Has the holiday rental market displaced the residential and long-term rental market in the Balearic Islands? This is the question that a UIB study, which is still in its first phase but is expected to offer interesting conclusions and very precise data, aims to answer.

The study team, formed by Rafel Crespí, Eduard Alonso and José Javier Ramasco of IFISC, has a body of 289,000 ads collected between 2015 and 2021. “15% are for rentals; 37% for vacation rentals, that is, almost two out of every five, and 45% for sale and purchase,” Rafel Crespí, professor of Business Organization at the UIB, tells this newspaper. “We have them all geolocated,” he adds

“We are very interested in analyzing what really happened from the regulation of vacation rentals.”

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“We have purchased data from Idealista and Airbnb from 2015 to 2021. We have every apartment and every house that has been advertised on these platforms in the form of long-term rental, vacation rental and sale and purchase ads. With all this, we will analyze both the rental and purchase markets and their evolution over time, and we will be able to check if there is any impact of vacation rental on long term rental and sales, especially on their prices. And if from 2017, when there was the regulation of tourist rental, there was some kind of reversal,” he explains.

“With this study the legislator will be able to know if the resident expulsion effect that is talked about with the arrival of the vacation rental occurs or not. If it occurs more in this area, in this zip code, than in another. We will also be able to give the prices, the occupancy, the distances they are from the beaches or from Palma,” he explains.

That is to say, the study will also try to delimit the variables that determine that some areas are hotter than others in operations related to real estate.