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Balearic Islands: Housing Becomes a Luxury — Who Will Stay on the Island?

Why Housing in Mallorca Keeps Getting More Expensive

Housing in Mallorca is rising due to limited supply, high demand and strong pressure from second homes and international buyers.

Published: April 22, 2026
Balearic Islands: Housing Becomes a Luxury — Who Will Stay on the Island?

Answer

Why is housing in Mallorca becoming so expensive?

Housing prices in Mallorca are rising because demand is high while the supply of available homes remains limited. New construction is slow, building costs have gone up, and internationally wealthy buyers often add extra pressure by paying quickly or in cash. Local planning policy and the use of second homes also play a role.

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