The Balearic Islands, an archipelago in the Mediterranean Sea, are renowned for their natural beauty, idyllic beaches and a climate serving year-round sunshine. Comprising Mallorca, Menorca, Ibiza and Formentera, this group of islands has become a sought-after destination for both tourists and residents alike.
It’s no surprise that the real estate market in this region is vibrant and appealing, offering unique opportunities for those looking to sell a property. However, there are several factors to consider to ensure you achieve the best possible price when selling a house on the Balearic Islands.
- Steps to take before selling a house on the Balearic Islands
- How to know the value of your house?
- How is the real estate market on the Balearic Islands?
- Estimated selling time on the Balearic Islands
- The price per square metre on the Balearic Islands
- Potential buyers on the Balearic Islands
- Documents and taxes required to sell a house
- How to choose the right real estate agency?
Steps to take before selling a house on the Balearic Islands
Before putting your property on the market on the Balearic Islands, it's essential to be well prepared. The first step is to conduct a thorough evaluation to determine its true value in the current market. This will guide any improvements you may need to make. Remember, potential buyers will be viewing your property, so it’s crucial to make a lasting impression.
Alongside the evaluation, it’s important to gather all the necessary documentation for the sale. Additionally, having a professional property appraisal can help you set a competitive price in a market characterised by high demand.
How to know the value of your house?
Calculating the value of your property is a crucial step before putting it on the market. Several factors influence a property’s value, with location being one of the most important. On the Balearic Islands, Palma and proximity to the beaches are highly valued, while inland towns typically have lower prices.
However, proximity to amenities and pleasant surroundings can also increase the property’s value. Additionally, the condition of the home, its size, layout and specific features play a fundamental role in the overall valuation.
For an accurate appraisal, idealista provides a helpful tool for property valuation on the Balearic Islands. This system offers an estimate based on real market data, considering factors such as location and property characteristics.
How is the real estate market on the Balearic Islands?
The real estate market on the Balearic Islands is known for its high demand, both domestically and internationally, and its ongoing appeal. This makes it essential to stay informed about property trends in the region.
As of January 2025, prices are expected to continue rising. Over the past twelve months, the average price per square metre has increased by 14%, one of the highest figures in Spain. Although the increase has been more moderate in recent months, with a rise of 1.4% in the last quarter and 0.5% in the last month, these figures still reflect the steady demand and align with the broader national trend.
Estimated selling time on the Balearic Islands
The time it takes to sell a house on the Balearic Islands can vary widely based on factors such as location, price and market conditions at the time.
According to an idealista report, more than a third of homes on the Balearic Islands take between three months and a year to sell (35.85%). A significant 21.92% of properties are sold within one to three months of being listed. Meanwhile, 27.31% of homes are sold in less than three months.
The price per square metre on the Balearic Islands
The price per square metre on the Balearic Islands is a key indicator for those looking to sell a property, offering a clear reference point for market valuation. As of January 2025, the average price stands at €4,729, making it by far the most expensive autonomous community in Spain in this regard.
Within the region, prices are mainly driven by the cities and proximity to beaches and tourist hotspots. The most expensive areas include Formentera, due to its limited space, the Mallorcan coast in towns like Calvià and Andratx, which are popular with tourists and close to Palma, and the towns of Ibiza, where prices approach €7,000 per square metre.
Meanwhile, Palma sees an average price of €4,523 per square metre. Menorca's prices remain slightly below the Balearic average, while the most affordable areas are located inland on Mallorca, in towns such as Artà, Lloseta, Felanitx or Sa Pobla, with prices as low as €1,780 per square metre.
Potential buyers on the Balearic Islands
The property market on the Balearic Islands appeals to a diverse range of buyers, each with distinct motivations and needs. With its stunning landscapes, ideal climate and vibrant cultural offerings, the islands are a magnet for those seeking a unique lifestyle.
- Foreign investors: Attracted by the potential for appreciation and the holiday rental market, many international investors see the Balearic Islands as a lucrative opportunity.
- European retirees: Many are seeking a peaceful and sunny location to enjoy their retirement, capitalising on the islands' climate and quality of life. On Mallorca, the German community is particularly interested in this opportunity.
- Local families: They wish to settle in an environment with good educational and health infrastructure. They are looking for housing in the main cities or inland towns near Palma.
- Tourism professionals: Interested in properties that can be converted into tourist accommodation or second homes.
- Luxury lovers: Looking for exclusive properties with sea views and access to premium services, especially on Ibiza and Mallorca.
Documents and taxes required to sell a house
Selling a property on the Balearic Islands requires careful attention to documentation and taxes. Essential documents include the title deed, energy certificate and any relevant building permits. It's also important to ensure property-related taxes, such as the IBI (Property Tax) and any local council fees, are up to date.
Regarding taxes on the sale, it's crucial to be aware of the IRPF (personal income tax) applied to any capital gains from the sale. Additionally, the Tax on the Increase in the Value of Urban Land (municipal capital gains tax) is another consideration. For detailed information, it's advisable to consult specific taxes and expenses of selling a home.
Given that 20% of the Balearic Islands' population is foreign, you may not necessarily have to communicate in Spanish, as the international market is significant. Additionally, legal documents may be requested in Catalan, if needed.
How to choose the right real estate agency?
Choosing the right real estate agency not only influences the sale price but also impacts the speed and efficiency of the entire process. A reputable agency will offer expert advice, access to a wide network of potential buyers, strong negotiation skills, and if needed, interpreters for translations.
Given the high demand on the Balearic Islands, the real estate market is flooded with agencies, making it challenging to select the best one. To assist you, idealista offers a tool that helps you find the most suitable estate agents in your area. This tool allows you to locate agencies that are well-positioned to help you sell your property efficiently.
Living in Mallorca: pros and cons, best areas and cost of living
Many dream about living on Mallorca for its superb climate, dreamlike landscapes and a great quality of life. However, making the decision to move to this Balearic island involves considering various aspects. In this article, we will explore the pros and cons of life on Mallorca, the best areas to settle and the cost of living associated with this charming destination, which offers a wide variety of settings.
Living in Ibiza: real cost of living and tips on moving
Set in the crystal-clear waters of the Mediterranean, Ibiza is much more than just a party island—it’s a place with breathtaking beaches, charismatic towns, and a relaxed way of life that appeals to a diverse international community. While Ibiza’s reputation for nightlife and summer festivities is world-famous, its quality of life, rich culture, and natural surroundings make it a tempting choice for those seeking a permanent change of scene.
Living in Formentera: work, cost of living and where to live
Formentera is a destination with dream beaches, tranquility and a life away from the hustle and bustle of big cities. However, beyond its idyllic landscapes, living in Formentera involves a series of practical considerations that are fundamental when deciding to move to this Balearic island. For those looking for a change of scenery or wanting to enjoy island life, it is important to understand Formentera's work dynamics, marked by seasonality and tourism.