Mallorca Returns to Its Summer Glory
July 2022 marked a turning point for the Balearic Islands.
After two years of uncertainty, tourism, business and investment have returned — stronger than ever.
The Balearic GDP grew by 9.9%, the highest in Spain alongside the Canary Islands, while the national average remained at 4.2%.
According to Iago Negueruela, Conseller de Turisme i Treball, “the Balearic economy is once again leading Spain’s growth”.
By island:
- Ibiza and Formentera saw the strongest growth (+11.4%),
- Menorca followed with +10.5%, and
- Mallorca grew by +8.7%.
This growth reflects the full return of international tourism — and with it, new opportunities in the real estate and investment sectors.
(Reference: INE – Balearic Islands Economic Indicators)
Mallorca’s Property Market: Solid and Profitable
The resurgence of tourism has reignited the Mallorca property market, making it one of the most profitable in Spain.
With the islands leading national economic growth, demand for housing, rentals, and investment properties continues to rise.
Remote work and the rise of the digital nomad lifestyle have also fuelled demand for long-term rentals and second homes, extending the seasonality of the market.
Real Estate Performance (2021–2022)
- Rental profitability: 11.03%
- Sales profitability: 12.17%
- Overall average return: 3.85%
In May 2022, the average price of second-hand housing rose in 16 of the 18 Balearic municipalities.
The most notable increases were:
- Santa Margalida: +45.5%
- Mahón: +20%
- Capdepera: +17.1%
- Sant Josep de sa Talaia: +13%
- Alcúdia: +11.7%
- Santa Eulària des Riu: +10.5%
And by price per square metre:
- Ibiza: €5,279/m²
- Santa Eulària des Riu: €4,894/m²
- Sant Josep de sa Talaia: €4,744/m²
(Reference: Idealista – Balearic Property Prices)
At Frau Legal, we help investors, buyers and international clients secure real estate transactions with full legal guarantees, from due diligence to residency advice.
The Balearic Islands: A Model of Sustainable Tourism
The COVID-19 pandemic prompted the Balearic Government to rethink its tourism model — prioritising sustainability and circular economy principles.
Under Decree Law 3/2022, the islands aim to become a European pioneer in Sustainable Tourism, focusing on:
- Social sustainability: better labour conditions and protection for hotel staff.
- Economic sustainability: supporting circular business models.
- Environmental sustainability: reducing waste and improving energy efficiency.
Key Measures Introduced
- Circular Economy Plans will be mandatory for all tourism companies.
- Hotels must install double-flush toilets and water-saving devices.
- Single-use plastic amenities will be banned.
- Improved workplace protection for hotel staff, especially housekeepers.
According to President Francina Armengol, this is an “ambitious strategy to turn tourism into a driver of positive social, environmental and economic impact”.
(Reference: Govern Illes Balears – Circular Tourism Strategy)
Conclusion: Mallorca, Always the Place to Be
With strong economic growth, renewed tourism, and an evolving sustainable model, Mallorca remains one of the best destinations in the Mediterranean — not only to visit, but to invest in.
At Frau Legal, our team of real estate and administrative lawyers guides clients through the property purchase process, Golden Visa applications, and investment planning in the Balearic Islands.
Mallorca continues to be the “place to be” — and now is the right time to invest with confidence.
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Looking forward to summer, looking forward to Mallorca: discover how the Balearic Islands lead Spain in tourism, property growth and sustainable investment — explained by Frau Legal.
