The price of home rentals has plummeted for the first time in 42 months in the popular Spanish archipelago of the Balearic Islands. Real estate group Fotocasa saw a year-on-year decrease in prices of 0.8%. Separately, it recorded a monthly increase between March and April of 0.4%.
A similar price drop had not been witnessed since the COVID-19 pandemic in October 2021. The Balearics are the only region in the country in which the price of rent has decreased year on year, according to the Director of Studies and spokesperson for Fotocasa, María Matos.
Despite the price drop in the Balearics, the islands continue to be among the most expensive provinces in the whole of Spain.
In fact, the archipelago is third only to the capital, Madrid, where the price per square metre is €21.10 (£17.77), and Catalonia, where it is €19.01 (£16.01) per square metre.
“The Balearic Islands remain one of the expensive regions in Spain to rent a property, a position that reflects the strong pressure of demand on a very limited supply,” Fotocasa said.
Breaking down the Balearics specifically, Calvia, Majorca, which includes the popular resorts of Magaluf and Alcudia, is the region where the price of rent has fallen the most in the last year, by 5.5%, followed by Palma, with 1.2%.
Despite these positives, these two municipalities are among the most expensive in the archipelago. In Calvia, the price per square metre is €20.88 (£17.59), followed by Alcudia with €19.23 (£16.20).
Palma, Majorca’s capital, follows shortly behind with €17.86 (£15.04), with Mao (Mahon), the capital of Menorca, in fourth.
The falling prices year-on-year come weeks after protesters in dozens of cities took their anger at the lack of affordable housing to the streets. While the marches were focused on problems linked to accommodations, many anti-tourism protesters have blamed the high costs of homes and properties on mass tourism.