This report covers:
- Andratx Market Overview
- Luxury Villa Price Distribution
- Three-Year Price Performance
- Market Drivers
- Investment Value Assessment
- Outlook for Andratx Villas
When examining villa and other residential property prices throughout Mallorca, Andratx is clearly the island’s most expensive municipality. As of September 2025, using cleaned reporting data from Idealista, average prices in Andratx reached €7,545 per m², compared with a Mallorca-wide average of €5,003 per m², roughly 51 percent higher. The average listing price for villas and houses in Andratx is €4.38 million, around 62 percent above the island average of €2.7 million. Andratx is also 8 percent more expensive than its prestigious neighbour Calvià, the next-highest municipality, despite both sharing the island’s prime southwest coastal corridor. We will be focusing on the Andratx villa market because this property group is the predominant reason for the pricing premium. In this article, we take a detailed look at whether villas in Andratx justify their elevated price, what drives their prices, and what buyers get for their money.
| Location | Average Villa Listing Price (€) | Average Property Price per m² (€) |
|---|---|---|
| Andratx | 4.38M | 7,545 |
| Mallorca | 2.7M | 5,003 |
Price Variation Within Andratx
We looked at price variation across Andratx and market share by focusing on the key neighbourhoods within the municipality. In order to gain a clearer understanding of how the different neighbourhoods within Andratx influence the overall municipal average, the table below compares the main areas by their average property prices and market share.
| Neighbourhood | Average Property Price (€/m²) | Market Share (%) |
|---|---|---|
| Andratx Pueblo | 3,984 | 21 |
| Es Camp de Mar | 6,957 | 9 |
| Port d’Andratx | 9,027 | 59 |
| Sant Elm – S’Arracó | 7,162 | 11 |
| Municipality Average | 7,545 | 100 |
Our data highlights the large price variation between Andratx’s neighbourhoods — from the most expensive area, Port d’Andratx (€9,027 /m²), to the more moderately priced Andratx Pueblo (€3,984 /m²). The exceptionally high prices in Port d’Andratx are driven by strong international demand from luxury lifestyle buyers, whereas Andratx Pueblo reflects a more local and traditional market. In terms of supply, Port d’Andratx accounts for 59 % of all listings, making it by far the dominant contributor to overall market composition and the primary determinant of the municipality’s average price level.
Price Distribution of Luxury Villas in Andratx vs. Mallorca
When assessing the pricing premium for villas for sale in Andratx versus island-wide prices, the positive price differential is far more significant in the higher brackets. Therefore, we have used a minimum price point of €3 million and focused on the luxury sector. We have analysed the concentration of villas in Andratx using cumulative price thresholds, showing the percentage of listings priced above key price points - from €3 million to over €20 million - compared with Mallorca overall.
Concentration of Luxury Villas by Price Point
| Price Point (€) | Andratx – % of Listings Above | Mallorca – % of Listings Above |
|---|---|---|
| Over €3M | 44.9% | 30.3% |
| Over €4M | 29.5% | 16.6% |
| Over €5M | 23.7% | 10.8% |
| Over €7.5M | 17.0% | 5.3% |
| Over €10M | 10.1% | 2.3% |
| Over €15M | 2.9% | 0.7% |
| Over €20M | 1.3% | 0.3% |
Source: Idealista – Price evolution of housing for sale in Baleares, September 2025; and Kyero, October 2025.
The key takeaway from this comparison is that Andratx has a significantly higher percentage of its total villa supply in every price bracket above €3 million compared with the wider property market of Mallorca. As we move toward the super-luxury sector, the relative concentration of Andratx villas becomes even more pronounced. At the starting threshold of €3 million, 44.9% of Andratx villas fall above this level, compared with 30.3% across Mallorca – a factor of one and a half times higher. However, at €7.5 million and above, the gap widens sharply: 17.0% of Andratx villas are listed in this range versus just 5.3% for Mallorca, meaning Andratx holds over three times the proportional share of ultra-high-end villas.
Three-Year Price Performance: Andratx Property vs. Mallorca
One important metric for assessing value for money is capital growth potential. Here, we compare the three-year price performance of Andratx property against the wider Mallorca market.
| Year | Andratx (€/m²) | Mallorca (€/m²) | Premium (Andratx vs Mallorca) |
|---|---|---|---|
| Sept 2023 | 6,273 | 4,045 | +55.1% |
| Sept 2024 | 7,463 | 4,550 | +64.0% |
| Sept 2025 | 7,545 | 5,003 | +50.8% |
Source: Charlesdel Research based on Idealista data, September 2023–2025.
Note: Average property prices for Mallorca have been calculated using our own research – a weighted aggregation of municipal-level data – providing a genuine island-wide figure rather than a Balearic regional proxy.
Compound Annual Growth Rate (2023–2025):
• Andratx: +9.7% per year (nominal) / +6.7% (real)
• Mallorca: +11.2% per year (nominal) / +8.2% (real)
Inflation adjustment was based on the annual Consumer Price Index (CPI) rate of 3.0% for September 2025, as reported by Spain’s National Statistics Institute (INE).
Over the past three years, both Andratx and Mallorca have recorded strong compound annual growth in average property prices per square metre - 9.7% and 11.2% in nominal terms, equivalent to approximately 6.7% and 8.2% after adjusting for inflation. To put these figures into perspective, house prices in the European Union rose by 5.4% year-on-year in Q2 2025, according to Eurostat’s Housing Price Index (nominal values, not adjusted for inflation) (Eurostat). This shows that, in nominal terms, property prices in Andratx and Mallorca have been appreciating at roughly 1.8 and 2 times the pace of the European housing market.
Market Drivers
Dramatic Clifftop and Marina Views
The municipality of Andratx is well known for its dramatic clifftop scenery, with striking rock formations and fantastic sea views. These areas are ideal for luxury villas – they benefit from an oceanfront location but enjoy more privacy than beachfront property. In Port d’Andratx, the most exclusive villas, especially as you move towards the super-luxury sector, combine clifftop sea views with proximity to the marina – two key defining characteristics behind the high price tags.
Proximity to the Coast
When considering luxury properties in resort destinations where the sea and beach are the main attraction, one of the most consistent drivers of value is proximity to the ocean. This is true for both tourism and property investment markets. It is no coincidence that roughly two-thirds of the Andratx municipal boundary is coastline - a geographic feature that plays a central role in supporting its premium price levels.
Our broader analysis across Mallorca shows that areas with coastline command price premiums of around 40% compared with inland zones, confirming how proximity to the sea remains one of the island’s strongest value drivers. In the case of Andratx, limited coastal land availability amplifies this effect, with its seafront neighbourhoods such as Port d’Andratx achieving some of the highest prices per square metre on the island.
For a detailed breakdown of Mallorca’s coastal premium and comparative pricing between inland and seaside areas, see our Mallorca Property Prices and the Coastal Premium report.
Premium Southwest Peninsula
Andratx benefits from a premium position in the most sought-after region of the island - the southwest - occupying the island’s southwestern coastline and bordering Calvià, the second most expensive municipality. It offers easy access to the capital, Palma, and to international air connections. The southern part of the island also has the best infrastructure and amenities, including road networks, utilities, telecommunications, schools, and leisure facilities.
Assessing Value for Andratx Villa Investments
Rental Yields
Below you can see our comparison of rental yields for Andratx, three other key municipalities for luxury property, and the average figure for Mallorca, calculated using data from end-October 2025 sourced from Idealista.
| Location | Gross Rental Yield (%) |
|---|---|
| Mallorca | 5.1% |
| Andratx | 4.5% |
| Calvià | 4.8% |
| Palma | 5.1% |
| Pollensa | 5.5% |
Our data shows that rental yields in Andratx are comparable but slightly below the island-wide average and those of Calvià, Palma, and Pollensa. One key reason is that, in general, the highest rental yields are not achieved in the highest price brackets. Because Andratx has a greater proportion of its housing stock in the luxury and super-luxury segments, its overall average yield is naturally lower. At these upper price levels, a higher percentage of villas are bought for lifestyle rather than rental income, and the high capital values make achieving strong returns inherently more difficult.
We should also acknowledge that in the super-luxury sector, which is particularly dominant in Andratx, the majority of villas are never rented because they are lifestyle assets. Our rental data is based only on properties that are actually listed for rent, so it doesn’t capture potential returns for these top-tier homes. However, given their very high capital values, the rental yield for such ultra-exclusive villas would in any case be lower, which would further reduce the overall average for the municipality.
Why is it the case that super-luxury villas in general achieve lower rental yields?
In the super-luxury segment, most villas are custom-built and highly individual, designed to suit the owner’s specific tastes rather than the rental market. Such homes are often owner-occupied for much of the year, which limits availability during peak holiday periods — and letting during these periods is critical to maximising short-term rental yields. Regarding long-term renting, the potential tenant pool for multi-million-euro properties is extremely small, meaning achievable monthly rents rarely keep pace with their capital values. For these reasons, even where rentals occur, the overall return is generally lower than for more moderately priced properties with broader rental demand.
We should also acknowledge that in the super-luxury sector, which is particularly dominant in Andratx, the majority of villas are never rented because they are lifestyle assets. Our rental data is based only on properties that are actually listed for rent, so it doesn’t capture potential returns for these top-tier homes. However, given their very high capital values, the rental yield for such ultra-exclusive villas would in any case be lower, which would further reduce the overall average for the municipality.
Why is it the case that super-luxury villas in general achieve lower rental yields?
In the super-luxury segment, most villas are custom-built and highly individual, designed to suit the owner’s specific tastes rather than the rental market. Such homes are often owner-occupied for much of the year, which limits availability during peak holiday periods, and letting during these periods is critical to maximising short-term rental yields. Regarding long-term renting, the potential tenant pool for multi-million-euro properties is extremely small, meaning achievable monthly rents rarely keep pace with their capital values. For these reasons, even where rentals occur, the overall return is generally lower than for more moderately priced properties with broader rental demand.
Correlation Between Sales Prices and Rental Yields
Our explanation of lower rental yields at the top end of the market is clearly verified by our own data. For the four municipalities in our dataset, there is a negative correlation between average sales price per square metre and rental yield, as shown by the table below:
| Municipality | Average Sales Price (€/m²) | Gross Rental Yield (%) |
|---|---|---|
| Andratx | 7,545 | 4.5% |
| Calvià | 6,999 | 4.8% |
| Palma | 5,036 | 5.1% |
| Pollensa | 4,389 | 5.5% |
The lower average sales prices per square metre in municipalities such as Palma and Pollensa are heavily influenced by a higher proportion of moderately priced stock within their urban areas and mixed residential zones. In contrast, as noted earlier in this article, around 59% of Andratx’s property listings are concentrated in the luxury enclave of Port d’Andratx, meaning the municipality has a very limited share of mid-market housing. This structural difference helps explain why Andratx’s average sale price is significantly higher, and its corresponding rental yield lower, than those of other areas.
Note: Rental prices per square metre were calculated using the €/m² figures shown in the rental search results for each municipality on the Idealista portal, weighted by each municipality’s relative search volume on Idealista as of end-October 2025.
Note: The rental data used here reflects long-term monthly listings on Idealista, rather than short-term holiday lets. Higher returns can typically be achieved through short-term rentals, but there are no centrally published data series that quantify this. However, established local agents quote rental yields for short-term holiday lets in Mallorca generally between 6% and 8%, depending on location, seasonality, and occupancy rates.
The Lifestyle Dividend of Property in Mallorca
When assessing value it is easy to focus purely on financial metrics. Yet in the luxury property sector lifestyle considerations are often the dominant motivation behind a purchase. This is particularly true in the case of property for sale in Mallorca, a destination chosen for its natural beauty, climate and quality of life. The lifestyle dividend – the enjoyment, privacy and wellbeing that ownership provides – is difficult to quantify but central to understanding value at the top end of the market. While we cannot measure it in the same way as financial yield it represents a genuine return for many buyers: a combination of comfort, exclusivity and personal fulfilment that cannot be captured by numbers alone.
Capital Gain
Rental yield is one key financial metric for assessing property value. However, equally important, and often more significant in the luxury segment, is capital gain. As noted in Knight Frank’s 2025 Wealth Report, capital growth is the primary objective for 42% of global family-office property investors, ahead of wealth preservation (23%) and rental income (19%). The same priorities drive Andratx’s high-end villa market.
As noted earlier, for the three years ending September 2025, according to Idealista data, Andratx recorded an increase of +20.3% in average property values, equivalent to a compound annual growth rate of +9.7% in nominal terms. As an indication of investment value, this Andratx price growth outpaced average house price growth across the wider European Union over the same period by 80%.
Wealth Preservation
So what are the chances a property investor will lose money on an Andratx villa? Assuming proper due diligence on the property, they’re small. To assess downside risk, we can look at how Mallorca’s wider property market has performed through global shocks.
From 2007 to 2024, Mallorca faced five major global crises - the Global Financial Crisis, the European Debt Crisis, Spain’s austerity period, the Covid-19 pandemic, and the inflation shock following the 2022 Ukraine war. Looking at the performance of the Mallorca property market across these events (based on data from Idealista), its robustness is clear. Prices in the Balearic Islands, dominated by Mallorca, showed only moderate short-term declines and consistently rebounded to new price levels. Even during the 2008 downturn, prices in prime coastal areas such as Andratx proved notably resilient, supported by international demand and a high proportion of cash buyers.
During Covid-19, when many property markets froze, Mallorca’s prices held steady through the lockdowns and then rose steadily from late 2020 onward. The same pattern repeated in 2022–2023, when European interest rate hikes curbed credit-dependent buyers elsewhere, yet Mallorca’s prices still climbed by around 12%.
This two-decade record demonstrates that Mallorca’s fundamentals - limited developable land, sustained lifestyle demand, a high share of equity-based purchases, and the well-established worldwide reputation of Mallorca as a centre for luxury lifestyle investment – in fact, the Mallorca brand - make serious depreciation unlikely. One of the most sought-after areas on the island for luxury lifestyle buyers, prices in Andratx have more than mirrored the island-wide performance and today it commands the highest prices per square metre and the highest average list prices in the whole of Mallorca.
We can also get a closer look at Andratx’s performance in the face of severe economic shocks by analysing Idealista historical pricing data for Port d’Andratx, which accounts for around 59% of the municipality’s supply. We note that from the start of the pandemic in March 2020, the only brief price decline occurred in June 2020, when values dipped by just 0.7%, a negligible adjustment that demonstrates how resilient this luxury market remained throughout the period. By December 2020, average property prices in Port d’Andratx had risen to €6,979/m² (+8.7% year-on-year), marking an all-time high. Through 2021, prices maintained a steady upward trajectory, ending the year at €7,322/m² (+4.9% YoY). To say that the property market in Port d’Andratx showed resilience during the COVID-19 pandemic would be an understatement; it had reached an all-time high for property prices by the end of 2020.
Luxury Villas: Looking Forward
Because of the exceptionally high concentration of luxury villas in Andratx - nearly half of all listings priced above €3 million and more than a quarter above €5 million, this segment of the market deserves closer examination. Properties in these price brackets typically occupy premium plots with open views or coastal proximity. Yet even in Andratx, where roughly two-thirds of the municipal boundary is oceanfront, such land remains scarce, constrained further by Mallorca’s strict development controls. These supply constraints are set to intensify as the availability of new-build properties declines, with this growing scarcity continuing to push up prices for high-end villas occupying Andratx’s premium and increasingly rare land plots. In most coastal markets, supply constraints for luxury property stem primarily from limited sea-view and waterfront plots. In Andratx, however, there’s an additional scarcity factor - proximity to the marina - which further drives super-prime pricing.
So, are villas in Andratx really worth the price? For most buyers, the answer lies in the Mediterranean island lifestyle - an attraction that’s hard to fault. Looking at our other three measurable criteria for assessing value - capital gain, wealth preservation and rental yield - as we have shown, villa investments in Andratx clearly meet all three. This aligns perfectly with the findings of the 2025 Knight Frank Wealth Report, where these three criteria are the very priorities that define global family-office investment strategy.
