Balearics housing market – Q1 2025
An analysis of the latest data available from the Balearic housing market, home to Mallorca (Majorc), Menorca (Minorca), Ibiza and Formentera.
This report is for subscribers only. To read this valuable report subscribe here, then login and navigate back to this page.Past reports free to all readers.
Q4 2024
The housing market in the Balearics ended Q4 2024 with modest growth in overall sales volumes and rising prices across both resale and new-build segments. Foreign demand remained high but declined slightly as a share of total transactions. Mortgage lending increased moderately, and residential construction activity advanced well above long-term averages.
Sales volumes stable overall
There were 4,269 home sales recorded during the quarter, up 9% compared to Q4 2023 (Fig. 1-1). This was in line with the ten-year average and reflected a 24% increase relative to the same period a decade ago, suggesting long-term stability in transaction volumes.
Foreign demand remains high but stable
There were 1,569 home sales involving foreign buyers in Q4, representing a 7% rise year-on-year (Fig. 1-2). These included 496 property purchases by foreign residents (expats), down 2%, and 1,073 by non-resident foreign buyers (FNRs), up 12%. Over the past ten years, expat transactions in this period fell by 12%, while FNR purchases increased by 14%.
Foreign buyers accounted for 37% of the overall market, slightly below the 37% registered a year earlier and below the ten-year high of 44% (Fig. 1-3).
New build vs. resales
Resale transactions dominated the market with 3,912 units sold, a 11% increase compared to Q4 2023. New-build transactions totalled 357, showing an annual decline of 11%. Against the ten-year average, resale activity rose 1%, while new-build sales were down by 13%, highlighting subdued activity in new home transactions (Fig. 1-4).
Price growth strong across sectors
The average resale home price was €403,056, up 11% year-on-year. Over five and ten years, resale prices increased by 59% and 94% respectively. New-build homes had an average price of €599,895, rising 19% annually. Long-term growth was also strong, with a 55% increase over five years and 161% over the decade (Fig. 2-1 and Fig. 2-2).
Mortgage lending continues to grow
There were 9,787 new mortgages signed in Q4, representing a 9% increase compared to the same period in 2023 and a 5% rise over the ten-year average (Fig. 3-1). These figures suggest continued access to financing and moderate demand from local and external buyers.
Construction activity above average
Planning approvals were granted for 3,352 new homes during the quarter, representing a 20% increase from the previous year (Fig. 4-1). Compared to the ten-year average, this marked a 36% increase, indicating elevated construction levels relative to historical norms.
Outlook
The Balearics housing market held steady in Q4 2024, with consistent performance in overall sales and strong price growth. Although new-build activity and expat demand were lower than in past periods, the sector continues to show long-term strength. Resale growth, improving construction activity, and robust average home prices position the market on stable ground heading into 2025.
