The real estate market in Mallorca through the eyes of ABINI
Mallorca is more than just a tourist destination —it is a sought-after location where international buyers dream of living, investing, and building a future. This means, the role of competent real estate professionals on the island is essential to ensure secure, sustainable, and well-informed transactions. Daniel Arenas, President of ABINI — the Balearic Association of National and International Real Estate Agencies — since February of this year and co-founder of the boutique agency Mallorca Site, shares his perspective on the present and future of the island’s property market, regulatory challenges, emerging buyer profiles, and the critical role of expert advice. This is an important read for anyone wanting to understand the current state of the sector and where it is heading.
ABINI’s Current Role
- Professionalization of the sector: We are committed to ongoing training, ethical compliance, and collaboration between agencies. The ABINI stamp should stand for trust and reliability.
- Market regulation: We advocate for a fair and effective legal framework that protects all parties involved. The creation of the Official Registry of Real Estate Agencies of the Balearic Islands (ROAIIB) is an important step. Although still voluntary, this registry allows consumers to identify agencies that meet legal, educational, and insurance requirements.
- Dialogue with the public administrations: We work to ensure that ABINI is a respected and recognised voice, offering realistic and sustainable solutions to government bodies.
- Enhancing the value of our profession: In an increasingly digital and fast-changing market, it is important to remember that every transaction involves life-changing decisions. Our role is to advise, support, and provide security at every step of the process.
The Real Estate Market in Mallorca in 2025
In 2025, the real estate market in Mallorca continues to move at two speeds: while the premium segment remains strong, the general market faces significant challenges.
Transaction volumes have slightly declined compared to the second half of 2024, influenced by global political uncertainty (especially, the uncertainty generated from the proposed tariffs by the U.S.). However, international demand remains solid, especially in prime areas.
Domestic demand has also rebounded, particularly following recent interest rate cuts. That said, the lack of affordable housing — both for sale and rent — is holding back many transactions.
In the premium segment (Andratx, Son Vida, Bendinat, Santa Ponsa, Palma’s Old Town…), prices remain high due to structural factors: land scarcity, high construction costs, limited supply, and robust demand from buyers who are less price-or financing-sensitive.
As for primary residences, pressure is evident: young people and local families face significant challenges accessing housing. We’ve also observed a clear shift in the second-home segment, as many properties previously used for holidays are now being converted into primary residences — a trend accelerated by the pandemic. Buyer profiles are evolving, with a greater focus on homes suited for stable, long-term living on the island.
The Need for Real Estate Regulation
At ABINI, we maintain an ongoing dialogue with the Balearic Government to develop a clear, effective regulatory framework tailored to the region’s unique needs — even in the absence of a nationwide policy.
Our position is clear: regulation of the real estate industry cannot wait. Consumers have the right to know they are dealing with qualified professionals — with accredited training, licenses, physical offices, and mandatory insurance. Today, registration with the ROAIIB remains the strongest available guarantee of this.
Combating unqualified practices and ensuring professionalism in every transaction is a shared responsibility. We firmly believe the Balearic Islands can and should become a benchmark for real estate regulation across Europe.
Today’s Buyer Profile in Mallorca
Mallorca has evolved from a purely touristic destination into a place where people come to live, work, and build a life project. The buyer profile is increasingly global: Europeans, Americans, Asians, and Australians all see Mallorca as a place that balances lifestyle, international connectivity, and urban quality.
Many of our clients initially came as tourists and ended up becoming residents Remote work, international schools, air connectivity, and high quality of life have all played a key role in this transformation.
Today’s buyer is discerning and well-informed. They value energy efficiency, outdoor spaces, material quality, and integration into an international community. Virtual viewings and digital processes have become standard. We’re also seeing a growing awareness around sustainability and the environmental impact of properties.
The Importance of Expert Advice
Investing in Mallorca requires more than just a good location. Factors such as urban planning compliance, build quality, energy efficiency, and the orientation of the property are all essential for making sound decisions.
Now more than ever, expert advice is vital. Mallorca is not a standard market — it is shaped by personal aspirations, investment value, and increasing regulatory complexity. That’s why I always say: you have to buy with your head, your heart… and the right professionals by your side. In this sense, working with financing experts like Lionsgate Capital, the leading mortgage brokerage in Mallorca and throughout Spain, makes a significant difference.
We are seeing a shift in financing trends. Even in the high-end property segment — where cash transactions once dominated — many buyers are now strategically choosing financing to:
- Diversify their assets without tying up capital.
- Optimize tax planning, particularly for non-resident buyers.
- Take advantage of favourable conditions following recent interest rate cuts.
With a clear vision and expert guidance, Mallorca continues to offer extraordinary opportunities — but success depends on identifying and managing them with professionalism.
Article by Daniel Arenas
President of ABINI and Co-founder of Mallorca Site
Daniel Arenas is a real estate professional with over 20 years of experience in the Mallorcan property market. In 2004, he co-founded the boutique real estate agency Mallorca Site together with Gloria Rodríguez Martín.
Since February 2025, he has served as President of ABINI (Balearic Association of National and International Real Estate Agencies), an organisation that brings together more than 30 agencies committed to the professionalisation and development of the real estate sector in the Balearic Islands.
