Not even foreigners can stand the housing prices in the Balearic Islands

PalmaThe Balearic Islands have become such an expensive real estate market that even foreign buyers, who have traditionally had a higher purchasing power than residents, are beginning to reduce their operations. In fact, the data shows this. In 2025, foreigners paid an average of 548,662 euros per home, 80% more than the 304,120 euros disbursed by national buyers, according to data from the Balearic Islands Housing Observatory. This year, however, the situation has changed completely and it seems that foreigners no longer see the Balearic Islands as a great business opportunity.

So much so, that free-market home purchase transactions by foreigners fell by 15.4% year-on-year during the first half of 2026, according to data from the Notary Statistical Information Center (CIEN). The decline coincides with a new increase in prices: the square meter has become 9.3% more expensive in the Balearic Islands compared to the same period of the previous year, according to data from the registrars.

The drop in foreign sales in the Islands is more pronounced than that recorded in the country as a whole, where operations fell by 13%, to 62,327 between January and June. This is the most significant year-on-year decline since the first half of 2020. Despite this slowdown, the average price paid by foreign buyers nationwide increased by 9.4%, to 2,644 euros per square meter.

The Balearic data must also be read in a context of strong pressure on housing. The fact that foreign buyers paid 80% more than domestic ones last year shows the weight they have in the highest price segments. Now, however, the reduction in sales is occurring at the same time that prices continue to rise.

The trend is also repeated nationwide

In Spain as a whole, sales of free-market housing by foreigners fell by 13% during the first half of the year, to 62,327 operations. This is the most intense year-on-year drop since the first half of 2020. Despite the reduction in transactions, the average price paid by these buyers rose by 9.4%, to 2,644 euros per square meter.

Non-resident foreigners paid an average of 3,493 euros per square meter, 11.8% more than a year earlier, while foreign residents paid 2,102, 9.8% more. National buyers paid an average of 1,971 euros per square meter. The difference between non-residents and foreign residents thus reached a historical high of 1,391 euros per square meter.