Choosing your island, your use and your budget in 2026
Before falling in love with a turquoise cove, start with three simple questions:
- What will be the main use of the property (second home, remote work, rental investment, future retirement home)?
- How many weeks per year do you realistically plan to spend there?
- What overall budget (purchase + fees + renovation + running costs) are you willing to commit without putting yourself under pressure?
The answers will naturally guide your choice of island. Each Balearic market has its own logic, prices and administrative constraints. It’s better to factor them in from the very start 😉.
Mallorca: liquidity and services (Palma, heritage north-west)
Mallorca is the most versatile island for a real estate project. It combines:
- a true regional capital, Palma, with hospitals, international schools, culture and a very well-connected airport;
- highly prestigious areas in the north-west (Deià, Sóller, Valldemossa), sought after by an international clientele established there for many years;
- more family-oriented or affordable markets in the centre of the island or in certain seaside resorts.
For a buyer looking for:
- liquidity (ease of resale);
- services open all year round;
- a good balance between local life and tourist activity,
Mallorca is often the best compromise.
Palma in particular is well suited:
- to remote workers wanting an urban apartment with direct flights to Europe;
- to investors targeting medium-term rentals (regulated) rather than pure short-stay holiday rentals;
- to cautious retirees who want to stay close to healthcare and services.
According to recent data from Green Acres, real estate in Palma de Mallorca shows an average budget of around €385,000 for generous floor areas (about 137 m²), which makes it an attractive entry point for a year-round or semi-relocation project.
The more heritage-focused north-west tends to attract:
- long-term buyers who are sensitive to the landscape and the charm of the villages;
- buyers with already solid budgets, able to absorb high prices and significant maintenance costs (older homes, steep plots).
Ibiza-Formentera: high-end, very large budgets
Ibiza and Formentera clearly sit in a high-end market, even ultra-prime in some areas. Prices are significantly higher than the Balearic average, with:
- strong and loyal international demand;
- limited supply, especially for well-located villas with sea views or quick access to the beaches;
- strong pressure on land and building permits.
These islands are best suited to the following profiles:
- buyers looking for a prestige villa, with or without rental potential;
- very wealthy investors seeking a rare asset likely to preserve its value over the long term;
- people who already know the island and its rhythm well, and who want to return regularly.
However, you must be prepared to accept:
- very high purchase budgets (and associated ancillary costs);
- a more seasonal lifestyle in some areas, very lively in summer and much quieter off-season;
- strong competition for quality properties, with sometimes short decision deadlines.
Formentera, which is even rarer, is more of a connoisseur’s market: little supply, a lot of demand, firm prices and an extremely protected environment.
Menorca: family second homes, a gentler year-round pace
Menorca offers a very different feel from the two other main islands:
- a calmer rhythm, a more family-oriented atmosphere;
- less real estate pressure, even if prices have risen in recent years;
- a very well-preserved natural and coastal heritage, with fewer large infrastructures.
It’s a good option if you’re looking for:
- a second home for you and your loved ones;
- a quieter environment, away from very party-oriented nightlife;
- an overall cost of living and maintenance potentially more reasonable than in Ibiza.
Menorca is well suited:
- to families who want to return to the same place every year;
- to buyers who care more about nature and scenery than nightlife;
- to those who prefer village or small-town life.
In return, resale liquidity may be slightly lower than in Mallorca or Ibiza, simply because demand is more targeted. It is therefore important to choose a solid location: proximity to services, access to beaches, good transport links.
Who buys in the Balearic Islands: a firmly international market
Whichever island you choose, you are entering a highly internationalised market. According to Green Acres data for all the Balearic Islands, the most active foreign buyers are the French (around 20% of enquiries), followed by the Swiss (13%), the British (11%) and the Italians (10%), ahead of the Germans and Americans.
Median budgets remain high: Swiss clients, for example, position themselves around €755,000 for properties of about one hundred square metres, while German buyers often go beyond one million euros for large family villas. This depth of international demand helps support prices and ensures, in good locations, a certain liquidity on resale.
Entry points and points of caution
Once you’ve chosen your island, you still need to find the right way into the market… without neglecting more technical issues. A beautiful setting can sometimes hide a poorly managed condominium or restrictive usage rules.
Reference €5,090/m²; check charges, works and usage rules
Recent statistics give a benchmark of around €5,090/m² for real estate in the Balearic Islands, all situations combined. But this is an average, masking large disparities between:
- well-connected urban areas (Palma, some districts of Ibiza);
- the sought-after villages of north-west Mallorca;
- more peripheral or more family-oriented areas.
To secure your purchase, a few key habits are essential:
- analyse the condominium charges: maintenance of common areas, pool, garden, security, property management company;
- anticipate upcoming works (façade, waterproofing, lift, energy renovation) and their likely cost;
- check the usage rules: whether tourist rentals are authorised or not, minimum rental periods, rules set by the owners’ association.
On some islands or in some municipalities, short-term seasonal rentals are heavily regulated, sometimes banned in apartment buildings. If your project depends on rental income, this check is non-negotiable.
In addition, plan from the outset for:
- purchase costs (notary, taxes, intermediaries);
- local property taxes;
- management costs if you use a local service provider.
Seasonality and off-summer availability: arbitrating according to your project
The Balearic Islands clearly live to the rhythm of the seasons. To buy well, you need to ask yourself not only how much the property is worth, but also when you will really be able to enjoy it.
A few points to observe before choosing your island:
- Opening of shops and restaurants outside summer: some villages empty out in winter, others remain active.
- Frequency of flights and ferry connections in low season: more frequent in Mallorca, sometimes reduced for Menorca or Ibiza.
- The level of activity you want in autumn and spring: total calm, moderate local life, or continuous tourist buzz.
Depending on your project, the trade-offs change:
- For a base for year-round visits with a few stays outside summer, Mallorca (and especially Palma) offers the best continuity of services.
- For a purely summer use, Ibiza-Formentera or certain seaside areas of Menorca may be sufficient, provided you accept the seasonality.
- For a semi-relocation project (several months a year), you need to look closely at: schools, doctors, open shops, transport, but also permanent neighbours.
A good habit is to visit the island and the neighbourhoods you’re targeting off-season, even briefly. This gives a more accurate picture of real life there, far from the summer postcard images 🌞.
