Mark Stücklin
The latest SPI report shows the Balearic housing market settling into a steady rhythm in the first half of 2025, with moderate sales growth, stabilising prices, and a rebound in new-build and mortgage activity.
Sales hold up, foreign demand dips
There were 7,913 home sales in H1 2025, up 4% year-on-year and roughly in line with the ten-year average. Foreign buyers accounted for 34% of sales, down from 38% a year before as domestic demand strengthened. Non-resident second-home purchases fell 4%, while expat demand slipped 13%.
Mallorca leads, Menorca cools
Mallorca captured 77% of total sales, up 3% on the year, while Menorca fell 8% and Ibiza-Formentera rose 13%. The smaller islands remain more volatile and exposed to swings in foreign demand.
New-builds bounce back
Developers closed 745 new-home sales—up 18% year-on-year—showing confidence despite high costs and tight planning rules.
Prices stabilise
Average sale prices rose 1% to €435,000, while new-builds fell 19% from last year’s luxury-driven highs. Asking prices climbed across the board: Palma €6,600/m² (+5%), Ibiza City €6,700/m² (+3%), Mahón €3,200/m² (+13%).
Cheaper money helps
Mortgage lending rose 6% as the average Euribor rate dropped to 2.27%, fuelling a mild recovery in credit and confidence.
Bottom line
The Balearic market remains robust and internationally driven. With easing interest rates and firm demand, the islands look set for a calm and steady second half of 2025.
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