Rentals in Mallorca

Holiday rentals and legal developments

In recent years, legislation introduced to regulate holiday rentals has provided greater legal clarity. After a temporary halt in the distribution of licences, it once again became possible to acquire holiday rental licences under specific conditions. These include compliance with local government guidelines, the island council’s zoning plan, and regulations concerning guest accommodation. Notably, existing licences are protected under the current legal framework.

Long-term rentals in Mallorca

The amendment to the law has also had a beneficial effect on long-term rentals. More properties are now available for extended leases, which has helped to stabilise the previously rising rental prices. Supply and demand are gradually reaching a balance. According to Engel & Völkers, there has been a marked increase in interest from potential buyers and investors in rental properties. Long-term rentals are especially appealing to clients who wish to experience Mallorca before committing to a purchase.

Experts at Engel & Völkers note that foreign investors’ interest in properties with rental licences has continued to grow. This trend, visible in recent years, has been further accelerated by the impact of the pandemic. Engel & Völkers primarily offers these types of properties in the north and southwest regions of the island.

Pricing insights for long-term rentals

For long-term rentals, prices through Engel & Völkers vary depending on location, size, and amenities. Rental prices for houses typically range from €2,000 to €18,000 per month, while apartments are priced between €1,000 and €4,000 per month. The current rental market suggests that investors remain confident in Mallorca’s so-called “magic triangle” of real estate, offering security, liquidity, and attractive yields.