Palma ranks among the 20 Spanish cities with the highest interest in buying and selling homes, according to the relative demand ranking published by Idealista for the second quarter of 2025.
Palma ranks 17th on the national list, making it one of the most attractive provincial capitals for home buyers. According to the real estate portal, a total of 18 provincial capitals are among the top 30.
But, if there’s one clear trend in Spain’s housing market, it’s rising prices, both for buying and renting. While the rankings of the most expensive cities remain relatively stable, the cost of living in them is becoming increasingly out of reach. And according to Idealista, Palma is the fourth most expensive city in which to live in Spain.
Housing prices in Palma are well above the national average and have soared in recent months. Over the past year, the price per square metre for home sales has jumped by an impressive 18.4%. Rental prices have also surged, rising by nearly 10% in the same period. As of June 2025, the average sale price in Palma is €4,907/m², while the average rent stands at €18.3/m².
Santa Eulària des Riu (Ibiza) and Calvia are positioned as two of the Balearic municipalities with the highest average prices among the most sought-after areas. In fact, the Ibizan town ranks second among the most expensive housing prices, at almost 2.2 million euros. Calvia, in third place, exceeds 1.81 million euros, closing the podium of the most expensive areas among the most sought-after in Spain.
Other Balearic municipalities also stand out for their high average sale price. These include Ibiza (€914,550), Llucmajor (€841,989) and Ciutadella de Menorca (€593,178). In addition, Palma ranks among the most expensive capitals in the country, with an average total price of €797,000, only behind San Sebastián and Madrid.