Trying to find a property to rent in Palma is proving to a constant battle for many people and that is if they can afford it. Palma is the second city in Spain where competition for each rental property has increased the most, with 62 applicants per advertisement in the third quarter, 22% more than a year ago, according to a study published on Thursday by the real estate portal Idealista.
In the Balearics, each rental property advertisement published on this website received an average of 36 enquiries in the third quarter, 12% more than last year. Nationally, in the third quarter, rental property advertisements published on Idealista received an average of 35 contacts before being taken down, a figure that is 13% higher than that recorded in the same period in 2024.
The number of people applying for each advert has grown over the last 12 months in most Spanish capital cities. Among the large cities, the greatest increase in competition has been in Bilbao (49%), followed by Palma (22%) and Alicante (19%). Palma is the largest market where competition for housing is greatest, with 62 families per advertisement. It is followed by Barcelona (58), Madrid (46), Bilbao (42), Málaga (33) and Valencia (32).
By province, the highest demand is in Navarra with 76, followed by Álava with 71 and Barcelona with 63. According to Idealista, the number of families applying for each listing has grown in most Spanish capitals over the last 12 months. Bilbao and Palma are followed by Alicante (19%), Malaga (13%) and Seville (12%). Madrid has grown by 4%, Valencia by 3% and San Sebastian by 2%, while Barcelona is the only major market where competition has fallen, by 3%.
And for those looking for a rental, Sant Jaume is Palma’s wealthiest neighbourhood, according to the Tax Agency’s statistics on income tax filers by postcode, with figures corresponding to 2023. The inhabitants of this central neighbourhood have an annual income of €69,523, 8.2 per cent more than in 2022.
Their situation contrasts with that of El Arenal, which ranks at the bottom of the income ranking for the entire municipality, with just €25,607 per year. In other words, residents of El Arenal earn 63 per cent less than those of Sant Jaume, which represents a difference of €43,916 from one neighbourhood to another.
This statistic clearly shows the distribution of wealth in the municipality and how the gap between the highest and lowest strata of Palma society is widening. These statistics from the Tax Agency make distinctions according to postcode, with Sant Jaume’s being 07012, where only 3,280 income tax returns have been filed. It is followed in the ranking by Monti-Sion (07001), with €54,793, 3 per cent less than in 2022.
Son Dureta, where the centre of Sa Teulera is located, ranks third, with €47,928 per year, 3 per cent more. It is followed by Cala Major-El Terreno (€45,097), Centro Mercat (€43,578 and postcode 07002) and Centro Sant Jaume (postcode 07003 and €40,952). The centre is home to the highest incomes.
From sixth place onwards, incomes drop dramatically and are scattered throughout the municipality. It is followed by Son Rapinya (€40,713), Son Sardina (€39,317, which has seen an increase of 8.3 per cent), and Can Pastilla (€36,694), while El Fortí-Son Ximelis stands at €35,412.
The most notable increase in income, with a 14 per cent rise, is in Llevant (postcode 07199), which stands at €35,102 in the average income table for Palma. However, we are talking about averages, and Llevant is undergoing a demographic change that contrasts the two sides of Palma: the more modest inhabitants of the old Polígono de Llevant and the residents of the luxury urban developments of Nou Llevant, also known as Nou Portitxol, which would explain such a sharp percentage increase compared to 2022. At the bottom of the list are Cas Capiscol (€33,926), Es Portitxol (€33,375), Son Oliva (€33,146), Son Ferriol (€31,533), Pere Garau (€29,111), Coll d’en Rebassa (€29,022), Son Cladera (27,109), Son Canals (25,925) and, finally, El Arenal, with just €25,607.