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When Prices Rise but Sales Fall: Mallorca Between Bubble and Everyday Hardship

Prices rising, sales falling in Mallorca: what’s driving the trend

Mallorca sees higher prices per square meter even as overall sales shrink. Learn what’s driving the gap and who’s buying.

Published: August 05, 2026
When Prices Rise but Sales Fall: Mallorca Between Bubble and Everyday Hardship

Answer

Why are property prices in Mallorca rising even as sales fall?

In Mallorca and the Balearic Islands, the average price per square meter rose to €4,311, a 3.3% increase from the previous quarter, while total transactions fell 13.1% from a year earlier. Existing homes rose in price by about 3.9% while new builds rose only 0.6%, and new-build sales dropped sharply. Foreign buyers and limited land help sustain higher prices even as volumes shrink.

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