In July 2025, Palma’s real estate market once again showed substantial growth. The average price per square meter of housing in the capital of the Balearic Islands reached €4,951, marking the highest level ever recorded.
Compared to June of this year, prices increased by 0.9%. Over the past three months, growth totaled 5.5%, and compared to July 2024, prices rose by 18.8%. These rates significantly exceed the Spanish average, where the price per square meter in July stood at €2,471 with an annual increase of 14.7%.
Palma firmly maintains its status as one of the most expensive cities in the country to buy property. Here, the price per square meter is nearly twice the national average, highlighting the high demand and attractiveness of the local market for investors and buyers.
The city’s most expensive neighborhoods remain Son Vida, where a square meter costs €8,621, up 17.4% from a year ago. Next are Portixol – Molinar at €7,369 (+7.5%), Ciutat Antigua at €6,241 (+9%), Gènova – Bonanova – Sant Agustí at €6,203 (+10.1%), and Sta Catalina – Son Armadans – Marítim at €5,734 (+12.9%).
At the same time, the most affordable areas for buying property are Llevant – La Soledat, where the average price is €2,773 per square meter, but even here prices have increased by 21.8% over the year. In Rafal – Son Forteza and Son Oliva – Plaza Toros – Camp Redó, prices are €3,272 and €3,490 respectively, with annual growth exceeding 15%. In Las Avenidas, a square meter costs €3,784 (+14.6%), and in Establiments – Son Sardina — €3,887 (+10.3%).
The highest annual price increase was recorded in Son Ferriol – Sant Jordi, where property values rose by 35.5%. Interestingly, even in the most affordable neighborhoods, such as Llevant – La Soledat, prices are rising faster than the city average.
In July, price declines were observed in only three areas: Génova – Bonanova – Sant Agustí, Establiments – Son Sardina, and Llevant – La Soledat. However, overall, the market trend remains positive, and interest in Palma’s real estate is undiminished.
Experts note that such high figures are due to limited supply, strong demand from foreign buyers, and the city’s appeal for investment. Palma continues to remain one of the most sought-after locations in Spain’s housing market.
