Germans Lose Interest in Mallorca: A Declining Favorite Destination

In recent years, a shift has been observed in the tourism and real estate market of Mallorca, Spain.

Firstly, several destinations in Spain have either increased or introduced tourist taxes this year, which could be a contributing factor to the decline in tourist numbers. This is particularly noticeable in the case of German tourists, who have traditionally been among the top three foreign holidaymakers in Spain, along with the British and the French.

Last year, there was a 7 percent drop in overnight stays by Germans in July, and this trend seems to be continuing. One of the main reasons for this decline is that Spain and particularly Mallorca are no longer offering good value for money. The cost of eating out in restaurants has risen by 4.2 percent since March last year, and the average price increase for hotels was 6.5 percent compared to the first half of 2025.

Moreover, the average annual price growth for buying a property in Mallorca is 10.5 percent, making it the highest increase in real estate prices in Spain. This has led to concerns among German property owners, many of whom bought properties on the island in the 60s, 70s, and 80s, attracted by tax benefits and the island's charm. However, over the decades, the number of Germans living in Mallorca has fluctuated between 15,000 and 60,000, and it has decreased from 31,096 in 2011 to 15,385 in 2021.

The high cost of living in Mallorca is another factor deterring German tourists and residents. Some German residents have expressed disillusionment with their lives on the island, complaining about social problems, rising food prices, unaffordable rents, housing shortages, and overcrowding.

The declining interest in Mallorca among Germans is also due to economic changes, rising housing costs in Germany making domestic alternatives more attractive, and potentially changing travel preferences. This could have significant consequences for Mallorca's tourism, including a slowdown in German visitor numbers and potential decreased demand and price adjustments in the real estate market.

According to a report by German IPM Real Estate Services, there was a significant increase of 30 percent in rental prices in the Balearic Islands in 2024. This, coupled with the rising costs of buying property, means that by the end of this year, it's likely that property in Mallorca will be more expensive than the average in Germany.

These factors have led many German residents and property owners in Mallorca to sell up and head home. According to a local newspaper, Última Hora, these are the reasons that many are choosing to leave the island. Despite the historical charm and attractions of Mallorca, it seems that the changing economic landscape is driving a shift in the preferences of German tourists and residents.