Foreigners are continuing to invest in Balearic property, especially Mallorca despite the price of second-hand housing in the Balearics reaching 5,069 euros per square metre in July, ‘the highest increase in Spain’, a figure that represents an 18.6 per cent rise compared to the same month last year, according to the latest data from the Fotocasa Real Estate Index.
This translates into an average increase of 57,678 euros per standard 80-square-metre home, so the average price of a home has risen from 341,874 euros in July 2024 to 405,551 euros in July this year.
‘This is a very significant figure that highlights the strong pressure on prices across the country,’ said María Matos, director of research at Fotocasa. ‘Second-hand homes are increasing in value at a rate we haven’t seen in years,’ she added.
Among the causes of the increase, Matos highlighted “the structural imbalance between supply and demand, exacerbated by the lack of available stock and the attractiveness of housing as a safe haven in a context of inflation and rental yields. At the municipal level, the highest year-on-year increases were in Campos (48.2%), Santa Eulària des Riu (45.7%), Sant Antoni de Portmany (39%) and Son Servera (30%).
In terms of absolute prices, Santa Eulària des Riu leads the way with 8,521 euros per square metre, followed by Andratx (7,534), Ibiza (7,282) and Sant Josep de sa Talaia (7,102). In contrast, the most affordable municipalities continue to be Inca (€2,426) and Manacor (€2,730).
And, foreigners now account for 30% of all home purchases in the Balearics. According to the latest data from the Association of Registrars and the real estate portal pisos.com, 30.03% of sales registered in the Balearics during 2025 were made by foreigners, making the Balearics the province with the third highest presence of foreign capital, behind only Alicante (43.67%) and Malaga (34.75%).