiring a local lawyer for due diligence.
  • Signing an option contract (Contrato de Arras) – Buyer and seller agree on the terms of the sale. Buyer pays a deposit (normally 10%). If the buyer withdraws, they lose the deposit. If the seller withdraws, they return double the deposit.
  • Completing at the notary with final deed signing (Escritura publica de Compraventa) – Buyer pays the balance of the purchase price. The notary certifies the transaction, ensuring all legal requirements are met.
  • Registering the property in the Land Registry (Registro de la Propiedad) – The property is officially transferred into the buyer’s name. Registration protects the buyer’s legal ownership.
Mortgages are available for both residents and non-residents:
  • Residents: Up to 80% LTV (Loan-to-Value).
  • Non-residents: Typically 60–70% LTV.
  • Interest rates: Fixed and variable (currently 2.5–3.5% range).
  • Required documents: Proof of income, tax returns, credit history, NIE, bank account.

No — in Mallorca, the seller pays the agency commission. Buyers do not pay additional fees for agency services.