2026 market: prices at record highs, double-digit growth
In 2026, the Balearic property market is showing historically high price levels, after several years of almost uninterrupted increases.
The main factors behind this surge are:
- strong international demand, particularly from buyers in Northern Europe, Germany and the United Kingdom;
- a structurally limited supply due to the island geography and planning regulations;
- a very strong “lifestyle” positioning: climate, sea, safety, healthcare and transport infrastructure.
September 2026: €5,090/m² (+11.6% y/y), upward trend since 2025
Across the archipelago as a whole, the average price reached around €5,090/m² in September 2026, up by around 11.6% year-on-year. This double-digit growth extends an upward trend that began in 2025, after a phase of relative stabilisation.
However, there are significant disparities behind this average:
- urban and tourist areas (Palma, southwest Majorca, Ibiza Town) are well above the average;
- some inland municipalities in Majorca and Menorca remain more affordable, but are following the upward trend;
- renovated properties with outdoor space (terraces, gardens, sea views) are seeing prices rise faster than standard housing.
Property in Palma de Mallorca, for example, illustrates this gap between the regional average and the reality in the main Balearic cities. The budgets sought for family-sized apartments show that, even outside ultra-premium neighbourhoods, buyers have to accept an already very high entry ticket.
For a buyer, this means that the entry level for the market has risen sharply in just a few years, with a direct impact on:
- the acquisition budget (down payment, borrowing capacity);
- expectations in terms of rental yield;
- trade-offs between different areas of the archipelago.
Highest regional level in Spain
The Balearics now have one of the highest regional price levels in Spain, neck and neck with or ahead of traditionally expensive markets such as Madrid or the Basque Country.
Data on foreign buyer enquiries published by Green Acres confirm this move upmarket: the international clientele mainly targets large properties, often larger than 130–150 m², with median prices frequently ranging between €700,000 and €1.5 million depending on nationality and type of property sought.
In concrete terms, this translates into:
- a significant “islands” premium compared with the mainland, even for properties of equivalent standing;
- a marked gap between the incomes of local residents and market prices, fuelled by foreign buyers with high purchasing power;
- increased sensitivity to supply constraints: as soon as a segment is in high demand (sea view, new build, high-end), prices can soar quickly.
For a non-resident buyer, this situation requires careful calibration of the project:
- define a total budget including acquisition and holding costs;
- sometimes accept moving away from the most iconic spots to preserve financial balance;
- plan for long-term ownership to smooth out the investment effort.
Segments and pressures: islands with contrasting profiles
Talking about the “Balearic market” in the singular is misleading: each island has its own dynamics, level of pressure and target clientele. ⚖️
Premium coastal: southwest Majorca and Ibiza, ultra-tight
Premium coastal areas concentrate the highest pressure:
- southwest Majorca: Andratx, Portals Nous, Santa Ponsa, Bendinat, Port d’Andratx;
- Ibiza and Formentera: Ibiza Town, Santa Eulària, San José, Es Cubells, sought-after seafront areas.
In southwest Majorca, the budgets recently observed for Andratx or Portals Nous – where listings can reach several million euros for villas with sea views, as shown by the property listings in Andratx or in Portals Nous – clearly illustrate its status as an “ultra-premium” market.
Key features of these segments:
- limited supply, little available land and few new developments;
- very high budgets, with luxury villas and apartments;
- a mainly international clientele, often looking for second homes or prestige properties.
In Ibiza, property searches around Ibiza Town or Santa Eulària confirm the dominance of the high-end segment, with a focus on contemporary houses, renovated fincas and apartments with panoramic terraces, as reflected in the typical properties followed in:
For a project in these areas:
- allow for a longer search process, with active monitoring and quick reactions to quality properties;
- anticipate limited room for negotiation: the margin is often small on rare products;
- carefully assess long-term value: resale potential, lasting attractiveness of the neighbourhood, exposure to noise or seasonality.
In certain micro-areas such as Bendinat or Santa Ponsa, the price levels observed for residences with golf course, swimming pool and hotel-style services (as can be seen in the property listings in Bendinat or Santa Ponça) show that the market is approaching the standards of the French Riviera or certain key areas of the Italian Riviera.
Menorca: a more heritage-focused and relaxed market
At the opposite end of the scale from ultra-media-hyped hotspots, Menorca offers a more heritage-focused and preserved character:
- slower pace of life, more family-oriented tourism;
- controlled development, with a strong focus on protecting the landscape;
- significant seasonal flows, but less “party-focused” than some areas of Ibiza.
In property terms, this translates into:
- a less speculative market, more oriented towards the long term;
- high prices but generally below the peaks seen in Ibiza or southwest Majorca;
- strong interest in village houses, fincas and small residences near the sea.
In Maó, the main gateway to Menorca, the properties listed on second-home-oriented platforms such as Green Acres illustrate this intermediate positioning: family homes in Maó or small renovated buildings, often intended for heritage projects, with usage more residential than purely speculative.
Menorca may be a good fit if you are looking for:
- a family second home for regular use rather than a pure investment;
- a more authentic environment, less exposed to over-tourism;
- a compromise between quality of life and protection of your budget.
Who is buying? The influence of French, Swiss, British and German buyers
Beyond the simple rise in prices, the structure of foreign demand helps shape the Balearic market. Enquiry data recorded on Green Acres for the Balearic Islands show a strong presence of high purchasing-power European buyers.
The main countries represented are:
- France: around 20% of foreign enquiries, for properties often larger than 150 m², with a median price of around €740,000;
- Switzerland: 13% of enquiries, with a median price close to €755,000 and slightly smaller properties, at around 130 m²;
- United Kingdom: 11% of enquiries, for properties of around 155 m² and a median budget above €800,000;
- Germany and the Netherlands: profiles that often target large properties (frequently around 190 to more than 250 m²), with budgets regularly exceeding €1 million.
Italian and American buyers, as well as some Asian buyers (notably from Hong Kong), complete this picture, often with a very targeted search on the most iconic locations in Ibiza or Majorca. This diversity of origins is pushing quality standards upwards: materials, views, energy performance, concierge services.
Demand, regulations and holding costs
In the Balearics, market balance rests on a delicate tripod: foreign demand, tourist regulations and holding costs. 🎯
The role of foreign buyers and the regulation of tourist uses
Foreign buyers account for a very significant share of transactions, particularly in:
- mid- to high-end properties;
- the most sought-after coastal and urban areas;
- properties suitable for mixed use: second home + holiday rentals.
Faced with tensions around housing for residents and the effects of mass tourism, the local authorities have tightened:
- regulation of tourist rentals (licences, zoning, restrictions in certain buildings or neighbourhoods);
- controls on short-term rental platforms;
- discussions on possible measures to curb speculation.
For an investor, this implies:
- systematically checking the planning and tourist status of the property in question;
- factoring in the scenario of mainly personal use if obtaining or maintaining a tourist licence proves difficult;
- seeking support from a local professional to secure the legal analysis.
Beware of holding costs: energy, co-ownership, transport
Beyond the purchase price, holding costs in the Balearics are a key factor that should not be underestimated. They can have a significant impact on the annual budget.
The main items to anticipate are:
- energy: air conditioning in summer, possible heating in winter, pool equipment;
- co-ownership charges: higher in residences with pools, gardens and services;
- maintenance: garden, pool, minor works, especially by the sea;
- transport: regular air fares, car on site, parking;
- local taxation: property taxes, specific taxes, possible tourist taxes depending on use.
Before buying, it is useful to:
- ask the seller or the building manager for a breakdown of annual charges;
- simulate a holding cost over 5 to 10 years to check consistency with your income;
- allow a 10 to 20% safety margin for contingencies (works, price increases).
Outlook 2026–2030: sustained pressure on supply
Looking ahead to 2026–2030, the Balearic property market is likely to remain under pressure, even if the rate of price increases may vary depending on economic conditions and regulatory decisions.
Continued pressure on supply
Several factors suggest that pressure on supply will remain strong:
- island geography limiting urban sprawl;
- political desire to preserve the environment and landscape;
- strict and sometimes lengthy building permit procedures.
In this context, the structural scarcity of certain segments (sea views, seafront, historic districts) will continue to support values, especially for properties that are:
- well located and properly maintained;
- with outdoor space (terrace, garden, pool);
- offering good energy performance.
Value supported by air accessibility
A key factor in the 2026–2030 outlook remains the air accessibility of the Balearics. Links with major European cities directly determine:
- the volume of tourists each year;
- the ease of use for second homes;
- the attractiveness for remote workers and mobile profiles.
If air connections remain plentiful and competitive, the Balearics will continue to attract a large flow of international buyers, which will:
- support prices in the most sought-after segments;
- reinforce the “liquidity premium” on well-located properties;
- create more pronounced cycles in the most tourist-driven areas.
Conversely, a lasting reduction in flight availability or a sharp rise in transport costs could:
- push some buyers towards other, better-connected destinations;
- encourage owners to favour more residential rather than tourist use;
- lead to a normalisation of prices in areas most dependent on short-stay tourism.
For a long-term project, it is worth asking a few simple questions:
- does the chosen island and area have good air links with your country?
- are your planned uses (frequent stays, long periods, remote work) compatible with this accessibility?
- does the property remain attractive if travel conditions change (costs, flight frequency)?
By keeping these parameters in mind, you can better assess the resilience of your investment through to 2030 and beyond. ✈️
