Best Areas to Buy Property in Mallorca: Investment Guide 2026

Mallorca is not one market — it is dozens. A seafront flat in Palma, a stone townhouse in Soller, and a modern villa in Calvià offer entirely different lifestyles, rental prospects, and price trajectories. This guide breaks down the best areas for property investment in 2026, with real price data, rental yields, and the practicalities that estate agents rarely mention.

Understanding the Mallorca Property Market in 2026

Before diving into specific areas, a few island-wide trends are worth noting:

• Prices continue to rise, though more moderately than the 8–12% annual increases seen in 2022–2024. The average price per square metre across Mallorca reached approximately €4,200/m² in late 2025, with significant variation by area.
• Supply remains constrained. Mallorca’s building moratoriums, protected natural areas, and limited available land mean new construction is severely restricted in many desirable locations. This structural undersupply supports long-term price growth.
• Rental regulations are tightening. Tourist rental licences (ETV) are increasingly difficult to obtain in many municipalities, and the Balearic Government has signalled further restrictions. This matters enormously for investment buyers — more on this below.
• Post-Brexit, British buyers remain active. Despite the additional paperwork, the UK remains one of the top three nationalities purchasing property in Mallorca, alongside Germans and Scandinavians.

Calvià (Santa Ponsa, Palmanova, Magaluf, Portals Nous)

The Area

The municipality of Calvià stretches along the south-west coast and contains some of Mallorca’s most popular resort areas. It is the wealthiest municipality in the Balearics and has invested heavily in infrastructure, beaches, and public spaces. Within Calvià, the micro-markets vary enormously:

• Santa Ponsa: A large, established resort popular with British, German, and Scandinavian buyers. Good beaches, amenities, international schools (King Richard III College), and a golf course. A solid all-rounder for both lifestyle and investment.
• Palmanova & Magaluf: Once synonymous with budget tourism, Magaluf has undergone a dramatic transformation. New luxury hotels, boutique restaurants, and upmarket developments have repositioned the area. Palmanova retains a family-friendly feel. Prices are lower than Santa Ponsa, offering stronger rental yields.
• Portals Nous & Puerto Portals: The luxury end of Calvià. Home to Puerto Portals marina, high-end restaurants, and some of the island’s most expensive properties. Prices start north of €5,000/m² and can exceed €10,000/m² for prime seafront.

Key Data

Average price/m²	€3,800 – €6,500 (varies hugely by sub-area)
Rental yield (long-term)	3.5% – 5.0%
Tourist licence (ETV)	Very restricted for new applications in multi-family buildings; villas possible but competitive
Best for	Rental investment, lifestyle buyers, families (international schools)

Sóller and Port de Sóller

The Area

Nestled in a valley surrounded by the Serra de Tramuntana (a UNESCO World Heritage Site), Sóller is one of Mallorca’s most picturesque towns. The historic wooden tram connects the town to its port, Port de Sóller, which has a beautiful horseshoe bay and a lovely promenade lined with restaurants.

Sóller has a distinct character: it feels less “touristy” than the south-west coast, with a genuine Mallorcan atmosphere, excellent local food markets, and a strong cultural scene. The downside is access — the town sits on the other side of the mountain pass, though the Sóller tunnel (toll road) cuts the drive to Palma to about 25 minutes.

Key Data

Average price/m²	€4,200 – €5,800
Rental yield (long-term)	3.0% – 4.0%
Tourist licence (ETV)	Difficult; Sóller has been highly restrictive with new licences
Best for	Lifestyle buyers, character properties, long-term capital appreciation

Investment perspective: Sóller offers strong capital growth potential due to limited supply (UNESCO protection restricts new development) and enduring demand. Rental yields are moderate because property prices are high relative to rents, and tourist licence restrictions make short-term letting difficult. It is an excellent lifestyle purchase with solid long-term appreciation rather than a yield play.

Pollença and Port de Pollença

The Area

In the north of the island, Pollença is a charming medieval town with a famous Sunday market, Roman ruins, and a thriving arts scene. Port de Pollença, a few kilometres away on the coast, has one of Mallorca’s longest and most beautiful bays, backed by the Tramuntana mountains.

This area has one of the most established British expat communities in Mallorca. You will find English-speaking doctors, dentists, and tradespeople easily. The Pollença area is also popular with cycling tourists (the Tramuntana mountain roads are world-class), which supports the rental market outside the peak summer months.

Key Data

Average price/m²	€3,500 – €5,200
Rental yield (long-term)	3.5% – 4.5%
Tourist licence (ETV)	Moderately restricted; some availability for detached villas
Best for	British expats, retirees, cycling/outdoor enthusiasts, family holidays

Investment perspective: Pollença offers a balanced mix of lifestyle and investment potential. Prices are more accessible than the south-west coast or Sóller, and the extended tourist season (cycling from February to May, and September to November) supports occupancy rates. The established expat community also creates demand for long-term rentals.

Andratx and Port d’Andratx

The Area

Port d’Andratx is Mallorca’s premier luxury harbour. The setting is spectacular: a deep natural harbour ringed by pine-covered hills, with a cluster of excellent restaurants and galleries along the waterfront. The town of Andratx itself, a few kilometres inland, is more traditionally Mallorcan and significantly more affordable.

This is where you find some of the island’s most expensive properties. Hillside villas with harbour views regularly trade for €3–10 million, and a handful of super-prime properties have sold for over €20 million. But there are also apartments in Port d’Andratx from the €400,000–€600,000 range.

Key Data

Average price/m²	€5,500 – €9,000+ (Port d’Andratx); €3,000 – €4,500 (Andratx town)
Rental yield (long-term)	2.5% – 3.5% (luxury segment has lower yields but strong capital growth)
Tourist licence (ETV)	Very limited in Port d’Andratx; slightly easier in rural Andratx
Best for	Luxury buyers, capital appreciation, prestige

Investment perspective: Port d’Andratx is a capital growth play rather than a yield play. The area consistently outperforms the island average for price appreciation, driven by international demand and severely limited supply. The town of Andratx (inland) offers much better value and stronger yields for those willing to sacrifice the harbour views.

Santanyí and Cala d’Or

The Area

The south-east of Mallorca has seen some of the strongest price growth on the island over the past five years. Santanyí is a handsome stone town with a Saturday market and a growing reputation among German and Scandinavian buyers. Cala d’Or is a well-established resort with multiple coves, a marina, and good amenities.

The south-east coastline is dotted with stunning calas (coves) — Cala Llombards, Cala Santanyí, Cala Mondrago (within a national park) — that attract visitors year-round. Es Trenc, one of the Mediterranean’s finest beaches, is nearby.

Key Data

Average price/m²	€3,800 – €5,500
Rental yield (long-term)	3.5% – 5.0%
Tourist licence (ETV)	Moderately available for villas; restricted in multi-family buildings
Best for	Holiday lets with ETV, lifestyle, growing area with upside

Investment perspective: Santanyí is one of the more interesting investment propositions in Mallorca right now. Prices have risen sharply but remain below the south-west coast, and the area continues to attract new buyers. ETV licences are somewhat easier to obtain here than in Calvià or Palma, which supports the holiday rental business case. The combination of capital growth potential and reasonable rental yields makes this area worth serious consideration.

Palma de Mallorca

The Area

Mallorca’s capital is a vibrant Mediterranean city with a population of around 420,000. The Old Town (Casco Antiguo) is architecturally stunning, with the cathedral, Arab baths, and labyrinthine streets full of independent shops and restaurants. The Santa Catalina neighbourhood has become one of the trendiest areas in the western Mediterranean, with a brilliant food market and thriving nightlife.

Palma offers something no other part of Mallorca can: year-round life. Restaurants, cultural events, schools, hospitals, and services operate twelve months a year, unlike resort areas that can feel deserted in winter.

Key Data

Average price/m²	€3,800 – €6,500 (Old Town and Santa Catalina premium; outskirts lower)
Rental yield (long-term)	4.0% – 5.5%
Tourist licence (ETV)	Banned for apartments in Palma since 2018; only villas in select zones
Best for	Year-round living, long-term rentals, urban lifestyle, young professionals

Investment perspective: Palma offers the strongest year-round rental market on the island. The ban on tourist lets in apartments has pushed demand into the long-term rental market, where tenants sign 12-month (or longer) contracts. Occupancy is effectively 100% for well-located, well-maintained properties. Capital appreciation in prime Palma neighbourhoods (Old Town, Santa Catalina, El Terreno, Son Espanyolet) has been consistently strong. The trade-off is the ETV ban — if short-term holiday lets are your strategy, Palma is not the place.

Alcúdia and Playa de Muro

The Area

Alcúdia occupies the north-east of Mallorca and combines a beautifully preserved medieval walled town with one of the island’s longest sandy beaches (Playa de Muro). It is enormously popular with families — the shallow, calm waters of Alcúdia Bay are ideal for young children — and the area has excellent amenities, a large commercial port, and easy access to the Tramuntana mountains.

Compared to the south-west coast, Alcúdia is more affordable and offers a more relaxed, family-oriented atmosphere. It is less fashionable than Pollença or Sóller, which is precisely why prices are lower and yields are higher.

Key Data

Average price/m²	€2,800 – €4,200
Rental yield (long-term)	4.0% – 5.5%
Tourist licence (ETV)	More available than many areas; Alcúdia has been relatively open to licences
Best for	Family holidays, affordable entry point, holiday letting, strong yields

Investment perspective: Alcúdia is arguably the best value proposition in Mallorca for investment buyers. Lower entry prices, strong summer rental demand (especially from families), and relatively accessible ETV licences create a compelling combination. The area may not have the glamour of Port d’Andratx or the charm of Sóller, but the numbers work. Capital growth has been solid at 5–8% per year, and gross rental yields of 5%+ are achievable with a well-managed holiday let.

Tourist Rental Licences (ETV): What Every Investor Must Know

The Estancia Turística en Vivienda (ETV) licence is the legal authorisation to rent your property to tourists on a short-term basis. Without one, holiday letting is illegal and can result in fines of €20,000 to €40,000 for a first offence. Here is what you need to know:

Current Regulations (2026)

• Apartments in multi-family buildings: Banned in Palma. In other municipalities, new licences for apartments are either frozen or severely restricted. Some areas allow renewal of existing licences but not new applications.
• Detached villas and townhouses: Licences are still available in many municipalities, but the process is slow, requirements are strict, and quotas apply. You must comply with energy efficiency, safety, and capacity regulations.
• Zoning matters: Each municipality has its own zoning plan that defines where ETVs are permitted. Some zones are completely excluded. Always verify the zoning of a specific property before purchasing for holiday rental.
• If you buy a property with an existing ETV: The licence generally transfers with the property, but you must re-register it in your name. Verify that the licence is current, compliant, and not subject to any pending enforcement action.

The Financial Impact

A property with a valid ETV licence is worth significantly more than an identical property without one — typically 15–30% more depending on the area and rental potential. Conversely, buying a property without an ETV and hoping to obtain one is a gamble. Factor the licence situation into your purchase price negotiation.

Alternatives to Short-Term Letting

If you cannot obtain an ETV, long-term letting (12+ month contracts) is legal without a licence and can still generate attractive returns, particularly in Palma and well-connected areas. Mid-term rentals (1–11 months) occupy a grey area that is being clarified by regulation — take legal advice before pursuing this strategy.

Comparing Areas: Quick Reference

Area	Price/m²	Yield	ETV Availability	Best For
Calvià	€3,800–6,500	3.5–5.0%	Limited	All-rounder, families
Sóller	€4,200–5,800	3.0–4.0%	Very limited	Lifestyle, appreciation
Pollença	€3,500–5,200	3.5–4.5%	Moderate	British expats, outdoors
Andratx	€5,500–9,000+	2.5–3.5%	Very limited	Luxury, capital growth
Santanyí	€3,800–5,500	3.5–5.0%	Moderate	Growth area, holiday lets
Palma	€3,800–6,500	4.0–5.5%	Banned (apts)	Year-round rental, urban
Alcúdia	€2,800–4,200	4.0–5.5%	Good	Value, families, yields

Post-Brexit Considerations for British Investors

A few Brexit-specific points for British buyers considering Mallorca investment property:

• The 90/180-day rule limits how long you can stay without a visa. If you plan to manage a rental property yourself, you will need to arrange a local property manager for the months you are not on the island.
• Non-resident tax on rental income is 24% (vs 19% for EU residents), and non-EU landlords cannot deduct expenses against rental income. This reduces net yields compared to what an EU-resident investor would achieve on the same property.
• Spain’s Golden Visa was discontinued for new real estate applications in April 2025. If residency is important to you, explore alternative routes (non-lucrative visa, digital nomad visa, entrepreneur visa) alongside your property purchase.
• Currency risk is ongoing. If your rental income is in euros and your expenses are partly in pounds (or vice versa), exchange rate movements will affect your net returns. Consider keeping a euro account for Spanish property income and expenses.

Final Thoughts: Choosing the Right Area

The “best” area in Mallorca depends entirely on what you want from your investment:

• Maximum rental yield: Alcúdia or Palmanova (Calvià), especially with an ETV licence.
• Capital appreciation: Port d’Andratx, Sóller, or prime Palma (Old Town/Santa Catalina).
• Year-round rental income: Palma, with its 12-month tenant demand.
• Balanced investment + lifestyle: Pollença, Santanyí, or Santa Ponsa.
• Best value entry point: Alcúdia, inland Andratx, or emerging areas in the east (Artà, Capdepera).

Whatever area you choose, due diligence is essential. Verify the ETV licence situation, check for outstanding community debts, understand the zoning, and get an independent valuation before committing. The Mallorca property market rewards well-prepared buyers and punishes those who rush in without proper advice.