Who Is Buying Palma Empty? Germans, Swedes and the Changing Neighborhoods

Who Is Buying Palma Empty? Germans, Swedes and the Changing Neighborhoods

Key question: Are purchases by prospective buyers from Germany and Sweden displacing local demand in Palma — and what are the consequences for tenants, neighborhoods and the urban landscape?

What the numbers say

The notary chamber's statistics for the period December 2024 to November 2025 show: among foreign buyers, Germans represent the largest share. Specifically, about 31.8 percent of all purchases made by non‑Spaniards are by German buyers. Overall, nearly 30 percent of all completed purchase contracts in Palma come from abroad.

In some postal code areas the market is dominated by purchases from abroad. Most notable is the area around Avinguda Jaume III: here non‑Spaniards account for about six out of ten purchases. Beach areas such as Can Pastilla and Playa de Palma also show high shares of foreign ownership in the Balearic Islands.

Which neighborhoods rise — which fall

Price dynamics are unevenly distributed, a pattern noted in Palma in Transition: Where Incomes Soar — and Who Still Owns the City. In neighborhoods like Santa Catalina, Son Rapinya and Son Vida, prices per square meter climbed by more than a third. The historic center tops the list of the most expensive square metres: roughly €6,102 per square metre are currently recorded there. At the same time there were declines: in the Sindicat area prices were significantly lower in the period mentioned (around -15.6 percent), and in Nou Llevant, El Molinar and Portitxol values fell by about seven percent.

Critical analysis

The raw number of purchases says nothing about use: is a property used as a primary residence, a second home, rented long‑term, or purely a holiday apartment? Notary data distinguish between resident and non‑resident buyers, which helps but is not complete. Therefore questions remain open: how many of the sales lead to flats permanently removed from the long‑term rental market, and how many are part of the trend where foreign renters displace locals? How many properties stand empty and are used only sporadically?

Another point: price increases on well‑equipped, centrally located streets directly affect the neighbourhood. Anyone who moves around Palma daily notices it in changed shop windows, more estate agents and cafés where Swedish or German is heard more often. These changes are not abstract — they change where people shop, where children find childcare places and how noisy a street is in the evening.

What is missing from the public debate

The debate often revolves around percentages and headlines. Missing building blocks are concrete figures on the use of purchased properties, data on the duration of vacancies and information about the extent to which buyers pursue tourist business models. Reliable data on how loan approvals, local tax rules or international buyer programs affect demand are also scarce.

A scene from everyday life

Early morning on Carrer de Sant Miquel: delivery vans parked, a woman with a shopping bag pauses, a site manager discusses a new balcony project with tradesmen, and café crockery sounds from a bistro. A Swedish‑speaking group strolls toward Plaça Major with filter coffee in hand. Moments like these show how quickly neighborhoods mix — and how thin the line between a lively city and displacement can become.

Concrete approaches

City, regional and national levels must work together. Practical proposals for Mallorca include: greater transparency about purchase purposes (publishing anonymised data on property use), targeted support for local first‑time buyers (loan subsidies, grants or tax relief), a progressive tax on permanently vacant properties and stricter controls on conversions of housing into tourist units, and on investors turning old rental buildings into condominiums.

Additionally, municipal housing funds or community land trusts could secure land and new builds for permanently affordable housing. Could sales taxes (ITP/IVA) be structured so that frequent resales or conversions into holiday rentals become less attractive? Technically possible, but it requires political majorities.

What is immediately feasible

The Palma city administration can shortly review whether building permits should be more strongly tied to permanent residential use and whether rental licences can be enforced more consistently. Intermunicipal projects to create social housing, financed by surcharges on real estate transactions in hotspots like Jaume III, would be another lever.

Conclusion

The notary chamber's figures show a clear pattern: foreign buyers, above all Germans and Swedes, dominate many parts of Palma. That alone is not a crime, but it changes the fabric of the city — noticeably. People living in Palma feel the effects in rent, noise and the available offering. Restoring balance requires data, rules and fast, concrete measures. Otherwise streets risk losing not only their prices but also their communities.