3. Attractive Rental Yields in Tourist Hotspots
If you’re considering investing in Mallorca real estate for rental purposes, the outlook is promising. During high season, popular coastal areas see occupancy rates of 70% to 90%. With tighter regulations around legal rentals, the market is becoming more professional and reliable — which also boosts tenant confidence.
A legally registered rental property can yield between 4% and 7% in 2025, depending on location and quality. This makes Mallorca real estate particularly appealing for serious investors.
4. Favorable Tax Conditions for Foreign Buyers
Tax rules remain favorable for foreign buyers in 2025. In many EU countries, no capital gains tax applies after ten years of ownership. In addition, local banks offer competitive financing options, often with interest rates below the European average.
5. Sustainability as a Key Real Estate Trend
Eco-friendly homes are becoming increasingly popular. New builds with solar panels, A-rated energy labels, and water-saving systems are in high demand. These homes retain their value better in 2025 compared to less efficient alternatives. When buying property in Mallorca, sustainability and build quality are key factors to consider.
2025 Is the Time to Invest in Real Estate in Mallorca
The combination of rising international demand, limited supply, strong rental yields, favorable tax conditions, and a growing focus on sustainability makes 2025 the ideal year to invest in property in Mallorca. Whether you’re looking for a personal retreat or a strategic investment, now is the time to make your move.
Interested in learning how we can assist you? Royal Estates is here to guide you through every step of the buying process. Contact us today for a no-obligation consultation about your real estate opportunities on Mallorca.
