The Revaluation of Properties Rises by 15% Every Year
A Continuous Growth in the Balearic Real Estate Market
According to our experience at Frau Legal, since 2020, property values in the Balearic Islands have increased by at least 15% annually.
Every year, we observe two clear trends:
- Steady price increases, and
- A growing number of international buyers willing to pay market value — and often above it.
This situation creates a dual opportunity: it’s a good time to sell, but also a good time to buy.
Buyers can enjoy their property and, thanks to the revaluation, offset the cost of mortgage interest through capital appreciation.
The Balearic Islands are currently at one of the most dynamic moments in their real estate cycle, attracting both lifestyle buyers and long-term investors.
Property Prices Continue to Rise
According to Euroval’s Real Estate Market Report, the average value of new housing in the Balearic Islands has surpassed pre-crisis highs, making it the Spanish region with the highest price growth.
Over the last 15 years, property prices have risen by 108.2% — an extraordinary figure that reflects both local demand and international interest.
(Reference: Euroval Real Estate Observatory)
The reasons behind this sustained increase are clear:
- High quality of life and strong infrastructure.
- Exceptional geographic location in the Mediterranean.
- International connectivity through Palma, Ibiza, and Menorca airports.
- Stable legal and economic environment, especially attractive for EU and UK buyers.
Ways to Acquire Property in the Balearic Islands
At Frau Legal, we assist both residents and foreign investors in acquiring property safely and efficiently. Below are the main legal mechanisms available in Spain:
1. Purchase and Sale
The most common method.
A bilateral and onerous contract where the seller transfers ownership in exchange for a price in money.
- Governed by the Spanish Civil Code (Articles 1445–1537).
- Requires public deed before a Notary for registration.
(Reference: BOE – Civil Code)
2. Succession
Ownership transfers upon the death of the owner through inheritance.
The process involves acceptance, partition, and registration of the inherited property in the Land Registry.
3. Donation
A gratuitous transfer of ownership between living persons.
Requires mutual consent and, for immovable property, must be formalised in a public deed.
4. Dation in Lieu of Payment (Dación en pago)
A legal alternative allowing a debtor to deliver property to the creditor to settle a debt, often used in mortgage cases.
5. Acquisition by Public Auction
Properties may also be acquired through judicial or notarial auctions, where the buyer offers the highest bid.
This method is increasingly used in bank and institutional sales.
(See also: Spanish Official State Gazette – Public Auction Regulation)
Conclusion: Investing with Long-Term Vision
With annual revaluations of around 15%, the Balearic property market remains one of the most profitable and resilient in Europe.
Whether you are buying a home to live in, rent out, or hold as an investment, now is an optimal moment to act.
At Frau Legal, we guide you through every stage of the process — from due diligence and contract drafting to tax structuring and Golden Visa applications.
Investing in the Balearics is not just a financial decision — it’s a long-term commitment to quality of life and value appreciation.
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The revaluation of properties rises by 15% every year: discover why investing in the Balearic Islands remains profitable and legally secure — explained by Frau Legal.
