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Mallorca in the Stranglehold of Speculation: When Apartments Become Financial Products

Why Palma Is Losing More Family Apartments

Investor demand in Palma is reducing the supply of family apartments and increasing pressure on local renters.

Published: April 23, 2026
Mallorca in the Stranglehold of Speculation: When Apartments Become Financial Products

Answer

Why is Palma losing family apartments to investors?

In Palma, smaller homes that once served local families are increasingly attractive to investors looking for higher returns or tourist-use potential. That changes the character of the market and can reduce the number of apartments available for residents who want to stay in the city. The result is more pressure on rents and fewer options for families.

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