Key Highlights
- Discover some of the best towns in Mallorca to invest in real estate by the sea and in the mountains.
- Choose from luxury villas with amazing sea views or charming hillside villages with stunning scenery.
- Towns like Bendinat and Palma Old Town offer a mix of history and modern living.
- Property values in Mallorca are growing steadily, with some areas seeing 10% to 19% yearly appreciation.
- Check out up-and-coming spots like El Terreno or beautiful villages like Fornalutx for special investment opportunities.
Introduction
Mallorca, the largest of the Balearic Islands, is not just a popular tourist destination; it also offers great opportunities for real estate investment. With its stunning natural landscapes, charming towns, and rich cultural heritage, Mallorca attracts investors looking for prime properties in the Mediterranean.
From the beautiful coastal towns with sandy beaches to the traditional villages nestled in the Serra de Tramuntana mountains, Mallorca’s most beautiful towns have something for every discerning buyer. Let’s explore the best towns in Mallorca that promise not just a property but a lifestyle investment.
Our Top Towns in Mallorca for Real Estate Investment
We love Illetas and Bendinat for their calm atmosphere, family-friendly feel, and how close they are to Palma. Costa d’en Blanes is also nearby and is perfect if you want more privacy and luxury. It’s also just a short drive (or even walk) from the fancy Portals Marina.
In the city, we enjoy Palma’s Old Town because it has beautiful old buildings and everything you’ll need nearby. Portixol is another favorite—it’s lively, right by the sea, and great if you’re thinking about a place that fits a fun, active lifestyle.
If you’re looking for something new and creative, El Terreno is an exciting neighborhood that’s becoming more and more popular, especially with people from all walks of life.
For peaceful mountain living, we recommend Bunyola and Fornalutx. They’re full of charm and surrounded by nature. And if you want a quiet, relaxed home by the sea, Sol de Mallorca is a great choice with its private feel and hidden coves.
Illetas – A Peaceful Coastal Town in the Southwest
Illetas, located in the southwest of Mallorca and also where our boutique real estate agency office is, offers a tranquil coastal setting perfect for real estate investment. Surrounded by the stunning Mediterranean Sea, Illetas boasts a peaceful atmosphere ideal for those seeking an easy lifestyle.
With its sandy beaches and panoramic views, this town is a great place to invest in property.
Why Invest in Illetas
Illetas is a good investment for international buyers seeking understated luxury close to Palma. The area is known for its limited inventory of high-end coastal properties, which helps preserve value over time.
Investors looking for stable capital appreciation will appreciate Illetas’ combination of exclusivity, low-density zoning, and strong long-term demand from both second-home buyers and relocators.
Its seafront location and elevated land make it a strategic choice for those prioritizing both lifestyle and asset performance.
Take a look at this sea view flat for sale in Illetas ⇒
Quality of Life in Illetas
Buying a second home in Illetas means enjoying a slower pace of life without sacrificing access to world-class amenities or the city center. The town is favored by professionals and semi-retired buyers who value peace, safety, and proximity to Palma’s cultural and commercial centers.
Residents benefit from walkable beaches, private beach clubs like Puro Beach and Balneario Illetas, and panoramic Mediterranean views. Illetas is also well connected, making it ideal for year-round living or extended seasonal stays. For families, couples, or solo investors, the lifestyle here is balanced, elegant, and remarkably resilient to trends.
Bendinat – The Perfect Residential Area for Families
Also located in the Southwest of Mallorca, Bendinat offers a tranquil and family-friendly environment, making it the ideal residential area for families. With its proximity to the Palma city center and great views of the Mediterranean Sea, Bendinat provides a perfect blend of natural beauty and modern convenience.
The town boasts both traditional and modern architecture, spacious houses, and plenty of outdoor spaces for children to play. Families can enjoy a peaceful lifestyle while still being within reach of Palma de Mallorca and its amenities.
Why Invest in Bendinat
Bendinat is a strong choice for property investors seeking stable, long-term growth in one of Mallorca’s most prestigious residential zones. Real estate in Bendinat consistently holds its value due to limited availability, high demand among relocating families, and its reputation for exclusivity.
Investing in Bendinat is particularly appealing for buyers looking for a primary residence or a second home with long-term liveability. Its proximity to Palma, international schools, and premium golf courses makes it one of the island’s most secure and sought-after areas for real estate investment.
3-bedroom apartment for sale in Bendinat ⇒
Quality of Life in Bendinat
Bendinat is an ideal place to buy a home if you’re relocating with family. The area is peaceful, green, and well-maintained — offering a calm, secure environment just minutes from the city. Spacious villas, quiet streets, and access to top-tier schooling make it especially attractive to international families looking to settle in Mallorca.
Outdoor living is a key part of life here, with beaches, hiking trails, and the prestigious Royal Bendinat Golf Course and new paddle club all close by. For those who want space, safety, and understated luxury, Bendinat delivers a refined and balanced lifestyle.
Costa D’en Blanes – Overlooks the Marina
Perched elegantly overlooking the glistening Mediterranean Sea, Costa d’en Blanes is one of the more prestigious towns in the Calvia area. This exclusive residential area boasts breathtaking sea views, lavish villas with immaculately landscaped gardens, and a serene ambiance that attracts high-profile residents.
With its proximity to the upscale Portals marina, Costa d’en Blanes offers a perfect blend of sophistication and upscale living, making it a desirable location for real estate investment in Mallorca.
Why Invest in Costa d’en Blanes
Costa d’en Blanes is a top-tier investment destination for buyers seeking exclusivity, privacy, and high capital retention. This hillside enclave offers commanding sea views and architecturally significant villas that rarely come to market. Buying property in Costa d’en Blanes is a strategic move for those looking to secure a foothold in one of the island’s most prestigious residential zones. Its reputation attracts a global clientele, which continues to drive long-term demand and price resilience across the luxury segment.
Explore this €8,950,000 villa in Costa Den Blanes ⇒
Quality of Life in Costa d’en Blanes
Relocating to Costa d’en Blanes offers residents a unique blend of seclusion and convenience. The area is minutes from Puerto Portals, one of Mallorca’s most elite marinas, as well as international schools, golf courses, and fine dining. Properties here are designed for indoor-outdoor living, with expansive terraces and balconies, infinity pools, and lush gardens that maximize sea views and privacy. The lifestyle is discreet, secure, and built around quiet luxury — ideal for those who value serenity without compromising access to Palma’s dynamic cultural and social scene.
Palma Old Town – Mallorquin Culture and Heritage
Nestled in Palma de Mallorca, the Palma Old Town exudes Mallorquin culture and heritage. Its narrow streets are lined with charming stone houses, embodying traditional Mallorcan architecture. The town offers a glimpse into the island’s rich history and is a hub for cultural exploration. Visitors can immerse themselves in the local lifestyle, explore historical sites, and indulge in the vibrant atmosphere of this authentic Spanish gem.
Why Invest in Palma Old Town
Palma Old Town is a compelling investment location for buyers seeking historic charm with strong long-term value. Real estate in this district is limited and highly coveted, especially renovated properties within centuries-old buildings. Investing in Palma Old Town offers access to a protected architectural zone, which safeguards property character and helps maintain consistent demand. Its central location and walkability make it ideal for pied-à-terre buyers or relocators.
Step inside this 4-bedroom townhouse in Palma’s Old Town ⇒
Quality of Life in Palma’s Old Town
Buying a second home in Palma’s Old Town means immersing yourself in Mallorca’s cultural and architectural heritage. The area is defined by cobblestone lanes, Gothic facades, and intimate courtyards — offering a unique sense of place rarely found elsewhere in Europe.
Residents enjoy close proximity to art galleries, fine dining, boutique shopping, and the marina -currently undergoing a massive transformation- all within walking distance. The pace is sophisticated yet vibrant, attracting cosmopolitan buyers who value authenticity, access, and year-round energy.
El Terreno – An International Hidden Gem in Palma
El Terreno, nestled in Palma, is an international hidden gem exuding a cosmopolitan charm. This vibrant neighborhood offers a unique blend of cultures and lifestyles, attracting a diverse community of residents and visitors from all over the world. With its eclectic mix of cafes, restaurants, and boutiques, El Terreno provides a captivating experience for those seeking a lively atmosphere in a picturesque setting. Its walking proximity to the enchanting streets of Santa Catalina adds to the allure of this dynamic locale.
Discover what residents say about El Terreno ⇒
Why Invest in El Terreno
El Terreno is a smart investment choice for buyers seeking early-stage growth potential in a character-rich, up-and-coming area of Palma. Once known for its bohemian spirit, the neighborhood is now undergoing a quiet renaissance, attracting international buyers and developers.
Real estate in El Terreno offers competitive pricing compared to neighboring zones, with strong upside as renovations and new projects continue to elevate the area’s profile. Investing here appeals to those looking for cultural vibrancy paired with long-term value growth.
Step inside this beautifully furnished flat in El Terreno ⇒
Quality of Life in El Terreno
Relocating to El Terreno means enjoying a creative, cosmopolitan lifestyle just minutes from the city center and the seafront promenade of Passeo Maritimo. The neighborhood is known for its artistic roots, international community, and eclectic mix of cafés, galleries, and local shops.
Residents enjoy access to green spaces like Bellver Castle and proximity to international schools and marinas. El Terreno is ideal for buyers who want a dynamic yet livable environment with a distinctly local soul and global flair.
Portixol – A Vibrant Coastal Town in Palma
Located along the Mediterranean Sea, Portixol in Palma exudes a vibrant coastal charm, attracting investors seeking a blend of seaside living and urban amenities. With its picturesque narrow streets, sea views, and excellent restaurants, Portixol offers a unique real estate investment opportunity. The area’s sandy beaches, crystal clear waters, and proximity to Palma de Mallorca make it a favored destination for those desiring a coastal lifestyle with a touch of luxury.
Why Invest in Portixol
Portixol is a prime real estate investment location for buyers seeking strong lifestyle appeal combined with reliable market performance. This once-sleepy fishing village has evolved into one of Palma’s most in-demand coastal enclaves, where seafront properties rarely stay on the market.
Investing in Portixol means gaining access to a tightly held market with limited supply and consistent interest from both international buyers and local professionals. Its proximity to Palma, the airport, and the marina strengthens its position as a high-performing micro-market.
Visit this newly built townhouse in Portixol ⇒
Quality of Life in Portixol
Buying a second home in Portixol offers a seamless blend of beachside living and urban connectivity. Residents enjoy morning walks along the promenade, dining at upscale restaurants overlooking the sea, and a laid-back yet elegant community vibe.
The area is ideal for active lifestyles, with beaches, bike paths, and watersports all at your doorstep. Its walkable layout, modern amenities, and easy access to Palma’s historic center make Portixol especially attractive to buyers who want both convenience and coastal charm all in one place.
Bunyola – Terraced Village with Breathtaking Coastal Scenery
Cuddled up in Mallorca’s picturesque rural landscape, Bunyola stands out as a terraced village offering breathtaking coastal scenery, often frequented by cyclists. Located amidst the mountains of the Serra de Tramuntana, it provides panoramic scenery of Mallorca’s rural beauty.
This small village captures the essence of Mallorca’s beauty, making it a favorite for those seeking tranquility amidst stunning panoramic vistas of both the sea and the mountains.
Why Invest in Bunyola
Bunyola is a compelling investment for buyers seeking authenticity, privacy, and long-term value in a protected natural setting. Positioned within the UNESCO-listed Serra de Tramuntana, the village offers rare access to historic stone properties with panoramic views of the mountains — a combination increasingly difficult to find.
Real estate in Bunyola benefits from strict preservation laws, which limit overdevelopment and enhance long-term capital stability. Investors drawn to heritage homes and low-density living will find strong appeal in this niche market.
Visit this breathtaking newly built finca in Bunyola ⇒
Quality of Life in Bunyola
Relocating to Bunyola means embracing a slower, more intentional lifestyle surrounded by nature. The village offers tranquility, mountain air, and direct access to hiking and cycling routes. Bunyola is also very well connected to downtown, about 20 minutes drive or about 40 minutes bus ride.
Its charming streets, traditional architecture, and strong local community make it ideal for buyers seeking a retreat from urban intensity without disconnecting entirely. Bunyola is especially attractive for families, creatives, and second-home owners in search of space, serenity, and timeless Mallorcan character.
Sol de Mallorca – A Tranquil Residential Retreat in the Southwest
Tucked away in the more secluded southwest corner of Mallorca is the town of Sol de Mallorca – meaning “sun of Mallorca”. It offers a peaceful coastal escape surrounded by nature and crystal-clear coves.
This serene residential area attracts discerning buyers in search of privacy and proximity to some of the island’s most beautiful calas. With its scenic walking paths, hidden beaches, and easy access to golf courses and international schools, Sol de Mallorca presents a compelling opportunity for real estate investment.
Why Invest in Sol de Mallorca
Sol de Mallorca is a wise investment for buyers prioritizing privacy, space, and long-term capital security in a low-density, high-quality location. Tucked between Cala Vinyes and Portals Vells in the very sought-after southwest of the island, this residential enclave offers large plots, generous homes, and a peaceful setting that’s increasingly rare along the coast.
Visit this elegant family villa in Sol de Mallorca ⇒
Quality of Life in Sol de Mallorca
Buying a second home in Sol de Mallorca means enjoying a quiet coastal lifestyle with effortless access to nature, leisure, and convenience. The area offers a unique mix of forest trails, hidden coves, and calm beaches — all without the bustle of nearby resort towns.
Residents enjoy proximity to T Golf Country Club, open space, and the picturesque bays of Cala Mago and Portals Vells. With supermarkets, international schools, and luxury shopping just a short drive away, Sol de Mallorca is perfectly suited to year-round living or extended stays.
For those seeking understated luxury in a serene environment, this neighborhood delivers both peace and potential.
Fornalutx – Awarded as the Prettiest Village in Spain
Hidden in the Serra de Tramuntana, Sa Tanqueta de Fornalutx is acclaimed as one of the prettiest villages in Spain. Its narrow streets wind through stone houses, offering panoramic views of the mountains and the Mediterranean Sea. This traditional Mallorcan town, with its charming architecture and picturesque setting, captures the essence of a quintessential Spanish village.
Why Invest in Fornalutx
Fornalutx is a standout investment for buyers looking to own a piece of Mallorca’s most celebrated village. Often awarded as the prettiest village in Spain, it offers rare access to heritage properties in a highly protected setting.
Real estate here is limited and tightly held, creating scarcity that drives long-term value. Fornalutx appeals to buyers seeking authenticity, privacy, and a deep connection to the island’s cultural and natural heritage — without compromising on access to nearby hubs like Sóller or Palma.
Visit this beautiful home in the heart of the Fornalutx mountains ⇒
Quality of Life in Fornalutx
Buying a home in Fornalutx means waking up to mountain air, terraced landscapes, and sweeping views of the Mediterranean. The village offers a tranquil lifestyle, where cobbled streets, citrus groves, and historic facades set the tone for daily life.
It attracts a mix of international buyers, creatives, and retirees who value peace, beauty, and community. Proximity to hiking trails, local markets, and the nearby coast makes Fornalutx ideal for those looking to unplug while still enjoying the best of Mallorca’s slow luxury.
4 Reasons Why Investing in Mallorca Makes Sense
As an international buyer or investor seeking to relocate or purchase a holiday home, Mallorca continues to stand out as a prime destination. Here’s why putting your money here makes strategic sense.
Proven Capital Appreciation
Mallorca’s prime real estate – especially in desirable locations such as those mentioned above – has shown a consistent yearly value growth of between 10% and 19% over the past decade. Even with global market fluctuations, luxury properties here retain their appeal and command premium prices.
High-End Lifestyle Appeal
From world-class marinas and golf courses to Michelin-starred restaurants and international schools, Mallorca offers an effortless blend of luxury, nature, and convenience — ideal for buyers seeking more than just a second home.
Strong Rental Demand
Despite tightening rental laws, there’s a constant demand for premium holiday rentals. Short-term or seasonal lets in licensed areas offer a lucrative income stream, especially in waterfront towns or historic fincas with views.
Safe, Stable, and Well-Connected
Spain remains one of Europe’s most politically and economically stable countries, with a peace index of 1.60 overall, according to Vision of Humanity. Mallorca is just a two-hour flight from most major European cities, making it an ideal base for HNW individuals and remote entrepreneurs.
Conclusion
Mallorca offers a plethora of real estate investment opportunities in its charming towns. From the tranquil Illetas to the luxurious Costa Den Blanes, each town presents unique advantages for investors and new homeowners.
Whether seeking a serene coastal retreat or a bustling cultural hub, Mallorca caters to diverse preferences. The island’s blend of history, natural beauty, and modern amenities makes it a prime destination for real estate ventures. Investing in Mallorca’s property market not only promises financial growth but also a lifestyle enriched by Mediterranean charm.
Frequently Asked Questions
Which town in Mallorca offers the best return on real estate investment?
Illetas, Bendinat, and Portixol stand out for their high returns on real estate investment in Mallorca. With peaceful coastal settings, family-friendly residential areas, and vibrant coastal towns, these locations attract investors seeking profitable opportunities.
What makes Mallorca an attractive location for property investment?
Mallorca’s allure for property investment lies in its diverse offerings, from tranquil coastal towns like Illetas to the cultural richness of Palma Old Town. With a blend of history, modernity, and natural beauty, Mallorca presents a unique and promising real estate landscape.
Are there any hidden costs in investing in Mallorca’s real estate?
While investing in Mallorca’s real estate, potential hidden costs may include property taxes, maintenance fees, and legal expenses. Conduct thorough research and consult local experts to avoid unexpected financial burdens.
How has the real estate market in Mallorca changed in recent years?
The real estate market in Mallorca has witnessed significant changes in recent years, with increased investment in towns like Illetas, Bendinat, and Portixol. From luxury villas in Andratx to the historical charm of Pollensa, Mallorca offers diverse opportunities for real estate investors.
What are the legal considerations for foreign investors in Mallorca?
Foreign investors in Mallorca need to consider residency permits, tax implications, property ownership laws, and the assistance of a local legal advisor. Understanding these legalities is crucial for a smooth real estate investment process in this beautiful destination.
