Expats across the Balearics are celebrating as years of investment and redevelopment – particularly in Calvià – begin to pay off, with property prices hitting record highs across the islands. The once purely seasonal destination has matured into a thriving year-round community, and homeowners are seeing the results in the value of their properties.
According to the latest data from Idealista, the Balearic Islands remain Spain’s most expensive region to buy property. The average price of a second-hand home now exceeds €5,000 per square metre, marking a 12.3% annual increase as of August 2025. Though slightly below the national growth rate, it still underlines strong, consistent demand—particularly encouraging for the many expats who have made Mallorca, Ibiza, and Menorca their permanent home.
Calvià: the place to be
Over the past decade, millions of euros in public and private investment have transformed municipalities such as Calvià, improving infrastructure, upgrading resorts, and attracting high-end hospitality brands. The result is not just a stronger tourism sector but a clear ripple effect on property prices. Calvià, in particular, now ranks among the five most expensive municipalities in the Balearics, with an average of €6,925 per square metre.
Across the islands, 25 municipalities reached all-time highs for resale property prices this year. Topping the list is Sant Joan de Labritja in Ibiza (€8,959/m²), followed by Sant Josep de Sa Talaia (€7,367/m²), Sant Antoni de Portmany (€6,927/m²), and Ibiza Town (€6,879/m²). The figures reflect not just luxury-driven growth, but also a broader trend of steady appreciation across prime and mid-market areas alike.
The upward trajectory is further supported by national data from the Sociedad de Tasación (Appraisal Society). Its latest report, “Ten Trends and Challenges for the Housing Market for the Second Half of 2025,” shows property sales in Spain up 15% year-on-year, with mortgage approvals rising 18%. The growth is partly driven by European Central Bank interest rate cuts, which have made financing more accessible, and by sustained foreign demand – now accounting for 15% of all home purchases, with peaks above 30% in the Balearics, Malaga, and Valencia.
Historic high
The average price of new housing in Spain has also reached a historic high of €3,151 per square metre, with forecasts predicting an 8.7% rise over the year ahead.
For expats already living in the Balearics, this sustained growth offers reassurance that the decision to buy was a sound one. Many homeowners have seen the value of their properties increase substantially, while the region continues to attract fresh international interest.
Despite the rising costs, agents say the Balearics’ appeal shows no signs of slowing. The islands’ combination of Mediterranean lifestyle, international community, and strong rental demand makes them a rare market where lifestyle and investment align.
As Calvià’s transformation continues and infrastructure improves across Mallorca and Ibiza, long-term residents can take comfort in knowing they’re not just living in paradise – they’re watching their investment grow along with it.