Property Investment in Mallorca vs. Ibiza: 2025 Analysis

This comparative overview examines the residential property markets of Mallorca and Ibiza. Both markets exhibit strong positive price growth and healthy rental yields, with properties covering a diverse range of price points and extending into the super-luxury sector. Together, the two islands account for over 90% of the Balearic Islands' property market, which Idealista reports as Spain's autonomous community with the highest property prices.

Our data also shows that Ibiza commands a significant price premium over Mallorca in both sales and rentals.

Sales Price per Sqm (Current)

Based on data from the online property portal Idealista, the property prices for Mallorca and Ibiza in October 2025 are €5,002.85 per square meter and €7,306.59 per square meter, respectively. This shows Ibiza commands a significant premium of 46% over Mallorca.

Idealista reports an average price of €2,517 per square meter for Spain as a whole, meaning Mallorca and Ibiza command prices roughly two and three times the national average, respectively.

Historical Sales Prices Per Square Meter (2023-2025)

Using Idealista's historical data (source: Price evolution of housing for sale in Spain), property prices from the end of September 2023 to the end of September 2025 were as follows:

Calculated using the above table, between 2023 and 2025, Mallorca's average sale price per square meter rose by a compound annual growth rate (CAGR) of 11.2% (8.2% inflation-adjusted). Ibiza's CAGR over the same period was 7.6% (4.6% inflation-adjusted). According to Idealista, for the same period, the CAGR for Spain was 11.9% (8.9% inflation-adjusted).

Rental Price per Sqm

Based on aggregated rental data from Idealista, the average rental prices for Mallorca and Ibiza in October 2025 are €21.26 per square meter and €29.10 per square meter, respectively, with Ibiza commanding a rental premium of 36.9%.

Gross Rental Yields

Using our sales and rental data given above, gross rental yields are 5.10% in Mallorca and 4.78% in Ibiza.

Market Snapshot by Price Band - October 2025

To understand how the properties in these two markets are distributed across price points, we analysed live listing data from Kyero. The results are segmented by villas and houses (including townhouses and semi-detached homes) and by apartments, with each category divided into resale and new-build listings.

Distribution of Villa and House Listings by Price Band, Mallorca vs. Ibiza

Villas and Houses - 60% Premium in Ibiza

For the property group of villas and houses, the highest concentration of listings for Mallorca is within the €500,000-€1 million bracket. Ibiza's stock is noticeably more concentrated at significantly higher price points, with the largest share of listings in the €5-7.5 million range.

Based on our snapshot data, the average villa list price in Mallorca is €2.70 million, with an estimated median of €1.91 million. Ibiza commands a premium of 60%, with an average list price of €4.32 million and the median €3.40 million.

Percentage of Villas and Houses Listed Above Price Points

By looking at the percentages of listings priced above a range of increasing price points, we can determine how heavily weighted each market is toward luxury property.

No villas or houses are available in Ibiza for under 500K, compared to 6% in Mallorca. 74% in Mallorca are listed at €1 million or more, compared to 93% for Ibiza. 48% are priced from 2M in Mallorca and 76% in Ibiza. Looking at the luxury sector from €5M, Ibiza still has very significant concentrations from this price point, with 27%, in contrast to just 11% for Mallorca.

Distribution of Apartment Listings by Price Band, Mallorca vs. Ibiza

Our Kyero data has an average apartment listing price for Mallorca of €1.02 million and an estimated median of €0.75 million. The average apartment listing price for Ibiza is €1.17 million, a premium of 14.70%, and an estimated median of €0.81 million.

Percentage of Apartments Listed Above Price Points

Looking at apartments, Ibiza has a higher share of listings above every price point, though the differences are far less significant than in the villas and houses segment.

Ibiza's overall price premium is primarily driven by its high-value villa and house market rather than apartments. This is also verified by our earlier average price calculations - Ibiza commands a premium of 60% for villas and houses, compared with only 15% for apartments.

Resales vs. New Builds

As you would expect in mature markets, our Kyero data shows across both property types, supply is dominated by resales, with no significant difference between the two islands.

Split Between Property Types

Based on Kyero listings, 66% of the total listings in Mallorca are villas and houses, and 34% are apartments. The split is similar in Ibiza, though with a slightly higher proportion of apartments at 40%.

Villas and houses dominate the supply on both islands, and their average list price is 60% higher in Ibiza, as noted earlier in this article. It follows that the 46% premium in average property price per square meter of Ibiza over Mallorca is largely explained by its more expensive villa stock.

Intra-Island Price Variation

Using data from Idealista on 24th October 2025, we examined how sales and rental prices per square metre vary across the municipalities of Mallorca and Ibiza.

Mallorca: More price variation for both sales and rentals

Driven by international investment, the most expensive south-western municipalities of Andratx (€7,545/m²) and Calvià (€6,999/m²) command premiums in sales prices of over 300% compared to rural municipalities such as Lloseta (€2,354/m²) and Muro in the cheaper northern region.

Rental prices in Mallorca follow a similar pattern and show their greatest variation when comparing the south-west region to the rural interior. Andratx (€28.3/m²) and Calvià (€27.8/m²) command well over double the rates of inland municipalities such as Lloseta (€11.3/m²) and Porreres (€12.4/m²)

Ibiza: More compact, lower variation

Ibiza covers only 572 km² compared to Mallorca's 3,640 km², and no municipality on the island lies more than about 15 km from the coast. Ibiza lacks the remote inland spaces found in Mallorca, with genuinely rural areas offering markedly cheaper properties for sale and rent.

Both sales and rental markets in Ibiza show much lower variation between the most and least expensive municipalities. Looking at properties for sale, Sant Joan (€8,814/m²) is priced 29% above the cheapest, Eivissa (€6,829/m²). In terms of rental prices, the maximum spread is between Sant Joan (€33.13/m²) and Sant Antoni (€25.38/m²), a premium of 31%.

Foreign Buyers in the Balearics

There is no reliable data showing the share of property transactions by foreign investors broken down separately for Ibiza and Mallorca. However, data is available at the regional level. According to Idealista's report 'Where Foreigners Are Buying Property in Spain in 2025', published 16 September 2025, foreign demand accounts for 31.5% of all property transactions in the Balearic Islands.

Mallorca and Ibiza - Market Share

Using combined listing volumes on Idealista and Kyero as of 28 October 2025, Mallorca accounts for 80% of homes for sale in the Balearics. 11% of listings are in Ibiza, meaning the Mallorca market is about seven times larger.

Methodology

• Average sales prices per square meter for Mallorca and Ibiza were calculated using Idealista's reported municipal price data, weighted by each municipality's relative search volume on Idealista as of 24 October 2025. This approach was necessary because Idealista does not publish price data at the island level.
• Average rental prices per square meter were calculated using the €/m² figures shown in the rental search results for each municipality on the Idealista portal, weighted by each municipality's relative search volume on Idealista as of 24 October 2025.
• Our snapshot data was captured from Kyero on 24 October 2025 using island-wide searches, conducted separately for villas and houses versus apartments, across the reported price bands.
• Our data on the split between resale and new-build properties was obtained using filters on searches on Idealista on 15 October 2025.
• Inflation adjustment was calculated using the Consumer Price Index (CPI) annual rate of 3.0% for September 2025, as published by INE on 15 October 2025.

Author: David Delhanty is the founder of Charlesdel.com, an international property sales platform specialising in Mallorca, Ibiza, Phuket, and Koh Samui.