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Palma de Mallorca, the vibrant capital of the Balearic Islands, has long been one of Spain’s most desirable property destinations. But in 2025, it is facing what many call an unprecedented supply crisis.
According to Idealista, Spain’s largest property portal, the number of homes for sale in Palma is at its lowest ever recorded. The Balearic Islands Association of Real Estate Agents warns that multiple estate agencies have already shut down due to having nothing left to sell—a scenario unimaginable just a few years ago.
Total listings in Palma (sale)
Idealista shows around 4,440 homes for sale in Palma de Mallorca as of Sept 2025.
Other references confirm a similar figure: 4,421 listings in Palma municipality.
Playa de Palma: ~362 homes for sale
Llevant – La Soledat: ~230 homes
“Cheap / lower-priced stock”: Limited listings start as low as €39,000, though these are rare.
Neighbourhood pricing variance: In the Casco Antiguo (Old Town), averages run €4,500–6,000/m².
From May 2024 to April 2025, Palma’s average property price jumped from €4,860 to €5,429/m², an 11.7% increase year-on-year.
Comparative data: In Dec 2024, the Balearic Islands’ average was €4,707/m².
Across Mallorca, ~18,541 homes are listed for sale.
Palma accounts for a substantial share, confirming its role as the island’s property hub.
Comparative scarcity: For a city of 400,000+ people, 4,400 active listings is very low—especially as much of it is high-end or less desirable stock.
Affordable market squeeze: While listings technically start from €39,000, affordable and middle-market homes are extremely limited.
Price growth confirms demand stress: Double-digit growth in €/m² within a mature market confirms scarcity-driven pressure.
Neighbourhood disparities: Even in more peripheral areas like Playa de Palma and Llevant, supply is modest.
Segment imbalance: Middle- and lower-tier properties are absorbed quickly; luxury units linger.
“No homes left” narrative: EuroWeekly’s headline “No homes left in Palma” exaggerates the picture. Thousands remain, but the downward trend is real and severe.
1. Demand remains strong
Spain’s housing transactions are robust, with CaixaBank warning that supply nationally can’t match demand. Mallorca reflects this imbalance.
2. Construction misses the mark
While permits are rising, too much product is aimed at luxury buyers, not locals. Analysts call it a mismatch between what’s being built and what’s needed.
3. Policy gridlock
The proposed “Obtención de Suelo” land-release framework could add controlled supply, some reserved for residents, but it is years from making an impact.
API president José Miguel Artieda says agencies that once had 40–60 listings now manage just 4–8. Some have shut down, merged, or pivoted into rentals. While “closure” sometimes means consolidation, the trend is clear: resale-only brokers are struggling.
Spain-wide shortage: Idealista flagged the largest drop in resale listings in its history earlier in 2025. Palma is at the sharpest end of this trend.
Island constraints: Unlike mainland cities, Palma can’t expand outward, tightening supply further.
Affordability gap: With prices above €5,000/m², locals are increasingly locked out, sparking political debate.
For Buyers
For Sellers
For Agents & Developers
Short-term
Medium to long-term
Yes—this is happening. Palma’s housing stock is at historic lows, prices are rising fast, and some agencies have already closed their doors. With demand strong, construction misaligned, and policy slow, Palma is now one of Europe’s most constrained and competitive property markets.
📧 elly@internationalpropertyalerts.com
🌐 www.internationalpropertyalerts.com
📱 WhatsApp: +44 7796 174253
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