Fewer Foreign Buyers on Mallorca Real Estate as Prices Rise and Supply Shrinks

The Balearic Islands recorded a decline in foreign buyers in the first half of 2025. Reasons: rising price per square meter and tight supply – a trend that many residents are already feeling.

Decline in foreign buyers: You can feel it on the island

This morning, over a strong espresso at Passeig Mallorca, I spoke with a real estate agent who has been selling houses in Palma for years. She said nothing new, but aptly: \"People are not leaving, they are just calculating differently.\" And exactly that is shown by the current numbers of the Statistical Information Center of Notaries (CIEN).

What the numbers say

In the first half of 2025, the number of properties sold to foreigners on Mallorca fell by about 6.8 percent—to 2,816 transactions. Only the Canary Islands fared somewhat worse with a decrease of about 7.7 percent. Nationwide, however, the share of sales to foreigners rose by about 2 percent; the leaders were regions in the north such as Asturias (+30.8%) and Castile and León (+25.9%).

Despite this decline, the share of non-natives on the Balearics remains high: about 35.3 percent of all sales. German buyers make up almost half of this group (around 50%), followed by Britons with about 11%.

Why fewer buyers

Broker associations speak of a \"market adjustment\": The price per square meter for properties bought by foreigners rose on average to around 4,896 €/m² (previous year: 4,492 €/m²). Compared with 2016, that's an increase of about 76 percent. For many prospective buyers, that's simply too much.

Since 2019 there has been a persistent rise in prices; during the pandemic there were sometimes strong increases in purchases by foreigners (2021: notable rise). From 2023 there was then a clear cooling: enormous declines in the first half (-31%) and also in the second (-20.7%). In 2024 the market stabilized somewhat: a slight decline at the start of the year, a small increase in the second half.

What does this mean for the island?

For residents, this means fewer viewings, but hardly any cheaper prices. Vacancies are hardly seen; properties simply change hands more slowly. For the municipality, the question remains: how can housing be made more affordable without choking the market?

In the end, it is a mix of supply, demand and expectations. The CIEN numbers clearly show that many buyers are currently looking at cheaper regions—or waiting. And if you pass by the cafe again next week, there may be two fewer prospective buyers in front of the listing on the board. A small sign, a big impact.