MDB DigitalPalma13/05/2024 08:54
TW
0

The surge in room rental businesses is rapidly escalating due to the soaring unaffordability of renting entire homes. With rents reaching exorbitant levels, a growing number of individuals are reluctantly embracing shared living arrangements, relegating their existence to a single room while sharing common spaces. Eduardo Robsy, former Director General of Housing and current housing advisor to Pedro Sanchez, conducted a study on rental property supply, revealing that in places like Palma, Ibiza, and other parts of the Balearics, room rentals now constitute a quarter of all real estate listings.

In Palma, the epicenter of this trend, out of 869 available listings on real estate platforms, a staggering 231 were for room rentals. Notably, over 200 of the full rental offers exceed 3,000 euros, predominantly catering to seasonal stays, rendering them unsuitable for long-term family rentals. Consequently, discounting these seasonal offerings, a striking 40% of Palma's rental market comprises individual rooms rather than entire flats.

Related news
Apartments in Menorca

Tax Agency reckons there are 8,700 illegal holiday lets in the Balearics

Robsy's study further sheds light on the average costs associated with these room rentals. In Palma, where shared housing options are more abundant, the average monthly room rent stands at 570 euros, surpassing Madrid's average of 559 euros. This means that in Palma, renting a room often exceeds the cost of a mortgage for an entire flat in ten autonomous communities, as per data from Property Registrars.

While data for other Balearic areas is less extensive due to lower room volumes, statistics from Pedro Sanchez's advisor indicate average room rental prices of 579 euros in Calvia and 532 euros in Llucmajor. Eivissa boasts the highest rates, with shared rooms in Santa Eulàlia del Riu commanding an average of 1,849 euros each, while in Eivissa town, the figure is 1,085 euros per room.

The affordability crisis in the Balearic Islands has long forced individuals into room rentals, a phenomenon now normalized across the region. Robsy notes that this trend, akin to Barcelona's experience, underscores the critical need for tailored legislation to safeguard renters' interests amidst this evolving rental landscape. He advocates for specific regulations, including subsidies for room renters under schemes like bono joven de alquiler, and measures to curb landlord exploitation, emphasising the imperative of legal clarity and tenant protection.