There is huge interest in rental properties in Palma. | Majorca Daily Bulletin reporter

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Property rental rates in the Balearics do not appear to be showing any signs of falling, despite the heated debate about the housing crisis, lack of it and high rates which young people and overseas workers can not afford. Five municipalities in the Balearics were among the most expensive areas to rent a property in the last quarter of 2024, according to a study by Idealista that analyses nearly 150 municipalities in the country.

Santa Eulària des Riu in Ibiza had the second highest average total rental price in the most sought-after areas, at 3,919 euros per month. In fourth place was Sant Josep de Sa Talaia (3,566 euros), followed by Calvia (2,828 euros), Sant Antoni de Portmany (2,597 euros) and Ibiza Town (2,584 euros). Among the most sought-after areas in Mallorca, those that registered the highest prices in the last quarter of the previous year were Llucmajor (2,052 euros), Palma (1,688 euros) and Manacor (1,407 euros).

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According to the study’s ranking of the most sought-after areas for renting housing, Palma is the most sought-after area in the Balearics. It is followed by Manacor (28), Llucmajor (66), Sant Antoni de Portmany (72), Ibiza Town (77), Calvia (85), Santa Eulària des Riu (113) and Sant Josep de sa Talaia (115) in the national standings.

And, based on what is being advertised on property websites, almost a third of rented accommodation is for rooms. On one site there are some 2,500 ads for rent; around 800 of these are for rooms. In Palma there are 1,474 places for rent, 539 of which are rooms.
The lowest price for a room is 240 euros per month. The highest price is 1,700 euros for a room on C. Monseñor Palmer in Palma.

On prices, unofficial data from the Idealista website show that the average rental price in the Balearics increased by 9.5% in the fourth quarter of 2024 compared with October to December 2023. This is well above the 2.2% annual increase which is the reference index price for rental contracts as published by the National Statistics Institute.