If sales and listings in late 2022 through the end of the year show anything, it is that the Balearic Islands have become a hotspot for rural real estate. Brokers, rural investors, families, and foreign buyers report a strong and rising demand for farms and rustic properties. The trend has pushed values higher, making land more competitive and affecting how farms are managed and how landscapes around the islands evolve.
doubled in ten years
The most reliable figures come from the National Institute of Statistics. By October 31 of this year, a total of 3,857 rural farms had been sold on the islands. With two months still to go, more than 4,450 properties were listed for sale, marking a historical peak for the Balearics. In 2021, 4,398 transactions closed. The pandemic year of 2020 saw 3,058 deals, while 2019 recorded 3,695 transactions. Real estate activity in rural settings has outpaced urban sales in recent years. Looking back a decade, 2012 saw 2,103 rustic farm purchases, illustrating that such transactions have roughly doubled over the last ten years, aligning with broader social and economic changes during the period.
Belief in growth continues to be supported by what happened in 2016 when the market for villas connected to rural plots surged in tandem with a tourism boom. A Terraferida study from that year showed high income from tourist accommodations. Airbnb-related earnings across the islands reached substantial levels, underscoring why rural properties attract strong interest from investors seeking profitability through diverse uses.
25% purchase for first residence
Lucie Hauri, a specialist in the southeast real estate market since 1982, notes that most buyers of rustic properties come from Germany, Switzerland, Sweden, and the United Kingdom, though the share from traditional markets has been shrinking. About a quarter of buyers purchase a rustic property as their first home, often bringing families to the islands because children attend local schools such as Rafael Nadal. Some buyers plan to build homes for remote work or future residence, while roughly half purchase for personal use rather than investment. Prices remain high, and demand shows no sign of easing. A shifting policy on preserving rural land and enabling new construction adds another layer of uncertainty for buyers with significant capital.
The Balearic Association of Realtors notes a similar pattern. The surge in urban housing sales mirrors the rise in rustic purchases, with open space and nature appealing to buyers post pandemic. In some prime areas near Santa Maria, Alaro, Santanyi, Pollenca, and Artà, prices have climbed to levels where properties start at around 200,000 euros but can exceed 400,000 euros in competitive pockets.
Another recurring theme is the policy environment. A 2020 decree aimed at preserving rural land and halving new homes has sharpened the perception that access to building licenses could tighten. Some observers argue this policy could further inflate demand and prices, while others say it may still disincentivize agricultural development if it reduces the potential returns from farming. Industry leaders emphasize the need for dialogue among landlords, agricultural representatives, and policymakers to keep farming viable while accommodating prudent development on rural plots.
The biggest operation in history: the sale of La Fortalesa de Pollença
Investors in Mallorca have tended toward smaller, scalable rural holdings, but a landmark deal this year stands out. The sale of La Fortalesa de Pollença to a Norwegian investor marks the largest rustic transaction in the island’s recorded history. Other notable transactions include significant acquisitions along a coastline stretch spanning 18 kilometers, driven by strategic long-term value considerations and the belief that development opportunities may arise in the future.
“All of Mallorca will eventually be divided into two neighborhoods”
Natalia Bueno, president of the Balearic Realtors Association, has extensive knowledge of the Es Raiguer region. She notes developers are often purchasing large plots with plans to build multiple homes. Foreign buyers from northern Europe are active in the market, and demand remains strong for high-end rural and semi-urban projects. Prices for desirable parcels frequently reach the seven-figure range. Illegal plots and irregular investigations carry a heavy depreciation but still attract demand from a younger cohort of buyers aged thirty to fifty. Local residents express concern about preserving agricultural identity, with some suggesting farms should continue to contribute to the countryside through farming or other agricultural activity. There is also rising interest in solar initiatives on rural plots, and inquiries to buy or lease plots for solar development appear weekly. Leases for agricultural land and solar projects can be lucrative, with yearly yields reflecting the scale of investment and the need for long-term planning.