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Buying a second home in Mallorca could be one of the smartest decisions you'll ever make. In this article we explain how you can live the Mediterranean dream in Mallorca by purchasing a second home.
By Mallorca Select
11 June 2025
Reading Time: 17 minutes
Mallorca Select is a boutique Luxury Real Estate Agency in Mallorca.
Buying a second home in Mallorca is no longer just a lifestyle choice — for many international buyers, it has become both a secure investment and a gateway to an extraordinary Mediterranean way of life.
The island offers a unique combination that few destinations can match:
Year-round sunshine
World-class marinas and golf courses
Cosmopolitan dining
Strong sense of safety and stability.
It is precisely this blend that has made Mallorca one of Europe’s most desirable second-home markets, attracting families from Germany, Switzerland, Scandinavia, the UK, and increasingly the US.
Unlike many regions of Europe where real estate values have softened in recent years, Mallorca has shown remarkable resilience.
If we let the numbers speak, we can see that in July 2025, the average home prices in the Balearic Islands surpassed €5,000 per square meter, an extraordinary 84% increase from the 2007 pre-crash peak of €2,762/m².
Palma itself follows suit, with current rates nearly €4,900/m². Despite broader market slowdowns across Europe, Mallorca continues to thrive, especially in high-demand areas like Palma Old Town, Port d’Andratx, Sóller, Deià, and Pollença, where growth of 5–8% year-on-year is really common.
What’s driving this momentum? You may ask.
Well, a potent mix of sun-soaked climate, unmatched natural beauty, global connectivity, and unparalleled privacy are some of the main reason but it’s not all.
Remote-work flexibility and robust international demand, especially from North America, Northern Europe, and the UK, are keeping the luxury sector active and coveted.
For over 15 years, Mallorca Select has helped international clients transform their aspirations into definitive ownership, whether by guiding them to rare off-market retreats in Son Vida or establishing seamless management for their long-term investment. Your second home in Mallorca is waiting for you and we will more than happy to follow you along this amazing journey to secure the best deal for your next home.
Mallorca’s real estate market continues to defy broader European trends—delivering robust growth and enduring appeal to international buyers. For anyone considering a second home, understanding current dynamics is essential.
In July 2025, average property prices in the Balearic Islands surpassed €5,000 per square meter, shattering the previous peak from 2007 by 84%—from €2,762/m² then to €5,069/m² now.
In the capital, property values remain exceptionally high. In March 2025, prices in Palma exceeded €4,900/m², and by July averaged €4,892/m². Other sources report even stronger growth: between May 2024 and April 2025, prices rose from €4,860 to €5,429/m², an 11.7% year-on-year increase.
The southwest of Mallorca continues to dominate the island’s luxury property market in 2025, with average prices approaching €9,000 per square meter. This region consistently outpaces other parts of the island, not just in pricing but also in the depth of international demand.
By comparison, central areas average around €4,550/m², highlighting the significant premium buyers are willing to pay for prime southwest addresses.
What drives this dominance? It is a combination of unrivalled lifestyle amenities, international accessibility, and limited supply.
Prime Locations: Areas such as Port d’Andratx, Bendinat, Santa Ponsa, and Puerto Portals are considered the “golden corridor” of Mallorcan real estate. Each combines breathtaking sea views with proximity to marinas, golf courses, and fine dining, offering a lifestyle tailored to people who don’t want to compromise on absolutely anything.
Yachting and Marinas: The southwest is home to the island’s most prestigious marinas like Port Adriano, Puerto Portals, and Port d’Andratx. For buyers arriving by yacht or seeking a waterfront lifestyle, this region provides unparalleled facilities.
International Community: The area attracts a cosmopolitan mix of residents — from German entrepreneurs and British financiers to Scandinavian families — creating an international environment where services, schools, and businesses cater seamlessly to foreign buyers.
Investment Resilience: With limited plots for new development due to coastal restrictions and protected landscapes, the southwest’s property supply remains capped. This scarcity ensures that villas here not only hold value but often outperform the island’s already strong appreciation rates. For example, Port d’Andratx has seen consistent double-digit growth in resale values over the past five years.
Accessibility: The southwest is less than a 30-minute drive from Palma and the international airport, making it ideal for second-home owners who want easy access for weekend getaways or frequent international travel.
In short, the southwest is where lifestyle aspirations and investment security converge. It is no coincidence that many of Mallorca’s most iconic luxury villas — including those owned by international celebrities and business leaders — are found along this stretch of coastline. For discerning buyers in 2025, the southwest remains the clear benchmark for prestige, exclusivity, and enduring value.
Mallorca’s coastline has always commanded a premium, and in 2025 the gap between coastal and inland properties remains striking. According to recent studies, inland properties average around €3,233 per square meter, while coastal areas average €4,559/m² — a difference of roughly 41%. Even when removing inland-adjacent zones, strictly coastal areas still achieve prices 37% higher than their inland counterparts.
For second-home buyers, waking up to the sea is often the ultimate aspiration, which translates directly into willingness to pay.
Zoning regulations and strict building restrictions along the coast keep supply of new developments very limited. Unlike inland areas, where land is more plentiful, prime coastal plots are scarce — and scarcity drives value.
Coastal areas are consistently the first choice for international buyers, who often arrive with higher budgets than local residents. Regions like Port d’Andratx, Cala Vinyes, and Costa den Blanes attract a global clientele, reinforcing their price stability even in uncertain economic climates.
That said, inland areas are far from being a weak investment. In fact, for buyers seeking larger estates, privacy, and a more authentic Mallorcan lifestyle, inland properties present exceptional value, often at half the cost per square meter compared to the southwest coast. Towns such as Alaró, Santa Maria, and Sineu are increasingly popular among buyers looking for space, vineyards, or equestrian estates, all while still being within 30–40 minutes of Palma.
If you are looking to buying a second-home in 2025, your decision will be influenced by a lifestyle choice versus investment strategy. Coastal homes maximize prestige, liquidity, and rental potential, while inland estates offer space, tranquility, and relative affordability. ù
Our catalog of luxury real estate is a starting point for your search. We keep our listing “secret” because we don’t like to burn properties and we like to show to only people who are really interested in buying a second home in Mallorca in the next future. We commit 110% to
At Mallorca Select, our curated catalog of selected luxury properties is the starting point for your journey. Unlike many agencies, we do not publish every property openly, instead, we maintain a discreet portfolio of more than €1.5 billion in listings, including off-market opportunities, which we present only to genuinely interested buyers. This approach protects the privacy of homeowners and ensures that our clients gain access to properties not available to the general market.
For many international buyers, the question isn’t “Why Mallorca?” — it’s “Why anywhere else?” The island has become one of Europe’s most desirable destinations for second homes, blending Mediterranean beauty with modern convenience in a way few places can rival.
With over 300 days of sunshine a year, Mallorca makes outdoor living part of everyday life.
But that’s just the start. Palma gives you the buzz of a capital city, with boutique shopping, Michelin-starred restaurants, rooftop bars — all wrapped in historic streets and Gothic architecture. Drive 20 minutes and you’re in Sóller or Deià, where artists and writers have found inspiration for decades. Or head inland and discover vineyard estates producing some of Spain’s most exciting wines.
The beauty of Mallorca is the balance. You can have a cosmopolitan dinner in Palma on Friday, hike the Tramuntana mountains on Saturday, and relax at a beach club in Portals Nous on Sunday. Few places in Europe offer that kind of variety in such a compact, easy-to-reach island.
And the best part? This isn’t just a holiday lifestyle. Many international families live here year-round because the island blends leisure with practicality — excellent schools, top healthcare, fast internet, and quick flights to every major European city. It’s a lifestyle that works as much as it inspires.
One of the biggest reasons people choose Mallorca is peace of mind. The market here doesn’t swing up and down like other Mediterranean spots.
Why? Because supply is limited by design.
The Balearic government has put strict zoning laws in place. You can’t just build anywhere you like, especially along the coast. Large parts of the island are protected forever, which means sea-view plots are rare and getting rarer. When supply is capped like this, values hold strong — and in prime areas, they keep climbing.
That’s also why Mallorca hasn’t suffered the same overbuilding you see in parts of the Costa del Sol or even in some French Riviera towns. The island kept its natural beauty intact. Buy a villa here and you don’t need to worry about a concrete apartment block popping up in front of your view.
On top of that, demand is global. Germans, Brits, Swiss, Scandinavians — even more Americans are buying now. This international mix makes the market more liquid and resilient, no matter what’s happening in the wider economy.
And the track record speaks for itself: Mallorca bounced back faster than most after the 2008 crisis and the pandemic. By 2025, prices are at record highs, well above pre-2007 levels. For a second home, that means you’re not just buying a lifestyle, you’re protecting your money in one of Europe’s most stable luxury markets.
Feeling secure wherever you live and grow your memories is priceless, and Mallorca delivers 100% that peace of mind.
The island consistently ranks among the safest places in the Mediterranean, with low crime rates and a strong sense of community. By leaving your villa closed for part of the year, you can avoid having to worry about safety.
Healthcare is another big plus. Mallorca has top-tier hospitals and private clinics, many with English-speaking staff and international standards of care. The island also offers excellent international schools, which is one of the reasons why so many expats don’t just buy property here; they actually settle here full-time.
Then there’s the convenience factor. Palma de Mallorca Airport is one of Europe’s busiest hubs, with direct connections to over 150 destinations. Most European capitals are just a two- to three-hour flight away, and new long-haul connections make it easier than ever for buyers from the US or Middle East. Combine that with Mallorca’s compact size — no property is more than an hour’s drive from the airport — and accessibility couldn’t be easier.
Mallorca is a place where families and professionals can truly feel at home, and this is down to the mix of safety, world-class services and seamless travel that the island offers; it's not just a place to buy a second home.
Nothing against Ibiza — we actually love that island. As you may know, it’s famous for its nightlife and bohemian chic, and it attracts a younger, seasonal crowd who come for the summer scene. If you’re looking for parties, DJs, and that free-spirited vibe, Ibiza is unmatched.
But if you’re seeking stability, year-round life, and discretion, Mallorca offers far more. The island has an established international community, top-tier healthcare, excellent schools, and infrastructure that supports families and professionals who want to use their second home throughout the year — not just in the summer.
Then there’s the property market itself. While Ibiza’s luxury offering is relatively limited, Mallorca’s is far broader and more diverse. Here, you can find everything from modern fincas nestled in the Southwest to ultra-modern sea-view estates worth €10M+ in Port d’Andratx or Bendinat. The range of styles, sizes, and locations simply gives buyers more choice — and more opportunities to find something that truly matches their lifestyle.
At the same time, Mallorca tends to offer greater value for money compared to Ibiza, especially in the high-end bracket. This is part of why so many HNWIs have shifted their focus from Ibiza to Mallorca over the last decade.
That said, we don’t see the two islands as competitors. Each has its own magic, and in fact, many of our clients spend time in both. Thanks to our strong network of partners and property owners, if you are also interested in buying a home in Ibiza, we can assist you there too — helping you find the perfect property that fits your vision of island living.
The French Riviera has long been a symbol of glamour. St. Tropez, Cannes, Nice — the names alone conjure images of red carpets, luxury yachts, and jet-setters sipping champagne on the beach.
And yes, the Côte d’Azur has undeniable prestige.
But here’s the thing: prestige often comes with a price tag that doesn’t always make sense. Property prices in the Riviera can be even higher than Mallorca, yet the taxation system in France is significantly less favorable for international buyers and second-home owners.
Add to that the heavy bureaucracy and higher wealth tax exposure, and suddenly Mallorca begins to shine much brighter.
Then there’s the lifestyle balance. The Côte d’Azur is stunning, but it can feel crowded and highly seasonal, with much of its activity concentrated in the summer. Mallorca, on the other hand, offers a year-round lifestyle. From Palma’s thriving cultural scene in winter to the endless beaches and hiking trails, the island is alive in every season.
And speaking of beaches — this is where Mallorca quietly outshines the Riviera. While the French Riviera is known for its glitz, many of its beaches are pebbled, narrow, and crowded. In Mallorca, you’ll find over 200 sandy beaches, ranging from lively stretches with beach clubs to hidden turquoise coves accessible only by boat or trail. It’s one of the few Mediterranean destinations where luxury living and unspoiled nature coexist so seamlessly.
Finally, accessibility. Mallorca is two to three hours from most European capitals with dozens of direct year-round flights. While the Riviera is well connected too, travel there often means dealing with more traffic, congestion, and limited space. Mallorca’s compact size means that even in peak season, you can reach your villa, the marina, or the golf course in under 30 minutes.
So yes, the Côte d’Azur is glamorous, but Mallorca combines glamour with ease, discretion, and long-term value. It’s not just a place to be seen — it’s a place to live, to enjoy, and to invest with confidence.
Buying a second home in Mallorca it’s also about making a smart financial move. This is where the island stands out compared to many other Mediterranean destinations, as we also have anticipated in previous sections.
Spain has a clear and structured tax system for property owners, and the Balearic Islands benefit from lower wealth tax thresholds and well-established processes for non-residents. For high-net-worth individuals, this often makes Mallorca a safer and more predictable option than France or Italy, where property-related taxes and inheritance rules can be far more punitive.
When you buy in Mallorca, the main taxes to be aware of are:
Property Transfer Tax (ITP): between 8–11.5% depending on the purchase price.
Annual Property Tax (IBI): generally modest compared to other luxury markets.
Wealth Tax: applies only above certain thresholds, and can often be optimised with the right ownership structure.
If you plan to rent your villa out when you’re not on the island, Mallorca’s tourism demand works in your favour. Luxury villas in prime areas like Port d’Andratx, Pollensa, or Son Vida can generate strong yields, especially during peak summer months. With tourist rental licences tightly regulated, supply is limited — meaning well-licensed properties command a premium.
Beyond purchase taxes, everyday ownership is surprisingly manageable. Utility bills, maintenance costs, and even staffing (gardeners, housekeepers) are generally lower here than in France or Italy. Add to this Mallorca’s sunny climate — less need for heating in winter — and running costs are significantly lighter than in northern or central Europe.
Buying a second home in Mallorca isn’t just a financial investment — it’s a lifestyle decision that pays you back in memories, experiences, and long-term value.
Few places in the Mediterranean can offer the same mix of sunshine, safety, international connectivity, and market stability. That’s why year after year, high-net-worth buyers choose Mallorca as their second home destination over Ibiza, the Côte d’Azur, or Tuscany.
At Mallorca Select, we’ve helped families, entrepreneurs, and investors turn their vision of a second home into reality. With over 15 years of experience, deep local knowledge, and a carefully curated portfolio of luxury properties, we make sure you not only find the right house, but also the right fit for your lifestyle.
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