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Housing Shortage Under Scrutiny: Can Puigpunyent Break the Price Spiral?

Why Mallorca’s Housing Prices Keep Rising

Mallorca’s housing prices are rising because supply is tight, demand is high and affordable rentals are hard to find.

Published: April 22, 2026
Housing Shortage Under Scrutiny: Can Puigpunyent Break the Price Spiral?

Answer

Why are housing prices rising so much in Mallorca?

Housing prices in Mallorca are being pushed up by a mix of limited supply, strong demand, tourism pressure and a shortage of affordable building land. In many places, the local housing market is also shaped by second homes and a weak supply of long-term rentals, which makes it harder for residents to stay in their own towns.

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