Imagine yourself for a moment at the edge of wild beaches and turquoise coves with the Mediterranean breeze... There's no doubt about it: the Spanish islands are the stuff of dreams. But is this dream attainable in 2025 for those wishing to buy a second home in the Balearic Islands?
Between Mallorca and Ibiza, the archipelago attracts a European clientele in search of serenity... but also of profitable investments.
But don't forget that the real estate market is constantly evolving. Between the scarcity of properties, local taxation and new regulations, it's important to take the plunge at the right time. So, second homes in the Balearic Islands: an opportunity to be seized or the need for caution?
Here's our full breakdown of the trends and our key tips for considering a purchase in this exceptional setting.
Spain's real estate market continues to trend upwards, despite inflation. Boosted by sustained international demand, prices are high, although prices vary from island to island.
On Majorca, the market is very active, especially around the coastal areas and the south-west. If you're looking to buy a villa, you'll be looking at between €5,000 and €12,000 per m².
Ibiza, even more exclusive, retains some of the highest property prices in Spain. Balearic real estate prices in 2025 will often exceed €15,000/m² for prestige properties. Supply is very limited, particularly for villas with sea views.
Menorca is more accessible, both in terms of price and its unspoilt atmosphere. The island attracts a clientele in search of calm and nature. Here, the pace is more leisurely, the landscapes wilder, and the real estate offer less saturated than in Majorca or Ibiza. The average budget for a property purchase here is between €3,500 and €6,000/m².
On Formentera, opportunities are rare but highly sought-after. The island attracts an exclusive clientele in search of tranquillity and authenticity. The price of a villa here reaches new heights, with properties often topping €18,000/m². As supply is extremely limited, every property that comes onto the market quickly attracts attention, particularly for second-home or discreet investment projects.
The turquoise sea, the white villages and the presence of the sun more than 300 days a year are all elements that make the Balearic Islands so charming. In 2025, buying a home on Mallorca (or any of the other islands) remains an excellent choice if you're hoping for an almost guaranteed return on your investment, while enjoying a more than pleasant lifestyle.
As you can imagine, rental investment in Spain is attractive: villas are generally snapped up very quickly in high season, with very competitive weekly rents.
Each island appeals to a different audience:
- Majorca offers a good balance between urban life and nature.
- Ibiza attracts lovers of luxury and entertainment.
- Menorca appeals to families and retirees in search of tranquillity.
- Formentera, more confidential, is aimed at investors looking for an exceptional property.
Add to all this an affordable tax system for non-residents, and accessible air links, and you've got a winning equation.
So, is buying a second home in the Balearic Islands in 2025 a good idea? As far as financing is concerned, conditions are still attractive, despite a slight rise in interest rates. Spanish banks remain open to foreign profiles, especially for well-structured projects with a solid capital contribution and guarantees.
On the other hand, the stock of available properties remains particularly low, especially for well-located villas. Prices remain high, particularly on Ibiza and in certain popular areas of Majorca.
In terms of infrastructure, several port, airport and residential projects are underway. These public investments reinforce the long-term value of the region. However, we need to be vigilant about new regulations:
- Limitations on tourist rentals
- Encouragement of sustainable construction
- Consideration of restrictions on non-residents.
Investing in Spanish real estate in 2025 is still relevant, but requires a detailed analysis of the local market. For a second home in the Balearic Islands, it's best to focus on quality, location... and support.
Buying a villa in the Balearics, or any other property in the archipelago, may seem idyllic... but beware of certain classic mistakes.
The first of these is rushing to buy on a whim without checking the property's conformity before signing.
Another point to watch out for: location. Some areas, while attractive on paper, may be exposed to noise pollution, difficult access or low rental values. Homebooker would like to remind you that the purchase budget must also include all ancillary costs (notary, taxes, maintenance and any necessary renovations).
Last but not least, second homes in the Balearic Islands are subject to constantly changing rules on short-term rentals. Some municipalities now impose specific restrictions or authorizations, depending on the type of property.
We therefore strongly recommend that you use the services of a trusted local agency, and that you consult a specialist lawyer. Good professional advice will help you avoid unpleasant surprises and secure your investment in the long term.
Buying a holiday home in the Balearic Islands is an exciting project, but one that requires method and forethought. Here's what you really need to think about:
- Plan a preliminary visit to assess the real environment of the property and avoid unpleasant surprises from a distance.
- Study the tax situation according to your status (resident or non-resident), as this has a direct impact on profitability and holding costs.
- Estimate the real costs of the transaction: beyond the purchase price, include taxes, notary fees, maintenance and annual charges in your budget.
- Choose the right purchase method: joint ownership, SCI, personal purchase... it all depends on your asset strategy and the type of property.
Second homes in the Balearic Islands continue to offer excellent prospects. In 2025, it's all about making the right choices: the right place, the right time, the right support.
We're here to help! We'll help you buy a villa or residence that's right for you. Give us a call and we'll give you the advice you need to make your project a reality.
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