The Balearics, foreigners' real estate paradise: They already buy four out of ten homes over €500,000

PalmaAlthough state statistics speak of a global decrease in sales by foreigners in recent months, in the Balearic Islands the reality is quite different: According to the latest data from the Ministry of Housing and Urban Agenda, in 2025 these citizens acquired four out of every ten properties over €500,000 sold. A proportion that doubles any figure from other autonomous communities.

The difference is especially significant when compared with other tourist territories. In the Canary Islands, only 9% of acquisitions made by foreigners exceed half a million euros, according to the same report from the Land Observatory. In Catalonia, the percentage is 13.15%; in Andalusia, 19.22%; and in the Community of Madrid, 24.4%. The Spanish average stands at 12.22%.

Regarding the profile of buyers, seven out of every ten transactions (70.34%) correspond to citizens of the European Union, while the remaining 29.66% are non-EU citizens. This is a different distribution than in Madrid or Catalonia, where buyers from outside the EU predominate.

This predominance of Europeans reflects the historical weight of markets such as German, Dutch, French, or Belgian, which for decades have considered the Islands a preferred destination for both acquiring a second residence and investing in housing.

The comparison with the Canary Islands is particularly significant. Despite sharing an economy closely linked to tourism, strong pressure on the residential market, and mobilizations to demand measures to facilitate access to housing, only 9% of sales exceeding 500,000 euros correspond to foreign buyers, compared to the 41.79% registered in the Balearic Islands.

Furthermore, the threshold of 500,000 euros no longer exclusively corresponds to the luxury market. The sustained increase in housing prices in recent years has meant that a growing portion of sales in the Islands exceed this amount, especially in coastal municipalities, tourist areas, and a large part of Palma. In this context, the fact that more than four out of every ten transactions in this segment are carried out by international buyers highlights the continued importance of foreign demand in the Balearic residential market.

The high purchasing power of a portion of this demand, along with the scarcity of available land, the limited housing supply, and strong residential pressure, is commonly pointed out by analysts as one of the factors contributing to maintaining price tension.