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Why the number of holiday rentals in the Balearic Islands is shrinking — and what Mallorca can do about it

How Holiday Rentals Affect Mallorca’s Housing Market

Reduced holiday rentals in Mallorca could ease pressure on the housing market if more homes return to long-term use.

Published: April 23, 2026
Why the number of holiday rentals in the Balearic Islands is shrinking — and what Mallorca can do about it

Answer

How does the holiday rental situation affect housing in Mallorca?

The effects on housing can be significant, especially if flats that were used for short stays return to the long-term market. That could help workers in tourism, construction and other sectors find somewhere to live. It may also influence rents in towns and cities where housing is already under pressure.

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