Complete Guide to Property Prices, Trends & Investment Opportunities in Calvià
Mallorca's real estate market has long been a beacon for international investors and lifestyle buyers, and the period between 2024 and 2026 is proving to be no exception. Despite global economic headwinds and a cooling of transaction volumes, the island has demonstrated remarkable resilience, particularly within its luxury segment.
Property prices have not only held firm but have continued their upward trajectory, cementing Mallorca's status as one of Europe's most stable and desirable property markets. This sustained growth is largely fueled by a consistent influx of high-net-worth foreign buyers who are drawn to the island's unique blend of sophisticated infrastructure, natural beauty, and unparalleled quality of life.
At the heart of this thriving market lies the municipality of Calvià, a region that has become synonymous with luxury and exclusivity. Home to some of the most prestigious marinas, golf courses, and residential areas in the Mediterranean, Calvià consistently commands property prices that are significantly higher than the island's average.
The Mallorcan property market in 2024 and 2025 is best described as a tale of two speeds. While the overall number of transactions has seen a notable slowdown, property values have continued to climb, driven by an insatiable appetite for luxury homes. This paradox highlights a market that is maturing and shifting, rather than declining.
In 2024, the Balearic Islands property market demonstrated robust health despite a decrease in sales volume. The average price per square meter in the region reached an impressive €4,707 in December 2024, marking a 13.2% increase from the previous year. This growth is particularly significant when contrasted with the 15-20% decline in the number of property transactions compared to the post-pandemic peak in 2022.
This data suggests that while fewer properties are being sold, the ones that are changing hands are of higher value, pushing the average price upwards.
| Metric | Value (2024) | Year-over-Year Change |
|---|---|---|
| Average Price/m² (Balearics) | €4,707 | +13.2% |
| Transaction Volume (Balearics) | Approx. 13,624 | -15-20% |
| Foreign Buyer Share | 32.6% - 38% | Stable |
The most defining characteristic of the current market is its clear division into two distinct tiers. The luxury segment, comprising properties valued at over €1 million, has become the primary engine of growth. Villas starting at €2.5 million and high-end apartments are in high demand, particularly from affluent foreign buyers who are less sensitive to fluctuations in European mortgage rates.
These rates, which have climbed from lows of around 1% to between 4% and 5.5%, have had a more pronounced impact on the mid-market and local buyers, leading to a cooling of demand for properties under the €1 million threshold.
International investors continue to be the lifeblood of the Mallorcan property market. In 2024, foreign buyers accounted for between 32.6% and 38% of all property transactions in the Balearic Islands, a figure significantly higher than the national average in Spain.
While German, British, and Scandinavian buyers remain the traditional pillars of this demand, there is growing interest from investors from Switzerland, Austria, the United States, and the Middle East. This diverse and wealthy buyer pool ensures a constant and stable demand for high-quality properties.
On the supply side, the market for holiday properties saw an increase of almost 8% in 2025, with new developments making up 17% of the available stock. However, strict building regulations and a focus on sustainable development mean that the supply of new, high-quality homes remains limited, particularly in prime locations.
This scarcity is a key factor driving price appreciation. Furthermore, properties with premium features such as sea views, modern architecture, and high-quality swimming pools command a significant price premium. A well-designed pool, for instance, can increase a property's value by as much as 40%.
Nestled in the southwest of Mallorca, the municipality of Calvià has firmly established itself as the island's most exclusive and sought-after real estate destination. It is a region of stark contrasts, where glamorous superyacht marinas and designer boutiques coexist with tranquil, traditional villages and rugged mountain scenery.
As of August 2025, Calvià ranked as the fourth most expensive municipality in the Balearic Islands, with the average price for a second-hand property reaching an impressive €6,925 per square meter. This represents a staggering 40% premium over the regional average and is over 190% higher than the Spanish national average.
Key Factors:
Calvià is not a monolithic entity; it is a collection of diverse neighborhoods, each with its own distinct character and price point. This variety allows buyers to find the lifestyle that best suits their preferences.
| Neighborhood | Average Price/m² (2025) | Key Characteristics |
|---|---|---|
| Puerto Portals / Bendinat | €8,412 - €8,991 | Ultra-luxury, marina life, designer shopping, exclusive villas |
| Port Andratx | €8,991 | Glamorous, stunning natural harbour, high-end restaurants |
| Santa Ponsa | €5,000 - €6,000 | Family-friendly, two large sandy beaches, golf courses |
| Palmanova | €4,500 - €5,500 | Popular resort, three beaches, lively atmosphere |
| Calvià Vila / Es Capdellà | €3,500 - €4,500 | Traditional villages, rural charm, access to hiking trails |
The typical buyer in Calvià is a high-net-worth individual, often from Germany, the UK, or Scandinavia, seeking a second home or a lucrative investment property. There is also a growing contingent of buyers from the USA and the Middle East.
These buyers are discerning and demand the highest standards of quality, design, and location. The lifestyle in Calvià is one of relaxed sophistication, where days can be spent on the golf course, at a beach club, or exploring the stunning coastline, followed by evenings enjoying world-class dining and entertainment.
Understanding the nuances of property prices and market segments is key to navigating the Mallorcan real estate landscape. The market is highly segmented, with significant price variations based on location, property type, and quality.
The luxury segment in Mallorca is defined by properties with a price tag of €1 million and above. This sector has been the primary driver of the market's recent growth, with villas starting from €2.5 million and de-luxe apartments from €1 million being particularly sought after.
In prime areas of Calvià, such as Port Andratx and Bendinat, it is not uncommon for exceptional properties to exceed €10,000 per square meter, with forecasts suggesting this could rise to €15,000/m² or more in the coming years.
New construction carries a significant price premium in Mallorca, often costing up to 41% more than comparable existing properties. This is due to a combination of factors, including the high cost of land, rising construction costs, and the superior quality, modern design, and energy efficiency of new builds.
In a market where lifestyle is a key purchasing driver, premium features can have a dramatic impact on a property's value:
As the Mallorcan property market moves into 2025 and 2026, the consensus among experts is one of continued, albeit more moderate, growth. The explosive price increases of the post-pandemic years are expected to give way to a more sustainable and stable period of appreciation.
| Market Segment | 2025 Forecast | 2026 Forecast |
|---|---|---|
| Overall Market | +5-7% | +3-6% |
| Luxury Segment | +7-10% | +5-8% |
| Mid-Market | +3-5% | +2-4% |
The long-term outlook for the Mallorcan property market remains overwhelmingly positive. Forecasts suggest a steady annual price increase of 3.0% to 4.6% through to 2028, underscoring the island's enduring appeal as a secure, long-term investment.
Concerns of a property bubble are largely dismissed by experts, who point to the fundamental differences between the current market and the speculative boom of the mid-2000s. The high proportion of cash-rich, non-speculative international buyers, coupled with stricter lending criteria from banks, creates a much more stable and resilient market environment.
As of September 2025, the average mortgage rate in Spain stood at a competitive 2.66%. This relatively low rate is a result of the European Central Bank (ECB) implementing several rate cuts since June 2025, making financing more accessible and affordable.
The 12-month EURIBOR, the benchmark rate for most Spanish mortgages, is forecasted to stabilize around 2.08%, suggesting that favorable lending conditions are likely to continue into 2026.
While the lending environment is generally favorable, non-resident buyers should be aware that Spanish banks apply stricter conditions:
A significant policy change affecting foreign investors was the Spanish government's decision to end the real estate investment route for its Golden Visa program in April 2025. This program, which granted residency to non-EU nationals who invested €500,000 in property, was a popular option for many international buyers.
While its removal may have a marginal impact on the market, the majority of foreign buyers in Mallorca are EU citizens or are motivated by lifestyle rather than residency, so the overall effect is expected to be minimal.
The municipality of Calvià is actively investing in modernizing its infrastructure and enhancing its public services, with the aim of further improving the quality of life for residents and maintaining the area's appeal for high-end tourism.
The Calvià Town Hall has approved a record-breaking infrastructure investment of €43 million for its 2026 budget, which is part of a total consolidated budget of €152 million. This represents the largest infrastructure allocation in the municipality's history.
The Calvià Town Hall is revising its General Plan for Urban Planning (PGOU), which will define the municipality's development for the next 30 years. A key component of this plan is the declassification of over 1.2 million square meters of urban or developable land.
This signals a strategic shift away from urban expansion and towards the consolidation and modernization of existing urban centers. This focus on sustainable development will help to protect the area's natural beauty and ensure its long-term appeal.
Historically, property in the Balearic Islands has delivered a steady average capital appreciation of 5-6% per annum over the last decade, making it a reliable store of wealth and a solid long-term investment.
In addition to capital growth, the island's thriving tourism industry offers excellent potential for rental income. The rental market is highly strained, with strong demand for both short-term holiday lets and long-term residential leases.
In 2025, the average long-term rent in Palma reached €1,989 per month for a standard unit, representing a 7.4% year-on-year increase.
A moratorium on issuing new holiday rental (ETV) licenses is in place until at least 2026, in an effort to curb the proliferation of tourist apartments. Existing licenses carry significant value premium and are rarely available for new properties.
The allure of Calvià extends far beyond its beautiful properties and stunning landscapes. The municipality offers a vibrant and sophisticated lifestyle, with a rich calendar of cultural and sporting events.
The confidence in Calvià's luxury market is reflected in the arrival of several prestigious hotel brands. In 2025, the iconic Mar i Pins hotel was transformed into a 5-star establishment by Aethos, while Blasson Property Investments opened the highly anticipated Mandarin Oriental Punta Negra. These new additions not only enhance the area's prestige but also provide new world-class amenities for residents and visitors to enjoy.
Expert guidance for navigating Mallorca's most exclusive property market.
SCHEDULE CONSULTATIONFor property owners in Mallorca, the current market presents an excellent opportunity to achieve a high sale price. Here are some tips for maximizing your return:
While the property market in Mallorca is thriving, it is not without its challenges. The very factors that make the island so attractive to international buyers have created significant affordability issues for local residents, leading to social tensions and a shifting regulatory landscape.
The surge in property prices and rental rates has created an acute affordability crisis for many local residents. In 2024, the average rental rate rose by 13%, with a standard apartment in Palma now costing between €1,200 and €1,500 per month—a figure that is out of reach for many local salaries.
This has led to a rise in social problems, with some residents forced to live in precarious conditions. The Balearic government is attempting to address the housing crisis through regulatory measures and plans to build 1,200 social homes by 2026, backed by an investment of €228 million.
The Mallorca housing market, and in particular the exclusive enclave of Calvià, is set to continue its trajectory of stable and sustainable growth into 2025 and 2026. The market's resilience, driven by strong international demand and a limited supply of high-quality properties, makes it one of the most attractive and secure investment destinations in Europe.
While the explosive price growth of recent years may be moderating, the underlying fundamentals of the market remain exceptionally strong. For buyers, the current climate offers an opportunity to invest in a world-class lifestyle and a tangible asset that is likely to deliver solid long-term returns.
As Calvià continues to invest in its infrastructure and enhance its unique lifestyle offering, its status as a beacon of luxury in the Mediterranean is only set to grow. Whether you are seeking a sun-drenched holiday home, a lucrative investment, or a new permanent residence, the allure of Mallorca and the promise of Calvià are more compelling than ever.