Mallorca’s popularity with both foreign residents and holidaymakers makes it one of the most expensive places to live in Spain and its cost of living is similar to the largest cities of Madrid and Barcelona. 

Mallorca is located at the centre of the Balearic chain and is known both for its luxurious lifestyle and opulent villas, as well as its package holidays and pumping nightlife.

People are also attracted to Mallorca for its natural side, home to the UNESCO World Heritage Tramuntana Mountains, a national park and several natural parks.

Obviously, prices will vary depending on where on the island of Mallorca you choose to live. One of the most expensive places to live on the island is of course the capital of Palma de Mallorca. If you look around, however, you can find cheaper inland villages. 

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How do costs in Mallorca compare with other parts of Spain?

According to Yes Mallorca estate agency, Mallorca is the second most expensive Balearic Island to live on after Formentera.

Through a series of studies, Palma City Council found that an adult living on their own would need to earn a salary of €1,421 per month to be able to survive in the city, while an adult with a child under the age of 24 would need €1,943 per month. Two adults living together would need a total of €2,532, while two adults with a child would need to earn €3,169 per month.

Looking at the price comparison website Numbeo, consumer prices, restaurant prices and groceries were all lower in Palma than in Barcelona, however, local purchasing power was lower too.

When compared with Madrid, however, consumer prices were 7.1 percent higher in Palma than in the Spanish capital. Restaurant prices were also 9.9 percent higher, while local purchasing power in Mallorca was 36.9 percent lower.

READ ALSO: How much does it really cost to live in Spain’s Ibiza? 

Rental prices in Mallorca

One of the biggest costs is of course accommodation and in the summer of 2023 rental prices in Mallorca are some of the highest they’ve ever been.

New stats released by property giant Idealista showed that accommodation prices in the Balearic Islands rose by 0.4 percent during August 2023, making the region the most expensive in the country, with an average cost of €16.5 per square metre.

According to the cost of living website VivirEnn just renting a room in a shared flat in Palma de Mallorca costs between €672 and €875 per month, while for an entire apartment, this rises to between €1,016 and €1,350. Keep in mind though that according to the stats above, this would only be an apartment around 80 metres squared or less. 

And if you’re looking for a fully-furnished new-build place, you’re looking at an average of €3,250 per month.  

Not everywhere in Mallorca is as expensive, however. Estate agency ATRIO has listed the cheapest municipalities to rent and live in Mallorca as Sant Jordi and Son Ferriol. These areas have an average rental price of €9.40 per square metre.

Buying a property in Mallorca

When it comes to buying property in Mallorca, the story is similar as it’s also one of the most expensive places to buy in the country. Holiday apartments, second homes and luxury villas are all in high demand.

The latest stats from Idealista show that the average price to buy in Mallorca in August 2023 was €3,863 /m2. This is well below the €5,859 /m2 you need to buy in nearby Ibiza, but it’s still one of the highest rates in the country and the data shows that prices only continue to rise.

But, of course, prices do vary a lot throughout the island. Data prepared by the Association of Real Estate Agents (API), extracted from the Property Registry showed that the area with the highest price square metre in Mallorca is Bendinat (Calvià), where the average cost for homes sold between January 1st, 2019 and June 25th, 2022 was €5,614.91.

The three most expensive places to buy in Mallorca are Calvià, Palma and Andratx. 

On the other hand, Petra was the cheapest place to buy on the island, where the price per square metre was €874.16, more than six times less. The second cheapest place to buy is Vilafranca. 

Household bills in Mallorca 

So, you know how much accommodation is going to cost you, but what about the day-to-day living costs in Mallorca? Property agency Yes Mallorca found that the average price for household bills including electricity, heating/air-con and water for an 85m2 apartment was €180.31 per month.

This was higher than Madrid at €139.26 per month and than Barcelona at €170.69 per month. 

The cost of internet was also found to be higher in Mallorca than in Spain’s two largest cities at an average cost of €38.11. 

Cost of groceries in Mallorca 

The cost of your weekly shop can vary a lot in Mallorca. Last year, the Organisation of Consumers and Users found that Palma was the most expensive city in Spain for a basket of groceries and prices had risen by 15.2 percent.

Thankfully Palma is no longer the most expensive, however, costs are still high. According to Numbeo, grocery prices in Palma in 2023 are 2.8 percent lower than in Madrid and 4.9 percent lower than in Barcelona.

The latest data from the site shows that on average a loaf of bread costs €0.96, a dozen eggs will set you back €2.34 and a block of local cheese will be €5.49. VivirEnn also lists 1kg of tomatoes as €1.84 in Mallorca and a litre of long-life milk as €0.87.

Transport costs in Mallorca

If you live in Mallorca it’s likely that you will get your own car as getting around will be easier, but there is a local bus network. A one-way single-journey bus ticket will cost you €2, while a pack of 10 journeys will cost you €15.