Why is Mallorca set to be in the spotlight in 2026?

Mallorca’s prime property market is entering a new, confident cycle.

Recent policy changes – have buoyed investor sentiment, while extensive infrastructure investment is elevating the island’s global reach.

Palma’s €550 million airport expansion, alongside the regeneration of the Paseo Marítimo waterfront and the new Club de Mar super yacht marina is reshaping mobility and enhancing long-term appeal. The island now has links to 166 destinations served by 52 airlines.

Improved connectivity has been a catalyst for strengthening inward demand. The launch of the New York–Palma direct route has accelerated interest from the US. Plus, with Etihad Airways due to launch a new three-times-a-week Abu Dhabi service from June 2026, Middle East interest is also likely to increase.

We anticipate the next few years will bring steady, sustainable growth, with prime prices projected to increase by roughly 2% to 4% in 2026.

Despite periodic national rhetoric around higher taxes for foreign buyers, such measures remain unlikely. In contrast, the Balearic Government has adopted a pro-investment stance, raising the wealth-tax threshold from €700,000 to €3 million in 2024.

Who’s buying?

Mallorca’s buyer profile has transformed. Today’s purchasers are younger, globally mobile professionals, often in their thirties and forties, drawn by lifestyle, safety and flexible working. The median age of Knight Frank’s prime buyers on the island has fallen to around 46.

Two groups dominate:

1. Second-home owners seeking extended-stay bases rather than short holiday use.
2. Semi-relocators – predominantly British and American buyers spending up to six months a year on the island, often in their fifties with children having recently left for university.

Nationality mix is diversifying.

Germans remain the largest non-resident group in the prime segment accounting for 59%, but their dominance is easing as British, Spanish mainland and US buyers increase their presence. American interest remains modest in absolute terms but is rising quickly, supported by direct flights, tax stability and Mallorca’s cultural and lifestyle appeal.

Where’s in demand?

The south-west – from Port d’Andratx to Bendinat and Portals – retains its blue-chip status, with sea-view villas surpassing €15 million. German, British and Nordic buyers remain strongest here.

In the north-west, Deià, Sóller and Valldemossa remain highly desirable among design-focused buyers, though stock levels – particularly between €6 million and €10 million – are exceptionally tight.

Arguably, the east coast has become the story of 2025. Santanyí, Porto Petro and Porto Colom are experiencing a renaissance, with transactions strengthening. Buyers are drawn to authenticity, privacy and significantly better value: high spec 500 square metre villas are typically between €6 million and €6.5 million, roughly half the price of those in the southwest.

Why They’re Buying

Security, political stability and quality of life remain Mallorca’s strongest drawcards. Buyers consistently highlight the island’s excellent healthcare, led by Quirónsalud Hospitals in Palma, and its network of top-tier international schools such as Queen’s College to the west of Palma and the Rafa Nadal School in Manacor.

Add in German-quality construction standards and the ease of reaching almost any part of the island within an hour from Palma Airport, and Mallorca offers a rare blend of comfort and connectivity.

For many British and American professionals, the island represents a “cultural middle ground” – safe, sophisticated, and effortlessly European.

What’s selling?

Prime transactions remain concentrated between €5 million and €8 million, with strong appetite for turnkey, modernised fincas.

Pricing remains stable island-wide, with small price increases year-on-year evident in Deià and Sóller, indicating the continued appeal of tried and tested prime markets.

Outlook: Steady Growth, Enduring Appeal

With a younger buyer base, improved connectivity, limited supply and substantial infrastructure upgrades, Mallorca’s fundamentals remain robust. Prime values rose around 3% in the last 12 months and are forecast to rise by similar levels in 2026. The island has matured into a year-round lifestyle destination – a secure, low-volatility European safe haven with deep, diversified international appeal.

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