The president of the API association of estate agents in the Balearics, José Miguel Artieda, says increases in rents in Mallorca have slowed down but stresses that rents won't be going down.
He points to a trend since the middle of last year. "We have been observing a slowdown in rent increases. It is no longer a temporary situation."
In the specific case of Palma, he explains: "Price adjustments are taking place; not everything is shooting up anymore, nor is everything the same price. The rental market is now starting to stabilise, and that may give the impression of lower prices in some areas.
"We've reached the limit of tenants' ability to pay; in other words, they can no longer afford higher rents." In Palma and certain other municipalities, e.g. Calvia, rents are €1,500 per month or more, prices which, in many cases, exceed net salaries.
Regarding the Balearic Government's Safe Rental programme, which offers rental properties at a set price in exchange for guarantees of payment to landlords, Artieda believes it has not had an impact on curbing rents. "I'd like to say yes, but I don't think so, though perhaps the awareness campaign has influenced landlords not to raise prices."
Artieda's observations are in keeping with the findings of the 2025 rental barometer, compiled nationwide by the Rental Observatory, which concluded that rents, including those of the Balearics, had stabilised over the second half of last year.