Apartments on Mallorca and the neighboring islands are becoming more and more expensive. The economy is also feeling the effects: Employees in tourism cannot find accommodation, and even civil servants can find it difficult.
In terms of rental prices, Ibiza was already a negative example before 2019 and is now seamlessly continuing this trend after coronavirus. There is a lack of affordable housing. Anyone looking to rent has to dig deep into their pockets. A look at the relevant web portals gives you a headache: A bed in a shared room is often available for 400 to 500 euros per month. Sleeping places in a caravan or hammocks on the balcony are also rented out.Mallorca is not quite as extreme, but rents are exploding here too. In such a way that experts are already talking about an absolute „limit“, as salaries are not keeping pace. Prices have risen by over 60 percent since 2015. In the cheapest case, a three-bedroom family apartment in the Palma area or in the southwest costs around 1,000 euros plus utilities. Even smaller apartments can hardly be found for less than 800 euros in summer.Low earningsFor comparison: in 2019, the average salary of a resident in the Balearic Islands was around 22,000 euros. More than a third even earn less than 12,000 euros a year. This is confirmed by data from the tax office. At the same time, there are comparatively many rental properties on Mallorca by Spanish standards. According to Banco de España, their share was an impressive 28 percent - just three percent below the EU average.
So where does the problem lie? One reason for the rise in rents is the high influx to the island. Every year, thousands of newcomers decide to live on the Balearic Islands. Often, but not always, these are people who are fulfilling a dream and don't need to do the math. Affordable living space on Mallorca, especially for locals, is becoming increasingly scarce due to the influx of people.
Little building land
Another cause of exploding rents is the lack of building land. The high rents on Mallorca are already having an impact on tourism and the economy as a whole. This is also shown by the example of Ibiza. On the one hand, landlords have little interest in tenants with fixed-term contracts due to the uncertainty. On the other hand, more and more workers are giving up seasonal jobs because they cannot find affordable accommodation anyway.
There are still vacancies in the catering and hotel industry on Mallorca and the neighboring islands before the season starts. Restaurants in the Sóller area, for example, have had to reduce the number of tables due to a lack of staff. A police officer who was temporarily transferred to Ibiza had to pay the landlord a whopping 34,000 euros in deposit and rent in advance, according to island media reports.These excesses are becoming known again and again, and although they cannot be generalized completely, they do reflect part of the truth, especially in the summer months. Better rental conditions, even for longer-term contracts, are sometimes available in the period from October to January. If you want to work or live in Mallorca, you should take this into account and have as much staying power as possible.
Michael U. Maier
