Scarcity on Mallorca reaches new dimensions in 2025: Average rents have risen sharply in just a few years, while supply has shrunk by a third.
The situation on the rental market in Mallorca has developed into a social crisis in recent years. With rental prices of around 1,600 euros per month (in a median corridor with strong seasonal fluctuations), affordable housing is becoming unattainable for more and more people - a drastic increase from an average of around 1160 euros in 2021.
Geographically, you have to be flexible on the Balearic Islands to find anything at all: While in Inca and Manacor you can still find relative „bargains“ at 11.30 euros per square meter, in the hyped Ibiza -City up to 33.7 euros are due. An average 80-square-meter apartment in the capital of the neighboring luxury island already costs 2,696 euros per month. Other places on Ibiza are also recording the highest prices.
Mallorca seems almost cheap in comparison and is also likely to rank slightly below top German cities such as Munich: According to statistics, Llucmajor is at 14 euros per square meter, Port de Pollença at 16.50 euros Palma at 17.20 euros. In Santanyi or Campos it is usually between 11 and 12 euros. It's a long way to the island's capital, but otherwise it's not a bad place to live.
1200 euros upwards
Before the pandemic, you might have been able to rent a family apartment for 900 euros, but now the threshold of 1000 euros has long since been passed. A programme with subsidized rents and a cap at 1050 euros („Alquiler Seguro“ / „Secure Rent“) therefore has relatively little effect, especially as you have to have been an island resident for at least five years. Also, 1200 euros, 1500 euros and more are quickly demanded for a 90-square-meter apartment. In view of the often modest salaries, this sum can be too high even if two adults work in a family.
The reasons for this development are complex: the supply of rental apartments has fallen by almost a third since the end of the coronavirus pandemic, from around 49,000 to just 33,000 units. At the same time, the robust economy and the dream of Mediterranean living are driving up demand. The competition for available apartments has reached absurd proportions in some cases.
NetworksThe index set by the Spanish central government with guide values for rents is not binding in Mallorca. At least in the summer months, the asking prices on internet portals are sometimes twice or three times higher than recommended. Reputable estate agents, a network of friends and acquaintances on Mallorca or serviced apartments, as are also available on the island, can be a way to find reasonable accommodation in some circumstances.
The precarious situation is forcing many people to find emergency solutions: They are switching to mobile homes. The city of Palma initially wanted to impose high fines to combat the phenomenon. Now it is tolerated within narrow limits: Motorhomes are allowed to stay in the same place for up to ten days. At the beginning of the year, the city council registered 156 permanently occupied vehicles, most of whose „residents“ üare even regularly registered and mostly work in the service sector.
Shared flats are also experiencing a boom, and at alarming prices: In the British stronghold of Magaluf, 14-square-meter rooms are already going for 760 euros. In Palma, a 900-euro room for two people in a spacious four-piece recently caused quite a stir, whereas the average price per room is usually around 500-600 euros. Sometimes, of course, rooms in shared flats are much cheaper. In January, the cheapest offer was 240 euros.
More new construction
The conservative government under Marga Prohens is focusing on far-reaching liberalization of regulations and faster approval procedures. Vacant commercial premises should be easier to convert into apartments. Semi-legal buildings in the countryside can be partially legalized for a fee. 20,000 new residential units are to be built in Palma alone in the coming years if the building planning law can be fundamentally changed.
However, critics do not see these measures as a short-term solution to the acute crisis. The Spain-wide rent cap does not apply on the Balearic Islands. Although the annual rent increases for existing contracts are capped at 3 percent, there are sometimes hardly any limits for new rentals.
Seasonality
For the time being, the only advice for apartment hunters is to plan their search for the long term and to use the winter months between November and February in particular, when the market is somewhat more relaxed. The situation is heavily dependent on the time of year and seasonal workers, for whom a stay in the Balearics is becoming increasingly unattractive. Some therefore prefer to stay in their home country on the mainland, where there are currently better job opportunities than there were a few years ago. Conversely, seasonality means that there is hardly anything available in May for those who make last-minute decisions. A move to the island therefore needs to be carefully considered and planned well in advance.
Employer staff apartments are becoming increasingly important - for many companies, they are the only way to find employees at all.The standard rental period in Spain has been extended from three to five years by the left-wing central government, with an option for a further three years. However, many landlords circumvent this regulation by offering short-term contracts based on seasonal work or temporary stays. A gray area develops in which both sides have to improvise - a typical Mediterranean phenomenon. If there are no problems and payment is always made on time, a regular rental contract may follow later under certain circumstances. Improvisation has to be learned.
Experts do not expect the situation to ease quickly in the coming years. Some of the protests against the housing shortage are also directed against „mass tourism“, although package vacations have little to do with the home-grown problems.
Michael U. Maier
