Britons should ignore the politics – it’s a GREAT time to buy in Mallorca (and prices are rising) says a property expert
No one really thinks of the Balearic Islands of Mallorca, Menorca and Ibiza when it comes to political drama, but late last year that changed.
Suddenly, the region made headlines around the world for all the wrong reasons.
It stemmed from an attention-seeking move by the hard-left nationalist party Mes per Mallorca, which proposed a law to restrict non-residents from purchasing homes across the Balearics unless they had lived there for five years.
Realistically, the proposal never stood a chance – every real estate agency, along with our industry body the Balearic Association of Real Estate Agencies, knew that from the outset.
Balearic boom: Hans Lenz, managing director at property agent Engel & Völkers in Mallorca, says the market is active and prices are rising
When the Balearic Parliament threw out the proposal in February, president Marga Prohens called it ‘time wasting’.
The reality is that our doors have and will always be open to British non-residents.
Engel & Völkers’ latest market findings for 2025-2026 should reassure prospective British purchasers and put any spurious political theatrics to bed.
Property prices across the islands were up 9 per cent.
Meanwhile, house prices in the UK went up by 1.2 per cent in the year to February 2026, according to the Office for National Statistics.
Transactions in the Balearics also increased by 6.5 per cent, while the British market remains sluggish.
Property values here have shown long-term stability, and that is making buyers feel confident to invest.
Who’s buying in the Balearics?
Our data shows transactions by German buyers account for 48 of buyers in the Balearics, followed by the Britons at 10 per cent.
Britons have been a permanent and welcome presence across the Balearics and mainland Spain for many decades.
Across the islands, the largest share of property transactions is within the €1-5million (£867,000 to £4.3million) range. British buyers view property here not only as a traditional long-term investment, but as a permanent place of residence or second home destination.
In stark contrast to the current global unrest, the Balearic Islands offer one of Europe’s most stable, secure and beautiful destinations.
Post-pandemic, our robust economy has continued to grow. In 2025 GDP rose by 2.9 per cent according to Caixa Bank, above the Spanish national average of 2.4 per cent. Our political situation is also calm.
High end: The majority of property deals in Mallorca are for £867,000 or above, such as this designer apartment in Palma which is on the market with Engel & Volkers for €1.49m (£1.29m)
Spacious: The apartment in the Santa Catalina district of the city is airy and light
The apartment has two beds and two bathrooms and comprises 103 sq m of living space
The Balearics offer a high-quality lifestyle with a diverse international appeal that is driving buyers from the UK. Everything aligns, from the climate to the gourmet food scene, the safe secure environment, as well as the rich culture.
The islands also have reliable transport connectivity, excellent infrastructure and outstanding international schools. All of these factors explain why demand for property is outpacing supply.
Limited development land, strict regulations and controlled development all ensure that homes in the island are always in high demand.
This scarcity brings peace of mind to homeowners, and is important in attracting British and overseas buyers as it promotes price stability and strengthens the value of long-term property investments.
Views: This house in the Amber Village development in Port Andratx, Mallorca overlooks the Tramuntana World Heritage Site and is on the market with Engel & Volkers for €2.95m (£2.56m)
Dream home: It features its own swimming pool as well as a private terrace and elevator
Expansive: The property has 171 sq m of living space and is part of a 24-home development
Three islands have distinct property markets
When British buyers think about the Balearic Islands, I’m sure they perceive them to be pretty homogenous as a property market.
However, it’s important to emphasise that all three islands retain their independence, sharing some characteristics but also having an individual feel.
Mallorca is the clear front-runner, accounting for 80 per cent of property sales in the Balearics. However, Ibiza and Menorca are on the upward trajectory.
Ibiza still attracts wealthy British buyers and demand keeps growing strongly. Meanwhile, Menorca retains a peaceful authenticity with a stable property market that offers buyers an opportunity to enter the market at a moderate price level.
So, what presented as political scaremongering a few months ago, catching the attention of the international press and momentarily ruffled feathers in the UK and around the world, was in reality nothing but a storm in a teacup.
Any ban on buying property relating to residence or nationality would go against not only Spanish constitutional principles, but contravene European Union rules on the free movement of capital; making the legal obstacles virtually impenetrable.
The upshot is anyone from the UK thinking about buying property in the Balearics has nothing to fear, our doors are open and the welcome mat is out.
Hans Lenz is managing director at Engel & Völkers, Mallorca south west.
