The Balearic Islands recorded a 16.8% drop in property sales in May compared to the same month in 2025, the largest decline among all autonomous communities, according to data published this Tuesday by the INE.
The Balearic real estate market faces another setback. Property sales in the islands fell by 16.8% in May compared to the same month last year, the worst figure in all of Spain, according to the National Institute of Statistics (INE). In total, 56,462 transactions were recorded across the country, a 7.3% decrease from May 2025.
Balearics lead the declines
The Balearic drop doubles the national average and is only comparable to the declines in Cantabria (-28.6%) and Murcia (-19.1%). On the opposite side, Extremadura and Andalusia were the only communities that managed to increase their sales, with rises of 2.6% and 2.2%, respectively. The Balearic figure confirms the downward trend that has plagued the sector since the beginning of the year: property sales have recorded five consecutive months of declines, with drops of 5% in January, 0.5% in February, 2.2% in March, and 1.8% in April.
According to the INE, the national decline is explained by the behaviour of the second-hand housing, which fell by 7.6% year-on-year in May, down to 44,574 transactions. New housing also decreased by 6%, with 11,888 transactions, breaking the timid recovery it had shown in April.
Free and protected housing, on the decline
Of the total transactions in Spain, 93.6% corresponded to free housing (52,831) and 6.4% to protected housing (3,631). Both segments suffered year-on-year declines: 7.2% for free housing and 8.3% for protected housing. In the Balearics, the trend is similar, although the rising land costs and lack of supply exacerbate the situation.
“The rise in interest rates and economic uncertainty are slowing down purchases, especially among young people looking for their first home,” say sources from the Balearic real estate sector.
“In Mallorca, the average price remains above 3,000 euros per square metre, which drives many potential buyers out of the market,” they add.
Prospects for Mallorca
For buyers on the island, the drop in transactions does not translate into a decrease in prices. On the contrary, the scarcity of supply keeps values high, especially in Palma and the Serra de Tramuntana area. Experts warn that the downward trend in property sales could continue over the coming months if mortgage lending does not reactivate.
On a positive note, free housing sales in Spain rose by 5.8% month-on-month (April to May), and protected housing increased by 10.2%, indicating some short-term recovery. However, in the Balearics, the month-on-month figure does not manage to reverse the annual trend.
Those interested in purchasing a home in Mallorca should pay attention to public aid for young people and any VPO promotions that may arise in the coming months, such as those planned in the Balearic Government's Housing Plan 2026.
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