The Balearic Islands have once again affirmed their position as the priciest province in Spain for purchasing residential property, with average prices for second-hand homes consistently exceeding the €5,000 per square metre mark.
According to data for August 2025, the archipelago remains highly coveted by both domestic and international buyers, driving the average cost of properties to unprecedented levels. The islands recorded an impressive 12.3% annual price increase, slightly below the national average but reflecting a relentless surge in demand that continues to push local real estate records.
Record Prices in Palma and Across the Archipelago
The capital city, Palma de Mallorca, has been a significant driver of this growth, experiencing a substantial 17.2% annual increase. This spike has pushed the average price for a second-hand home in Palma to €5,006/m², firmly placing it among the most expensive cities in the country.
Overall, the high demand has resulted in record prices being reached in 25 municipalities across Mallorca, Ibiza, and Menorca. However, the most exclusive markets are found primarily on the island of Ibiza.
Ibiza Dominates the Top Tier
The most expensive municipality in the entire province is Sant Joan de Labritja in Ibiza, where the average price per square metre now stands at a staggering €8,959. This area, along with others on the island, constitutes the pinnacle of Spanish luxury real estate.
The top five most expensive locations are:
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Sant Joan de Labritja (€8,959/m² | +13.0% annual change)
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Sant Josep de Sa Talaia (€7,367/m² | +6.4% annual change)
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Sant Antoni de Portmany (€6,927/m² | +19.6% annual change)
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Calvià (Mallorca) (€6,925/m² | +8.7% annual change)
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Ibiza Town (€6,879/m² | +3.0% annual change)
Surge in Dynamic Growth Areas
While the established hotspots maintain their high values, several municipalities are experiencing explosive price appreciation. Colonia de Sant Pere saw the most dramatic annual rise, with prices skyrocketing by 37.5%. Other areas showing dynamic market growth include Felanitx (+30.2%), Inca (+26.4%), and Muro (+23.1%).
Noteworthy growth was also recorded in Sant Antoni de Portmany, which experienced the sharpest increase among the top five most expensive locales at 19.6%.
For foreign investors and expatriates, these figures underscore the premium nature and dynamic market conditions of the Balearic Islands. With prices climbing rapidly across Mallorca, Ibiza, and Menorca, the region continues to offer a compelling mix of luxury living, Mediterranean lifestyle, and solid, high-yield investment potential. Prospective buyers should be prepared for a competitive market environment in Spain's most desirable island province.