Mallorca: Property search on the popular Spanish sunshine island

INTERVIEW WITH FLORIAN WAETZOLDT, LICENSE PARTNER AT VON POLL REAL ESTATE MALLORCA - SANTA MARIA.

Mallorca is – as the origin of its name ‘Insula Maior’ suggests – the largest island of the Balearics. It impresses with its variety of landscapes – from rugged cliffs, large forest areas to picturesque bays, charming fishing villages and fragrant almond and apricot groves. The island is also rich in culture, history, tradition and culinary delights. With its location in the Mediterranean and more than 300 days of sunshine a year, Mallorca is also considered a sunshine island and is accordingly popular – both as a holiday destination and a place to live. But how exactly does buying a property on Mallorca work? And are there certain requirements that international buyers need to be aware of? Florian Waetzoldt, licence partner at VON POLL REAL ESTATE Mallorca – Santa Maria, has been successfully active on the island for many years and accompanies prospective buyers on their way to their own home.

Mr. Waetzoldt, due to the geopolitical and economic situation in recent years property prices have fallen in many places. How is the situation in Mallorca?

FLORIAN WAETZOLDT

The price development on the Mallorcan property market shows a clear upward trend. In fact, there are hardly any regions on the island where property prices have fallen significantly. In 2024, the Balearic Island recorded an average increase of 9.7 per cent. In the luxury segment, the average price per square metre reached the 10,000-euro mark in 2024, which corresponds to an increase of as much as 13 per cent compared to the previous year. This development is due to the continuing high demand, in which international buyer groups also play a significant role.

You just mentioned the international clientele: What exactly is the proportion of international buyers and from which countries do they come?

FLORIAN WAETZOLDT

In 2024, international buyers accounted for around 32 per cent of all property purchases in Mallorca. Interested parties from Germany represent the largest group among international buyers – they account for an above-average share of 50 to 60 per cent. In addition to Germany, there are also many buyers from the United Kingdom, Scandinavia, France and Switzerland who are looking for a property on the Balearic Island.

What criteria do international buyers pay particular attention to? Are there any preferences here?

FLORIAN WAETZOLDT

Location is still the top priority for most international buyers. Aspects such as sea view, proximity to the beach as well as to Palma and popular regions such as Port Santa Ponsa or Santanyí play a decisive role. We often find that people prefer to save on living space in favour of location. So, location is still the be-all and end-all. This is followed by infrastructure. Buyers also attach great importance to the quick accessibility of shopping facilities and restaurants as well as the availability of international schools and good medical care. The topic of energy efficiency has also become more important in recent years – prospective buyers are now paying more attention to energy efficiency values when looking for a property. In terms of size and layout, properties with three to four bedrooms are particularly popular, as these are ideal for families or additional guests. The outdoor area is also essential – terrace, garden and pool are often more important than the living space itself.

In which regions of Mallorca are international buyers particularly active? Which areas are in demand?

FLORIAN WAETZOLDT

The preferences of international buyers are very different and depend heavily on individual needs. For buyers who prefer urban and central living, Palma de Mallorca itself and the south-west of the island with places such as Portals Nous or Palmanova are particularly attractive. These regions are characterised by an excellent infrastructure, numerous restaurants and shopping facilities as well as leisure activities. On the other hand, there is a group of buyers who are looking for quieter, more rural locations to escape the hustle and bustle. The south-east, the centre of the island and the north-west of Mallorca are particularly popular here, where nature, tranquillity and a relaxed living environment are paramount. Both groups of buyers are well represented on the island, which emphasises the diversity and attractiveness of Mallorca.

In your experience, do international clients buy property primarily for their own use or as an investment?

FLORIAN WAETZOLDT

The clear majority of international buyers on Mallorca purchase properties for their own use, whereby the use of the property as a second home clearly dominates. Many potential buyers are looking for a holiday home on the island or a retreat for leisure or retirement. Pure investment purchases are actually less common and are increasingly found in Palma city or in the luxury segment. There, investors are specifically looking for properties with good rental potential and high potential for value appreciation.

If a property has been purchased as an investment – will this holiday property be let on a short-term or long-term basis?

FLORIAN WAETZOLDT

In Mallorca, it is common for investors to rent out holiday properties to holidaymakers mainly on a short-term basis, for example on a daily or weekly basis. Due to the strong tourist demand, such short-term lettings in popular regions often achieve higher returns than long-term lettings. However, there are strict legal requirements and often only limited holiday rental licences, which heavily regulates the market. We therefore recommend that our clients check carefully whether the property has a valid holiday rental licence before buying. For investors looking for a lower-risk and legally secure alternative, long-term letting to local tenants or expats can be attractive as it guarantees a stable income and requires significantly less time and administration.

What do prospective international buyers in particular need to consider when buying a property in Mallorca? Are there any special requirements?

FLORIAN WAETZOLDT

In general, there are no special restrictions for international buyers in Mallorca. EU citizens in particular can purchase a property without any problems. Nevertheless, there are a few important points to bear in mind. A careful legal examination of the property is essential. This includes checking that the property is properly registered in the land register, that all necessary building permits have been obtained and that there are no encumbrances or debts. In addition, international buyers need a Spanish identification number and ideally a Spanish bank account in order to complete the purchase process efficiently. The associated formalities should be tackled at an early stage. For those looking to holiday let, it is also important to check the availability and legality of a holiday rental licence.

What are the most common mistakes that international buyers make when buying a property in Mallorca?

FLORIAN WAETZOLDT

As already mentioned, a legal check is essential. Many prospective buyers sign contracts in advance or make down payments without an expert having first thoroughly checked the property and the associated documents. The same applies to letting. If there is no holiday rental licence, these plans cannot be implemented. When purchasing a finca, particular attention should also be paid to the habitation certificate. Many properties are located outside and may only have limited utilisation possibilities, which can quickly lead to problems. At VON POLL REAL ESTATE Mallorca, we know the processes and regulations on the Mallorcan property market in detail and can therefore provide our clients with the best possible support when buying their property on the island.

How exactly do prospective buyers benefit from your services? Are there additional services specifically for international buyers?

FLORIAN WAETZOLDT

Our team has more than two decades of industry experience in some cases and our large established network of service providers of all kinds, enabling us to provide our clients with professional and comprehensive support. This begins with the initial contact and even goes beyond the notary appointment. Experience has shown that even after the final signature, questions still arise, and we are happy to provide further advice. Our multilingual property experts are very familiar with looking after an international clientele, as well as with their needs and concerns, and they know the peculiarities of the Mallorcan property market down to the micro-locations. Interested parties can therefore expect a comprehensive range of services and property brokerage at the highest level.

Dear Mr. Waetzoldt, thank you very much for the interesting conversation.

Further information about the team around Florian Waetzoldt from VON POLL REAL ESTATE Mallorca - Santa Maria as well as the current real estate offer on site, contact details and much more can be found at https://www.von-poll.com/en/real-estate-agent/mallorca-santa-maria