The 2025 rental barometer, compiled nationwide by the Rental Observatory, concludes that rents, including those of the Balearics, stabilised over the second half of last year.
The report from the Safe Rental Foundation states: "The market has reached a turning point where prices have stopped rising at the rate of previous years, not due to increased supply, but because tenants are unable to afford higher rents." The rental market is entering 2026 immersed in "a dynamic of change".
Forecasts therefore point to further moderation in the rate of price increases in the most "saturated" markets, such as the Balearics. In 2025, the report notes, the average increase in Spain was 5.9%. This compares with 11.3% in 2024.
In the most stressed areas, tenants are already dedicating almost half of their income to rent. "The mismatch between supply and demand and the scarcity of available rental housing are behind the high price levels that make access to housing so difficult in Spain."
Despite the stabilisation of prices, "the scarcity of supply remains the cornerstone of the problem". "This moderation towards stabilisation should not be confused with a recovery." Structural factors continue to contribute to the scarcity, such as the inability to afford homeownership and the rise of single-person households.
This stabilisation, linked to the limits of spending power, had been anticipated months ago by the Balearic real estate sector. José Miguel Artieda, president of the API association of estate agents, said at the end of 2025 that there was a certain "saturation" in the rental market, which he attributed to the fact that tenants "can't afford any price".
Stabilisation or not, the report confirms that the Balearics are one of the most expensive regions, with an average rent of €1,643, representing a 2.8% increase over the past year. The highest prices are where there is most population and in areas with the most dynamic economies, including those where tourism is of significance.