Rental prices in the Balearic Islands have surged at the start of 2024, continuing a sharp upward trend with a 17% year-on-year increase, following a 21% rise in 2023, according to real estate consultancy CBRE. This escalation is attributed to intensified investment activities, with funds purchasing buildings for subsequent rental, particularly spotlighting the Balearics’ return to having the highest proportion of rental housing in Spain at 37.4%. The shift from buying to renting, driven by the increasing difficulty of accessing housing, has notably affected prices. This trend is particularly pronounced in Ibiza and Palma, where high rental costs contribute to the regional average of 16.5 euros per square meter per month. The limited number of new builds, targeted at higher-income groups, compounds the issue, drawing significant investor interest to the lucrative rental market.
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