The municipalities of Palma, Manacor, and Llucmajor are the towns that attracted the most interest from tenants looking to rent in the Balearics during the third quarter of 2025. This is according to a study carried out by the real estate portal idealista on relative demand, which shows that more and more municipalities outside the capitals are attracting greater interest from those looking to rent.
In the case of the Balearics, Palma ranks 18th in Spain in terms of demand, with an average rent of €1,902 per month; Manacor ranks 28th (€1,525/month) and Llucmajor 56th (€2,237/month).
Next comes the city of Ibiza in 102nd place (€3,450/month), Santa Eulària in 120th (€4,158/month), Calvia in 121st —€3,057/month— and finally Sant Josep de Sa Talaia in 132nd place —€3,791/month.
In the Spanish ranking, 12 of the top 15 positions are occupied by cities on the outskirts of Barcelona and Madrid, with Leganés (€1,060/month), Móstoles (€1,040 euros/month, Hospitalet de Llobregat --1,211 euros/month-- and Terrassa --934 euros/month-- at the top. And, the price of resale housing rose again in October, reaching €2,081 per square metre, which represents an increase of 7.6% compared to the same month last year and 0.5% compared to September, according to data from Hogaria.net.
The real estate portal has highlighted that the “immediate cause” of this rise is “clear,” arguing that “there is more demand than supply” and that “construction is unable to keep pace.” Hogaria.net has pointed out that, “for years,” the development of new housing has slowed down due to high land costs, urban planning bureaucracy, and the rising cost of materials. In addition, it has noted that licenses “take months or even years,” while the land available in large cities “is running out or remains in the hands of a few owners.”
“The solution inevitably involves increasing supply, but not just any kind. Spain needs affordable housing, not more luxury developments. Tax incentives for social housing, the renovation of underused buildings, and real public-private collaboration (not just in discourse) are urgent steps if we want to prevent the market from continuing to expel the urban middle classes,” the website states.
Hogaria.net’s analysis shows that prices rose in 44 provinces during October. The Balearics (€4,757), Madrid (€3,944), and Guipúzcoa (€3,912) topped the price ranking, followed by Málaga (€3,770) and Barcelona (€3,598). In contrast, the data shows that prices were “three or four times lower” in provinces such as Ciudad Real (€1,160) and Palencia (€1,219). For Hogaria.net, this is not just a matter of regional differences, but rather “a socioeconomic divide.”
It has indicated that while in Madrid and Barcelona, luxury districts—such as Salamanca, Chamberí, Sarrià-Sant Gervasi, and Eixample—exceed €6,000 per square meter, the rest of the country “watches from afar as the market becomes increasingly disconnected from real wages. Investment funds, individuals with savings capacity, and even foreigners are buying homes not to live in, but to protect capital. At the same time, local authorities are doing little to address the issue of empty homes or regulate the use of apartments for tourism.
"One possible response—albeit a politically uncomfortable one—would be to tax idle housing and limit tourist use in areas under pressure, measures that are already being applied in other European cities with some success,” said Hogaria.net. The real estate portal also pointed out that the rental market is “the other major driver of real estate inflation. With rents skyrocketing and a changing regulatory framework, many tenants are choosing to buy before prices rise further. Paradoxically, this decision fuels the vicious circle of price increases,” said Hogaria.net.