Mark Stücklin
New housing permits on Mallorca rose slightly in the first half of 2025, but the island is still struggling with an acute housing shortage — and the type of homes being built may not be what’s needed most.
According to data from Mallorca’s association of technical architects (Colegio de Aparejadores y Arquitectos Técnicos de Mallorca), 1,007 new homes were approved between January and June this year, up just 2.1% from the same period in 2024. That’s only 21 more homes than last year and still below the volumes seen before the pandemic.
Of these, 482 were flats in multi-family buildings, while 525 were villas or townhouses. That means detached and semi-detached homes once again outnumbered apartments, even though villa permits fell by nearly 5%. Meanwhile, flats grew by 11% compared to last year, suggesting a slow but welcome shift towards more urban housing.
“The 11% increase in permits for multi-family housing is a positive sign that points to the direction Mallorca needs to take in the coming years,” says Hans Lenz, Managing Director of Engel & Völkers in the Southwest of Mallorca, and a board member of the ABINI real estate association. “Combined with affordable housing initiatives and measures to release more land for development, this trend should gradually shift the balance towards apartments — exactly what the island requires. It’s good news.”
Palma leads the way
Palma dominated new development activity, with 266 new flats and 52 villas permitted. Marratxí followed with 93 flats and 49 villas, while Calvià saw 47 villa permits.
Renovation boom
Alongside new builds, Mallorca also recorded 1,513 renovation permits in the first half of 2025 — a jump of 13% year-on-year and the highest figure in recent years. The surge was driven in part by the final rush to take advantage of EU-backed Next Generation subsidies for energy efficiency, which expired at the end of June.
Bottom line
Mallorca is still building too few homes overall, and too many of the wrong type. Until the balance tips more decisively towards apartments, the island’s housing shortage is unlikely to ease.
