Foreigners now own nearly one in two properties in some of the popular island's most desirable areas, with average house prices soaring over the last decade.

15:02, Fri, Jan 2, 2026 Updated: 15:02, Fri, Jan 2, 2026

The city of Palma de Mallorca with the cathedral.

Majorca has increasingly become a magnet for expats including Brits (Image: Getty)

Tens of thousands of people are hoping to buy new homes in Majorca this year despite sky-high prices and "no land" being left for construction. Jose Miguel Artieda, president of the API association of estate agents, said around 55,000 people are expected to flood the island's housing market in the coming months - an estimate based on recent years, population growth and average family size. The Balearic Islands as a whole reached a population of 1,249,844 last year in a spike largely attributed to a growing number of expats, with 28.6% of the total resident population born outside of Spain.

Mr Artieda said the rapid demand for housing on the archipelago has been accompanied by "eleven years of incredible price increases" and signals an "intensity [that] is not sustainable ... in terms of housing development capacity or household borrowing capacity, as salaries are increasing at a much slower rate than house prices". Daniel Arenas, of the ABINI association, also told the Majorca Daily Bulletin (MDB) that price rises were linked to there being "no land left for construction", increasing market competition and developers getting tied in permit knots as they try to knock down or renovate existing structures.

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"Prices will continue to rise so long as there is no more housing supply on the market," Mr Arenas added. "The major underlying problem in the Balearics is the lack of supply - scarcity of available land, slow licensing procedures and insufficient development of affordable housing.

"With the measures being implemented by the Balearic Government, improvements are expected to begin to be seen, especially with the release of new land and a gradual increase in the supply of affordable housing."

Officials have been forced into taking action to ease pressure on the sector following months of passionate demonstrations that echoed global frustrations with overtourism - with residents also calling for more protections on the local economy and infrastructure amid the tide of new arrivals.

Data released by the Balearic Ministry of Housing last month showed that nearly one in two properties in some of Majorca's most popular areas are now owned by non-Spaniards, with Andratx - a pretty municipality on the west of the island - packed with 45.19% foreign homeowners.

Economist Pau Monserrat also told the MDB that "around a third of the adult population" in Majorca are looking to secure housing on the island, making it "the most stressed territory in the country".

He concurred that property prices would likely stay high - with overall prices in Spain spiking by 18% in the year to last October - potentially disadvantaging less affluent locals unable to compete with wealthy foreigners.

In the second quarter of last year, average property prices in the Balearics reached around £2,960 per square metre, up 13% on the previous year and 22% on the last two years. In the decade since 2015, meanwhile, average costs have climbed by more than 80%.