Mallorca is and remains an interesting location for rental properties – both for short-term and long-term rentals. Rental properties are ideal for getting to know the Mediterranean lifestyle and the island’s many advantages. Engel & Völkers Mallorca received a record number of enquiries in 2021 for both short-term and long-term rentals: in fact, the number of rental enquiries almost doubled in comparison to the previous year (2021: 3,186, 2020: 1,661).
New legislation introduced in 2017 regulating holiday rentals has provided more legal certainty. After a temporary cessation of the distribution of licences, it is now possible to acquire holiday rental licences under certain conditions as laid down in July 2018. These include, among other things, the local government requirements, the island council’s zoning plan and regulations on guest beds. Existing licences are protected.
The amendment to the law also had a positive effect on long-term rentals. More properties are once again being offered as long-term rentals, which has slowed down the constant price increases. Supply and demand are now approaching equilibrium. The interest from potential buyers and investors in rental properties has, according to information from Engel & Völkers, noticeably increased. Long-term rentals are particularly interesting for those clients who wishto experience the island prior to buying a property. The experts at Engel & Völkers estimate that foreign investors’ interest in buying properties with a rental licence in Mallorca has continued to rise. This trend was foreseeable in the previous years, but it has gained strength due to the impact of the pandemic. Engel & Völkers offers these types of properties mainly in the north and southwest of the island.
For long-term rental properties, the prices at Engel & Völkers in various regions depend on size, position and facilities, ranging between 2,000 and 18,000 euros per month for houses and between 1,000 and 4,000 euros for apartments. The rental property market indicates that investors still remain convinced of the “magic triangle” of real estate on Mallorca, offering the three points of security, liquidity and yield.
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