Authored by the expert who managed and guided the team behind the Spain Property Pack
Yes, the analysis of Palma de Mallorca's property market is included in our pack
Looking at renting in Palma de Mallorca or investing in rental property there? This guide covers current rental prices, top neighborhoods, and what landlords and tenants need to know in 2026.
We constantly update this blog post so you always have the freshest data on Palma de Mallorca rents.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Palma de Mallorca.
Insights
- Palma de Mallorca rents have climbed roughly 6% year-over-year, outpacing many Spanish mainland cities due to limited housing supply and strong expat demand.
- Studios in Palma de Mallorca command a higher price per square meter than larger apartments because small units are scarce and competition among singles and couples is intense.
- Santa Catalina and Portixol remain the hottest neighborhoods for expats in Palma de Mallorca, often seeing rentals get snapped up in under two weeks.
- The vacancy rate for long-term rentals in Palma de Mallorca sits between 2% and 4%, which signals a very tight market where well-priced properties rarely stay empty.
- Peak rental demand in Palma de Mallorca hits in late August and September, driven by job relocations, student arrivals, and seasonal workforce movements.
- Air conditioning is nearly non-negotiable in Palma de Mallorca rentals, and properties without it can sit on the market significantly longer.
- Landlords in Palma de Mallorca can deduct expenses like repairs, insurance, and mortgage interest from their rental income under Spanish tax law.
- The Spanish government's IRAV index caps annual rent increases on existing contracts, but new leases in Palma de Mallorca can still be set at market rates.
- Family renters in Palma de Mallorca gravitate toward La Vileta, Son Rapinya, and Son Dameto for larger homes, schools, and quieter streets.
- Furnished apartments in Palma de Mallorca typically rent for 10% to 15% more than unfurnished ones, especially in areas popular with expats and seasonal workers.
What are typical rents in Palma de Mallorca as of 2026?
What's the average monthly rent for a studio in Palma de Mallorca as of 2026?
As of early 2026, the average monthly rent for a studio apartment in Palma de Mallorca is around €650 (approximately $700 USD), which reflects the city's strong demand for small units.
Most studios in Palma de Mallorca rent between €500 and €900 per month ($540 to $970 USD), with prices at the higher end found in premium neighborhoods like Santa Catalina or the Old Town.
The main factors that push studio rents up or down in Palma de Mallorca include location (central versus suburban), whether the unit has air conditioning, and access to outdoor space like a balcony or terrace.
What's the average monthly rent for a 1-bedroom in Palma de Mallorca as of 2026?
As of early 2026, the average monthly rent for a 1-bedroom apartment in Palma de Mallorca is around €1,000 (approximately $1,080 USD), based on a typical unit of about 50 square meters.
Most 1-bedroom apartments in Palma de Mallorca rent between €800 and €1,300 per month ($865 to $1,400 USD), depending on the neighborhood and condition of the property.
Neighborhoods like Pere Garau and Son Ferriol tend to offer cheaper 1-bedroom rents in Palma de Mallorca, while Santa Catalina, Ciutat Antiga, and Portixol sit at the higher end of the range.
What's the average monthly rent for a 2-bedroom in Palma de Mallorca as of 2026?
As of early 2026, the average monthly rent for a 2-bedroom apartment in Palma de Mallorca is around €1,400 (approximately $1,510 USD), based on a typical unit of about 75 square meters.
Most 2-bedroom apartments in Palma de Mallorca rent between €1,100 and €1,800 per month ($1,190 to $1,945 USD), with significant variation depending on neighborhood and amenities.
More affordable 2-bedroom rents in Palma de Mallorca can be found in Son Ferriol and Sant Jordi, while premium areas like Bonanova, Son Vida, and Portixol command the highest prices.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in Palma de Mallorca.
What's the average rent per square meter in Palma de Mallorca as of 2026?
As of early 2026, the average rent per square meter in Palma de Mallorca is approximately €18.70 per month (about $20.20 USD or €18.70 EUR).
Across different neighborhoods in Palma de Mallorca, rent per square meter ranges from around €14 in outer areas like Son Ferriol to over €22 in premium zones like Portixol and Bonanova.
Compared to other major Spanish cities, Palma de Mallorca's rent per square meter sits above Madrid's average and well above most mainland cities, reflecting the island's limited supply and high demand.
Properties in Palma de Mallorca that push above the average rent per square meter typically have sea views, terraces, air conditioning, or are located in historic buildings with character.
How much have rents changed year-over-year in Palma de Mallorca in 2026?
As of early 2026, rents in Palma de Mallorca have increased by approximately 6% compared to January 2025, with the actual figure falling somewhere between 5% and 8% depending on the source.
The main drivers behind this rent growth in Palma de Mallorca include limited housing supply, strong demand from both locals and international renters, and continued migration to the island for work and lifestyle reasons.
This year's rent increase in Palma de Mallorca continues a multi-year upward trend, though the pace has stabilized slightly compared to the double-digit jumps seen in some earlier post-pandemic years.
What's the outlook for rent growth in Palma de Mallorca in 2026?
As of early 2026, rents in Palma de Mallorca are projected to grow between 4% and 7% over the course of the year, with the city likely landing toward the upper half of that range due to persistent supply constraints.
Key factors influencing rent growth in Palma de Mallorca this year include steady employment growth, continued migration to the Balearic Islands, relatively high interest rates limiting home purchases, and very little new rental housing coming onto the market.
Neighborhoods in Palma de Mallorca expected to see the strongest rent growth include Santa Catalina, Portixol, and the areas around the Old Town, where demand consistently outstrips supply.
Potential risks that could push Palma de Mallorca rent growth above or below projections include changes to Spain's rent control regulations, shifts in tourism policy, or an unexpected economic slowdown affecting employment.
We have made this infographic to give you a quick and clear snapshot of the property market in Spain. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which neighborhoods rent best in Palma de Mallorca as of 2026?
Which neighborhoods have the highest rents in Palma de Mallorca as of 2026?
As of early 2026, the three neighborhoods with the highest average rents in Palma de Mallorca are Son Vida (averaging over €25/m² or $27 USD), Bonanova-Sant Agustí (around €22/m² or $24 USD), and Portixol-Molinar (around €21/m² or $23 USD).
These high-rent neighborhoods in Palma de Mallorca command premium prices because of their sea views, proximity to the waterfront, prestigious reputation, and access to upscale amenities like marinas and international schools.
The typical tenants renting in these premium Palma de Mallorca neighborhoods are high-income expats, executives on relocation packages, and affluent retirees seeking Mediterranean lifestyle properties.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Palma de Mallorca.
Where do young professionals prefer to rent in Palma de Mallorca right now?
The top three neighborhoods where young professionals prefer to rent in Palma de Mallorca are Santa Catalina, El Terreno-Son Armadans, and Camp d'en Serralta-Bons Aires.
Young professionals in these Palma de Mallorca neighborhoods typically pay between €900 and €1,300 per month ($970 to $1,400 USD) for a 1-bedroom apartment, depending on the exact location and quality.
What draws young professionals to these Palma de Mallorca areas is the walkability, vibrant café and restaurant scene, proximity to coworking spaces, and easy access to the city center and waterfront.
By the way, you will find a detailed tenant analysis in our property pack covering the real estate market in Palma de Mallorca.
Where do families prefer to rent in Palma de Mallorca right now?
The top three neighborhoods where families prefer to rent in Palma de Mallorca are La Vileta-Son Rapinya, Son Dameto-Son Cotoner, and Secar de la Real.
Families renting 2-3 bedroom apartments in these Palma de Mallorca neighborhoods typically pay between €1,200 and €1,800 per month ($1,300 to $1,945 USD), offering more space for the money than central areas.
These family-friendly neighborhoods in Palma de Mallorca attract parents because of their quieter streets, access to parks and green spaces, availability of parking, and proximity to quality schools.
Top-rated schools near these Palma de Mallorca family neighborhoods include several international schools in the Son Rapinya area, as well as well-regarded public and concertado (semi-private) schools throughout these residential zones.
Which areas near transit or universities rent faster in Palma de Mallorca in 2026?
As of early 2026, the three areas near transit hubs or universities that rent fastest in Palma de Mallorca are Bons Aires (near the Intermodal station), Pere Garau (central with excellent bus connections), and Son Rapinya-Secar de la Real (near the University of the Balearic Islands).
Properties in these high-demand Palma de Mallorca areas typically stay listed for just 10 to 15 days, compared to 20 to 25 days or more in less connected neighborhoods.
The rent premium for properties within walking distance of transit or the university in Palma de Mallorca runs about €50 to €100 per month ($55 to $110 USD) above comparable units farther from these conveniences.
Which neighborhoods are most popular with expats in Palma de Mallorca right now?
The top three neighborhoods most popular with expats in Palma de Mallorca are Portixol-Molinar, Santa Catalina, and Bonanova-Sant Agustí.
Expats renting in these Palma de Mallorca neighborhoods typically pay between €1,200 and €2,000 per month ($1,300 to $2,160 USD) for a well-located 1 or 2-bedroom apartment.
These neighborhoods attract expats to Palma de Mallorca because of their international atmosphere, English-friendly services, waterfront access, trendy restaurants, and proximity to international schools.
The expat communities most represented in these Palma de Mallorca neighborhoods include Germans, British, Scandinavians (especially Swedes and Danes), and increasingly, remote workers from across the EU and North America.
And if you are also an expat, you may want to read our exhaustive guide for expats in Palma de Mallorca.
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Who rents, and what do tenants want in Palma de Mallorca right now?
What tenant profiles dominate rentals in Palma de Mallorca?
The top three tenant profiles dominating the rental market in Palma de Mallorca are local working households priced out of buying, international expats and remote workers, and seasonal or mid-term renters linked to the tourism industry.
Local working households make up roughly 45% of Palma de Mallorca's rental demand, expats account for about 30%, and seasonal or mid-term renters represent approximately 25%.
Local households in Palma de Mallorca typically seek 2-bedroom apartments in residential neighborhoods, expats often want furnished 1-2 bedroom units in central or coastal areas, and seasonal renters usually look for smaller furnished studios or 1-bedrooms.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Palma de Mallorca.
Do tenants prefer furnished or unfurnished in Palma de Mallorca?
In Palma de Mallorca, approximately 55% of tenants prefer furnished rentals while 45% prefer unfurnished, though this split varies significantly by neighborhood and tenant type.
Furnished apartments in Palma de Mallorca typically command a rent premium of €100 to €150 per month ($110 to $165 USD) compared to equivalent unfurnished units.
Tenant profiles that strongly prefer furnished rentals in Palma de Mallorca include expats, seasonal workers, digital nomads, and anyone planning to stay for less than two years.
Which amenities increase rent the most in Palma de Mallorca?
The top five amenities that increase rent the most in Palma de Mallorca are air conditioning, a private terrace or balcony, parking, an elevator in older buildings, and sea views or waterfront proximity.
In Palma de Mallorca, air conditioning adds roughly €50 to €75 per month ($55 to $80 USD), a terrace adds €75 to €125 ($80 to $135 USD), parking adds €75 to €100 ($80 to $110 USD), an elevator adds €50 to €75 ($55 to $80 USD), and sea views can add €150 or more ($160+ USD).
In our property pack covering the real estate market in Palma de Mallorca, we cover what are the best investments a landlord can make.
What renovations get the best ROI for rentals in Palma de Mallorca?
The top five renovations with the best ROI for rental properties in Palma de Mallorca are installing or upgrading air conditioning, modernizing the kitchen, refreshing the bathroom, improving windows and shading, and creating a dedicated work-from-home space.
In Palma de Mallorca, air conditioning installation costs €1,500 to €3,000 ($1,620 to $3,240 USD) and can boost rent by €50 to €75 monthly; a kitchen update costs €3,000 to €8,000 ($3,240 to $8,640 USD) and adds €75 to €125 monthly; bathroom refresh costs €2,000 to €5,000 ($2,160 to $5,400 USD) and adds €50 to €100 monthly.
Renovations that tend to have poor ROI for landlords in Palma de Mallorca include luxury finishes that exceed neighborhood standards, swimming pool installations in apartments, and overly personalized design choices that limit tenant appeal.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Spain versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
How strong is rental demand in Palma de Mallorca as of 2026?
What's the vacancy rate for rentals in Palma de Mallorca as of 2026?
As of early 2026, the estimated vacancy rate for long-term rental properties in Palma de Mallorca is between 2% and 4%, indicating a very tight market where available units get snapped up quickly.
Vacancy rates in Palma de Mallorca vary by neighborhood, ranging from under 2% in high-demand areas like Santa Catalina and Portixol to around 5% in outer suburbs like Son Ferriol.
The current vacancy rate in Palma de Mallorca is well below historical norms, reflecting years of rising demand, limited new construction, and competition from short-term rentals reducing the long-term housing stock.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Palma de Mallorca.
How many days do rentals stay listed in Palma de Mallorca as of 2026?
As of early 2026, rentals in Palma de Mallorca stay listed for an average of 15 to 20 days before being rented, with well-priced properties in prime locations often gone within a week.
Days on market in Palma de Mallorca range from under 10 days for desirable apartments in Santa Catalina or Portixol to 30 days or more for overpriced or poorly located units in outer neighborhoods.
Compared to one year ago, the average days-on-market in Palma de Mallorca has decreased slightly, reflecting continued tightening of the rental market as demand outpaces new supply.
Which months have peak tenant demand in Palma de Mallorca?
Peak tenant demand in Palma de Mallorca occurs during late August and September, with a secondary peak in May and June driven by seasonal hiring in the tourism sector.
The main factors driving seasonal demand in Palma de Mallorca include the academic year starting in September, seasonal tourism job cycles, relocations tied to the public sector, and the influx of summer workers who stay on.
The months with the lowest tenant demand in Palma de Mallorca are typically November through February, when tourism slows, seasonal contracts end, and fewer people relocate during the holiday period.
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What will my monthly costs be in Palma de Mallorca as of 2026?
What property taxes should landlords expect in Palma de Mallorca as of 2026?
As of early 2026, landlords in Palma de Mallorca should expect to pay annual property taxes (IBI) of approximately €500 to €1,000 per year ($540 to $1,080 USD or roughly €40 to €85 per month) for a typical apartment.
Property taxes in Palma de Mallorca range from around €400 per year for smaller units with low cadastral values to over €1,500 per year ($430 to $1,620 USD) for larger or better-located properties.
Property taxes in Palma de Mallorca are calculated by multiplying the cadastral value (valor catastral) by the municipal tax rate set by the Ajuntament de Palma, with rates varying by property type and zone.
Please note that, in our property pack covering the real estate market in Palma de Mallorca, we cover what exemptions or deductions may be available to reduce property taxes for landlords.
What utilities do landlords often pay in Palma de Mallorca right now?
In Palma de Mallorca, landlords most commonly pay the comunidad fee (building community charges), and in some cases cover water bills when the building has shared metering, plus internet for furnished mid-term rentals.
Typical monthly costs landlords pay in Palma de Mallorca include €50 to €150 per month ($55 to $165 USD) for comunidad fees, €20 to €40 ($22 to $43 USD) for water if included, and €30 to €50 ($32 to $55 USD) for internet if provided.
The common practice in Palma de Mallorca is for tenants to pay their own electricity and gas directly, while landlords handle comunidad and often water; furnished short-to-mid-term rentals may include more utilities to attract tenants.
How is rental income taxed in Palma de Mallorca as of 2026?
As of early 2026, rental income in Palma de Mallorca is taxed as part of your IRPF (personal income tax), with net rental income added to your general taxable base and taxed at marginal rates ranging from 19% to 47% depending on your total income.
The main deductions landlords can claim against rental income in Palma de Mallorca include repairs and maintenance, mortgage interest, property insurance, IBI taxes, comunidad fees, depreciation (amortization), and professional services like property management.
A common tax mistake specific to landlords in Palma de Mallorca is confusing the IRAV rent update cap (which limits annual increases on existing contracts) with the ability to set market rent on new leases, and failing to properly document the contract date to qualify for the correct rental income reduction.
We cover these mistakes, among others, in our list of risks and pitfalls people face when buying property in Palma de Mallorca.
We made this infographic to show you how property prices in Spain compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Palma de Mallorca, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| idealista | It's one of Spain's biggest property portals and publishes a consistent, city-level rent index with a stated methodology. | We used it as the main rent per square meter anchor for Palma de Mallorca and for named district comparisons. We also used its year-over-year change as a reality check against other indexes. |
| Fotocasa | It's a major Spanish portal with a long-running index that reports Palma de Mallorca metrics in a standardized way. | We used it as a second independent benchmark for Palma de Mallorca's current rent per square meter. We triangulated it with idealista to produce a single confident January 2026 estimate. |
| Banco de España | It's Spain's central bank and it explicitly documents which housing and rent data sources it monitors. | We used it to cross-check that the private-sector series we cite are also monitored in official policy dashboards. We used it to frame why Palma de Mallorca's rent pressure is consistent with broader supply-demand constraints. |
| MIVAU SERPAVI explainer | It's the Spanish housing ministry explaining an official rent reference system built from tax and administrative data. | We used it to explain what the official rent reference is and what it can and cannot tell you. We used it as the official-methodology counterweight to portal asking-price indexes. |
| MIVAU SERPAVI portal | It's the government's live portal for the rent reference ranges. | We used it to support how landlords and tenants can sanity-check a specific home's rent range by location and features. We used it to ground the market versus regulated reference discussion for 2026. |
| INE IRAV dataset | It's Spain's national statistics institute publishing the official index used to cap rent updates for relevant contracts. | We used it to quantify the permitted annual update limit around late 2025. We used it to explain why contract renewal increases can differ from market asking rents. |
| BOE IRAV legal text | It's the official state gazette, so it's the primary source for the rule itself. | We used it to describe in plain language how IRAV is calculated. We used it to keep the legal and tax discussion verifiable and not based on hearsay. |
| Agencia Tributaria deductible expenses | It's Spain's tax authority explaining exactly what landlords can deduct. | We used it to list the landlord expense categories that matter most in practice. We used it to support the realistic net income discussion for 2026. |
| Agencia Tributaria rental reduction | It's the official rulebook page for the IRPF rental-income reduction. | We used it to explain the headline reduction and why the contract date matters. We used it to keep the rental income taxed section precise and checkable. |
| Ajuntament de Palma IBI page | It's the city's official guidance on how Palma de Mallorca's property tax is calculated. | We used it to explain the mechanics of cadastral value times municipal rate in plain terms. We used it to anchor the monthly costs section in local reality. |
| Ajuntament de Palma ordinance hub | It's the city's official gateway to the current ordinances and rules. | We used it as the reference point for where landlords can verify current-year municipal tax rates and fees. We used it to keep anything Palma de Mallorca-specific traceable to the city. |
| Eurostat rents and house prices | It's the EU's statistical authority summarizing comparable rent and price trends across countries. | We used it to benchmark Spain and the Balearics against the broader EU rent environment. We used it to support the outlook section without relying only on portals. |
| Eurostat electricity prices | It's an EU-level official source for household energy price levels. | We used it to ground utility-cost expectations with an official reference point. We used it to sanity-check monthly electricity assumptions. |
| BBVA Research housing outlook | It's a major bank research unit publishing a structured housing outlook with macro drivers into 2026. | We used it to frame 2026 demand drivers like employment, rates, and migration, plus supply constraints. We used it to support a concrete rent-growth range for 2026 instead of vague speculation. |
| El País rental pressure article | It's a leading national newspaper summarizing market seasonality with reporting from agencies and portals. | We used it to support the peak months pattern of late summer and September that also shows up in Palma de Mallorca. We used it as a narrative cross-check, not as the core numeric rent source. |
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