Balearic Islands real estate market update – mid-year 2025
The Balearic Islands continue to stand out as one of Europe’s most desirable and resilient real estate markets. The first half of 2025 has once again confirmed the region’s strong fundamentals and its enduring appeal to both lifestyle buyers and international investors.
A market defined by stability and strength
According to data from the Balearic Statistics Office (IBESTAT), a total of 7,313 homes changed hands across the islands during the first six months of the year. This figure is slightly above the ten-year average and represents one of the strongest half-year performances on record. The data clearly show that the post-pandemic period of adjustment has evolved into a phase of stable, sustainable growth across the archipelago.
Mallorca continues to lead activity, while both Ibiza and Menorca also reported transaction volumes above their long-term averages — a clear indication of balanced market strength across all islands.
Supply constraints and new construction trends
The Balearic Islands continue to be seen as a safe and stable investment, thanks to limited building land and steady international demand. However, low supply — especially in sought-after coastal and lifestyle areas — remains one of the market’s biggest challenges.
The good news? New construction activity is picking up. In the first half of 2025, the Balearic authorities reported a 44% increase in residential building projects. According to the College of Technical Architects in Mallorca, there's also a noticeable shift toward apartment developments. This trend could help ease some of the pressure by gradually expanding housing options and improving overall accessibility.
Engel & Völkers insights: quality over quantity
At Engel & Völkers, our own half-year results mirror these trends. Transaction volumes and average prices continued to rise across all islands, driven primarily by the premium segment. Buyers remain ready to invest in properties that combine lifestyle, design, and long-term value — a hallmark of the Balearic market.
Our market updates are grounded in a solid analytical approach — combining official sources like IBESTAT, the Land Registrars, the Housing Ministry, and the Notary Chamber with our own exclusive sales data. Unlike reports based solely on property listings, which can be outdated or duplicated, our methodology offers a clearer, more accurate picture of what’s really happening in the market — helping you make informed decisions with confidence.
Spotlight on Ibiza: a year of strong growth
Ibiza registered 939 home sales in the first half of 2025 — a notable 28% year-on-year increase and 5% above its ten-year average. The island’s enduring appeal remains rooted in its unique blend of natural beauty, cosmopolitan lifestyle, and solid investment potential.
International buyers continue to focus on second homes that offer both personal enjoyment and rental income opportunities, with tourist rental licences (ETV) in high demand. Properties that combine design, functionality, and authenticity — such as Blakstad-style villas, boho-chic fincas, and contemporary homes with eco-conscious features — are especially sought after. Buyers are increasingly attentive to sustainability, wellness amenities, and dedicated home office spaces, reflecting new lifestyle priorities. Sea views, privacy, and proximity to beaches and the marina remain decisive factors, with the most desirable homes blending a distinctly “Ibiza” aesthetic with modern comfort and strong rental potential.
Outlook: sustainable growth ahead
The first half of 2025 reaffirms that the Balearic Islands remain a safe haven for both lifestyle buyers and investors. With robust demand, limited supply, and ongoing development activity, the market outlook points toward continued stability and long-term value creation.
At Engel & Völkers Ibiza, we’re here to help you make the most of these opportunities. Whether you’re looking to buy your dream home or sell a property in this sought-after location, our local expertise and data-driven approach ensure you’re in good hands. Want to dive deeper? Read our full Half-Year 2025 Market Report here.
Ready to take the next step? Get in touch with us today and let’s start your journey in the Ibiza real estate market.
