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Housing shortage in Mallorca: Why even retirees are now leaving the island – and what can help

Housing Pressure in Palma’s City Centre

Rising rents and property prices are changing everyday life in central Palma and pushing out long-term residents.

Published: April 22, 2026
Housing shortage in Mallorca: Why even retirees are now leaving the island – and what can help

Answer

What is the situation like for housing in Palma’s city centre?

In central Palma, the housing pressure is visible in everyday life. Areas around places such as Mercat del Olivar or Passeig del Born reflect how rising prices and tighter supply are changing who can afford to stay. The result is not just a market issue, but a shift in the social life of the neighbourhoods.

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