Balearic and mainland estate agency group Porta Mondial have published a comprehensive report of the Balearic second/holiday home property market.

Porta Mondial commissioned Professor Marco Wölfle of the Centre for Real Estate Studies (CRES)  to undertake the report. We will not bore you with the pages of data qualification, but we gave it good consideration and it seems a thorough and well evidenced survey of the market.

The results are based on 600 properties in Ibiza, 6,000 in Mallorca and 2,100 in Menorca. Formentera was not included. Though the report is aimed specifically at holiday/second homes, most of the information and findings are relevant for all types/motivation of property purchase.

Property Sales

The property market in the Balearic Islands has almost completely recovered. Figures from property transactions have been rising steadily since 2013 and are now at about 80% of the level seen in the boom years 2006 and 2007, before the Spanish property crisis of 2009 in the aftermath of the global financial crisis.

  • Since 2013, the number of transactions in the Balearic Islands has more than doubled.
  • On Mallorca and Menorca, sales have increased by 127%, while sales in Ibiza have doubled.
  • The long-term trend suggests a very stable situation: more than 70% of all properties sold in the Balearics are on Mallorca. The remaining 30% are split between its two neighbouring islands.

Holiday & 2nd Home Market

“There is something suitable for everyone.” This could be the motto of the Balearic Islands.

Ibiza, for example, offers a rich selection of luxury properties and high-end holiday homes.

Mallorca offers a thoroughly usable infrastructure. The largest of the Balearics usually has connections to all major destinations on the European mainland several times a day and has long had the most sales of the three Islands.

Holidaymakers who are focused on the summer months and are perhaps looking for a little more peace and quiet will find the right offering on Menorca. When one takes the size of Menorca into consideration, it has the largest inventory, the most sales, and the most holiday properties on offer. It also offers good deals on more modest, starter properties.

Distribution & Location

There are regional variations in the market on the three islands. At some 3,600 km2, Mallorca is also significantly larger than Menorca (695 km²) and Ibiza (570 km²).

While Menorca has only about 136 inhabitants per square kilometre, its two neighbours are almost twice as densely populated at about 240 inhabitants/m² each. As a result, the property inventory differs among the three islands.

For this study, Ibiza was divided into 5 regions, Mallorca into 9, and Menorca into 4.

On Ibiza, Eularia, Sant Josep, and Eivissa each account for just under one-third of the properties on offer, where Sant Joan or Sant Antoni each only have about 5% of the island’s total offerings.

The significantly larger Mallorca was divided into 9 regions for this study. In the first quarter of 2018, around 30% of all holiday properties on Mallorca were offered in the south-west region. This trend has remained stable over time, with about one-third of the properties on offer each year being found there.

One-fifth of the holiday properties on offer have traditionally been located in Palma City and its surroundings. The remaining 50% are distributed almost evenly among the six other regions, with shares ranging from 12% in central Mallorca and more than 10% in the north to 7% in the north-east.

The lowest supply is found in the north-west and south-east regions with just 6% each. It is remarkable that the south-east, which is one of the larger regions in terms of area, has the lowest amount of property available and only half of that on offer in the similarly-sized central region. The south-west, on the other hand, which is half the size, has five times as much property on offer. The transaction figures in the south-east are also low, indicating a stable, yet small market.

On Menorca, every tenth property is offered in the tiny northern region, while the south has the strongest market with 35% of all holiday properties on offer. Mahon and Ciutadella, meanwhile, had one-quarter each of the island’s property offerings.

Quality of Fittings

Every second holiday home in the Balearic Islands is of an upscale or luxurious nature. With 80% of the properties on offer being upscale or luxurious, Ibiza has  the highest density, followed by Mallorca at 46%. At just under 19%, Menorca has significantly fewer upscale and luxurious properties in all its regions.

Despite being almost the same size as Menorca, Ibiza has more than three times as many holiday homes in the €3–5 million price range and six times as many in the €5– 10 range.


Ibiza is clearly characterised by upscale and luxurious properties. At least 10% of each region’s offerings are in the luxury class. The market in Sant Joan is particularly exclusive; one in three properties there are in the luxury segment. The great majority of the other properties on offer are upscale.

The market for simple properties on Ibiza is negligible and, in Eivissa, there are barely any simple or medium-priced properties on offer at all. If one is set on buying in Ibiza and would still like to start in the medium price segment, we recommend looking at Santa Eularia, Sant Josep, or Sant Antoni, where such properties make up between 20% and 25% of those on offer. In Sant Joan and Eivissa, on the other hand, only one in ten holiday homes fall into this category.


Luxurious and well-equipped holiday homes make up 60% to 70% of the properties on offer in the two Palma regions and the south-west. In the area immediately surrounding Palma and in the south-west, one in five properties is in the luxury segment, a share twice as high as on the island as a whole.

30% of the holiday homes on Mallorca are in medium-priced segment.

At 35%, an above-average number of medium-priced properties are located in the north and south regions. The central region is just behind with 33% of properties in this segment. This stands in contrast to the two Palma regions, where just over 20% of the offerings are medium-priced. This applies almost equally to the number of simple properties on offer. Slightly more one of every ten holiday homes in these regions is of the simple category.

Nevertheless, there are many inexpensive, simple properties to be had in the centre of the island. In 2018, every other property on offer in that region fell in this category. The southern region, with 42% of its properties classified as simple, also offers opportunities for entry-level buyers.


Relatively few luxury properties on offer, with no more than 5% of the listings in any region.

As a result, the rare luxury property that does come up for sale on Menorca is comparatively expensive at €10,000 or more per square meter.

The island is perhaps best suited for entry-level buyers seeking holiday homes or for those who would rather holiday in the summer months. If you are in the market for a luxury or upscale home and have decided on Menorca, you should schedule some time to hunt for available properties and actively approach local experts. After all,

only one in ten properties on offer on Menorca falls into these two higher-priced market segments.

2018 Prices in the Balearics

There are clear differences among the three islands, not only in terms of fittings, but also home prices.

Depending on the fittings and location, average prices can range from €2,200 to over €8,300 per square metre. The largest range in prices can be seen in Mallorca, while Ibiza’s market is characterised with a high number of luxury properties and Menorca’s by more medium-priced and simple properties.

As  a rule of thumb, a higher price on Menorca is roughly an entry-level price on Ibiza.


  • Island average: €7,138 per square metre
  • Lowest and highest average regional prices: €4,973 and €8,322

The island even has properties priced at more than €10,000 per square metre, especially in the exclusive Eivissa region.

Average prices at €6,800 and €6,300 in Sant Josep and Santa Eularia respectively are closer to prices in Munich.

If one considers the spreads in each region, great differences become apparent on Ibiza. In Sant Antoni, prices are closer to the average (± €1,600). In Sant Josep and Eivissa, the price structure is significantly different (± over €3,200).


  • Island average: €5,031 per square metre
  • Lowest and highest average regional prices: €3,337 and €6,332

The south-west, Palma city, and the area immediately surrounding Palma have higher-priced properties.

In addition to an average price of €3,610, the generally less expensive south also offers very good opportunities for starter holiday homes. There are properties here priced around €2,500. Similar entry-level prices can also be found in the centre of the island and in the north.


  • Island average: €2,912 per square metre
  • Lowest and highest average regional prices: €2,547 and €3,176

Menorca is a good entry-level island, especially for those who do not want extensive tourism-orientated infrastructure, but instead simply want to enjoy the summer months.

Menorca has the most uniform price structure of the three islands. The gap between top- and entry-level priced properties on Menorca is the closest of the three. This is especially true in the north. More upscale properties can be found here at comparatively lower prices here.

Entry-Level & Premium

  • Bargains (the lowest priced 5% of the market) top out at €350,000 on Ibiza,
  • €300,000 on Mallorca, and €103,000 on Menorca.
  • The top end of the market (highest priced 5%) starts at €6,250,000 on Ibiza,
  • €5,950,000 on Mallorca, and €1,960,000 on Menorca.
  • The average property on Ibiza is three times more expensive than on Menorca.
  • Land is becoming scarce, especially for expensive properties on Ibiza. The largest properties on Menorca are more than double the size of those on Ibiza. This effect is particularly noticeable with luxury properties.

Front Line Premium

In holiday destinations, even a special pool will not replace a sea view. Together, the Balearic Islands have more than 1,100 km of coastline.

As the smallest island, Ibiza only has 210 km of shoreline, making a sea view there more expensive and scarcer than on Mallorca, which has 550 km of beaches, more than half of the islands’ total. A good quarter of the three islands’ available coastline is on Menorca.

In general, even near the beach, a special sea view in rare locations and near local highlights can mean price premiums of between 20% and 90%.


  • Top premium in Sant Josep: +67% for first sea line Island average for first sea line: +33%
  • Premium for a pool: +12% on average Premium for a high-end pool: +24%


  • Top premium in the north-west: +145% for first sea line Island average for first sea line: +94%
  • Premium for a pool: +20% on average Premium for a high-end pool: +44%


  • Top premium in Mahon: +81% for first sea line Island average for first sea line: +46% Premium for a pool: +3% on average
  • Premium for a high-end pool: +23%


Holiday homes in the Balearic Islands remain in demand. There is a wide selection that appeals to different buyer groups.

The widest range of properties on offer can be found on Mallorca, which is particularly attractive due to its year-round accessibility and existing infrastructure.

But the somewhat quieter Menorca is also attractive with low entry-level prices.

Pure luxury and upscale holiday properties can especially be found on Ibiza.

The report is based on properties from agents including Savills Ibiza, who offer this 10 bedroom and 7 bathroom villa, comprising a main house, a separate apartment and 2 annex suites, though its sumptuous North African inspired gardens and terracing may be its immediate draw for most. Total 548m2, priced at €3,950,000.

Can I Buy?

For many people the question is not whether they want to buy, but whether they can. Bank mortgages in Spain do not resemble their UK counterparts—and nor do the costs involved in property purchase—Spain’s are much higher. We asked Bettina Lorenz of Balearic Mortgage Services for the key numbers—how much can you borrow, and how much are the costs. Here is what Bettina told us.

“The Spanish banks are much more willing to lend now than they were during and immediately after the mortgage crisis. The Spanish mortgage market is actually very competitive., however the banks are still cautious about the non-resident clients they will lend to.

“Generally speaking, the client needs to have a deposit amount of minimum 30-40% of the purchase price of the Ibiza property for sale.

“Plus they will need additional funds to cover the taxes and expenses involved in the purchase – I usually advise to calculate between 12-14% to cover these expenses.“

Useful information. So in practical terms, if looking to buy a 500,000€ property, you will need  around  175,000€ for the deposit and a further 65,000€ for fees—a total of 240,000€ to have the bank sit up and take notice.

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