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When subsidies become a bargaining chip: Madrid, Mallorca and the puzzle of rents

Palma’s Old Town and the Housing Pressure in Mallorca

Palma’s old town shows how high demand and limited housing shape Mallorca’s rent crisis.

Published: April 23, 2026
When subsidies become a bargaining chip: Madrid, Mallorca and the puzzle of rents

Answer

Why is Palma's old town part of the housing debate?

Palma’s old town reflects the wider housing pressure on the island: central locations are attractive, expensive, and often contested. People working in the city can struggle to find long-term rentals there because demand is high and supply is limited. That makes the area a clear example of Mallorca’s broader housing problem.

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