For many people, owning a home in Mallorca is a dream come true. But buying a property on this popular Balearic island is a major decision. One of the most important questions when buying a home is which area is the best.
There is no single, perfect area for everyone, but there are areas that perfectly suit your needs. This could be a prestigious primary residence, a high-yield investment, or a safe haven for your family.
To help you gain a useful overview of the Mallorcan real estate market, this article provides information on the best areas in Mallorca for buying property.
Key findings at a glance
- Your goals determine the location: Define your goal before you start your search.
- A stable market with rising prices: The real estate market in Mallorca remains robust. The average sales price in the Balearic Islands was €396,573 per apartment in the second quarter of 2025, while the Spanish average stands at just €226,226.
- The southwest remains the top destination for luxury: Regions such as Port d’Andratx, Bendinat, and Son Vida are synonymous with exclusivity, security, and first-class infrastructure.
- A golden investment opportunity: Due to a moratorium, no new licenses for vacation rentals are being issued. Properties with existing licenses are extremely valuable and in high demand.
- A local partner is key: The buying process has its pitfalls. An experienced local partner who handles the formalities for you makes the process worry-free.
What to Look for When Buying a Property in Mallorca
First, ask yourself what the purpose of your property should be: a primary residence, a vacation home, or an investment?
The answer will provide you with the right guidelines for your entire search. A primary residence requires infrastructure that functions year-round. Think of international schools, good doctors, and a vibrant community—even in winter.
For a vacation home, other factors matter, such as quick access to the airport, low maintenance, and proximity to beaches, marinas, or golf courses.
Evaluate a pure investment with a clear head: What is the rental potential, what return is realistic, and how will the value develop in the future?
At Herzog Estate Services, we advise you on the best locations. Because we not only sell but also manage, renovate, and build, we understand the long-term consequences of every decision. This is how we ensure that your dream is built on a solid foundation.
A Look at the Market
We hear a lot about uncertain times, but the real estate market in Mallorca seems unfazed by them.
In the third quarter of 2025, the average price per square meter in the Balearic Islands reached €3,518, representing a year-over-year increase of 14.6 percent. This is significantly above the Spanish average. In Palma de Mallorca, the figure stands at €3,349 per square meter. However, prime locations in the southwest of the island command even higher prices.
The most expensive area in Mallorca
Location, location, location: It’s an old adage, but it’s true. Proximity to the capital, Palma de Mallorca, to exclusive marinas like Puerto Portals, and to renowned golf courses is driving up prices in the southwest of the island.
The “golden triangle” between Port d’Andratx, Bendinat, and Santa Ponsa is the undisputed epicenter of luxury on the island. Port d’Andratx, with its natural harbor lined with chic restaurants and designer boutiques, is the ideal meeting place for a discerning, international crowd.
Bendinat and Portals Nous epitomize ultimate exclusivity, with world-class golf courses and the famous Puerto Portals marina right on their doorstep. All these locations offer the highest level of security, privacy, and infrastructure that leaves nothing to be desired.
The selling point: ocean view
Properties with ocean views are particularly popular in Mallorca. The view of the blue Mediterranean is a balm for the soul and, incidentally, a real value driver—a factor further reinforced by the fact that only 4% of all properties offer a prime ocean view.
In practice, we recommend assessing the potential for a sea view even in properties that do not offer one at first glance. Sometimes, a well-planned renovation—which we can design and execute for you—can create new value.
Son Vida: The Beverly Hills of Mallorca
Perched above the rooftops of Palma lies a world of its own: Son Vida. This exclusive residential neighborhood offers breathtaking panoramic views of the city and the bay that will take your breath away.
With 24-hour security, three world-class golf courses, and some of the island’s most spectacular villas, Son Vida is synonymous with discreet luxury—yet just minutes away from the vibrant life of the capital.
Those who own property here need partners who are on the same level. Herzog Estate Services offers precisely the discretion, reliability, and comprehensive service that owners in these locations expect.
Popular areas for investors and second homes
For many, a property in Mallorca is both a personal dream destination and a smart investment. For the investment to pay off, the location has to be right.
Locations with high tourist demand are a safe investment. Santa Ponsa, Palmanova, the Bay of Alcúdia in the north, or the picturesque Port de Sóller in the west are such hotspots. They offer the perfect mix of dream beaches, dining, and recreational activities. High occupancy rates are almost guaranteed here.
The Vacation Rental License
It is important to note the legal situation here, an issue that causes many people to stumble. What matters for you is the vacation rental license, or ETV for short. Starting in 2025, property owners will once again be able to apply for tourist rental licenses under certain conditions, after the government had suspended the issuance of new licenses in February 2022.
The new licenses are temporary and limited in number. This is part of the effort to curb overtourism. Existing licenses can be transferred when the property is sold. Such properties are currently particularly valuable and often sell for higher prices. However, anyone who rents out a property without a valid license risks heavy fines.
At Herzog Estate Services, we act as a guide for our clients through the competitive real estate market. We find rare properties with the coveted licenses for you and, upon request, also handle the entire rental process.
With marketing, guest services, and the handling of all formalities, we offer you a comprehensive package that makes your investment more profitable.
Palma – A Capital City with Charm and Investment Potential
Palma remains the heart of the island. A compact city that buzzes with life 365 days a year, offering a unique blend of history, culture, and urban lifestyle.
Living in the alleys of the Old Town is like traveling back in time. Surrounded by landmarks such as La Seu Cathedral, you’ll find meticulously restored city palaces and historic apartments that blend old-world charm with state-of-the-art luxury.
Santa Catalina: The trendy neighborhood for connoisseurs
Santa Catalina is the neighborhood of the moment. Life buzzes around the lively Mercat de Santa Catalina. Countless restaurants, trendy bars, and small boutiques attract a creative, international crowd that loves the laid-back, bohemian atmosphere.
Portixol & El Molinar: Beach life with easy access to the city
This former fishing village has undergone an impressive transformation and is now one of the most sought-after destinations on the coast. Modern apartments with ocean views, a promenade perfect for strolling, and a laid-back beach club atmosphere define the area—all just a stone’s throw from the city center.
Family-friendly neighborhoods and relaxed living in Mallorca
When children are involved, priorities shift. Suddenly, it’s no longer just about the ocean view or the nearest tapas bar. Now what matters most is safety, good schools, and the feeling of having found a home.
Areas like Santa Ponsa, Calvià, and Bendinat are particularly popular with families. They stand out for their safe environment and strong international community. They also offer excellent amenities, including parks, sports clubs, and kid-friendly beaches.
International Schools
Oft bestimmt die Wahl der Schule die Immobiliensuche, nicht umgekehrt. Einer der Hauptgründe für die Beliebtheit des Südwestens ist die hohe Dichte an erstklassigen internationalen Schulen. Renommierte Namen wie die Agora Portals International School, das King Richard III College oder das Baleares International College sind hier zu Hause.
Frequently Asked Questions (FAQ)
What additional costs are involved in buying a property in Mallorca?
When buying real estate in Mallorca, you should expect additional costs of approximately 10% to 15% of the purchase price. For existing properties, real estate transfer tax (8%–13%) applies, while for new construction, value-added tax (10%) and stamp duty (1.5%) are levied. In both cases, notary and land registry fees (1%–1.5%) are also incurred, as well as real estate agent commissions, if applicable.
Do I need a Spanish tax identification number (NIE) to make the purchase?
Yes, the NIE (Foreigners’ Identification Number) is mandatory for all financial and legal transactions in Spain, including the purchase of real estate. We recommend applying for it well in advance, as the processing can take some time.
Can non-EU citizens purchase property in Mallorca?
Yes, non-EU citizens can generally purchase real estate in Mallorca without major restrictions. An exception is rural land, for which a military permit may be required under certain circumstances.
Find the best area in Mallorca with Herzog Estate Services
Ultimately, Mallorca has the perfect place for every dream. Glamour in the southwest, city life in Palma, or family bliss in the countryside—Herzog Estate Services advises you and finds properties that match your vision.
We advise you on homes and the pros and cons of different areas in Mallorca. Our property management service gives you the peace of mind that your home is in the best hands, even when you’re not on the island.
Take advantage of our many years of experience and expertise to make your dream of the perfect home in the best area of Mallorca a reality.
Our Services for Buyers
We combine market analysis, comprehensive service, and personalized support—ensuring a structured and secure real estate purchase in Mallorca.
- Real Estate Analysis
- Pickup for Viewing
- Accompaniment During Viewing
- Organization of All Documents
- Referral to a Lawyer
- Scheduling and Accompaniment for Notary Appointment
- Accompaniment During Closing
