Advancing Renovations Instead of Waiting: Government Funds Refurbs — Is That Enough for More Affordable Rents in Mallorca?

Advance payment, renovate, rent out — the concept

On the streets of Palma you can already hear drills in old town apartments in the morning, accompanied by the distant screech of seagulls over the harbour. The Balearic government wants to act precisely here: with a new programme that fronts renovation costs for vacant apartments to motivate owners to return their properties to the rental market. The scheme is called "Alquiler seguro" and works as simply as it is pragmatic: the public sector pays upfront, owners commit in return to renting — costs are compensated later through rental income or repayments.

The key question

Is advance financing of renovations enough to ease the housing crisis in Mallorca? The answer depends on several factors: the number of units actually reactivated, the length of the rental obligation, the size of the subsidies and, not least, whether the measure addresses structural causes of the shortage or merely covers up symptoms.

What has happened so far — and where the catch is

So far only a few dozen apartments have been part of the programme — 48, to be exact. This scale contrasts with broader market pressures cited in Payday 2026: Why Many Renters in Mallorca Have Reason to Be Afraid.

More importantly: many of the vacant apartments are in neighbourhoods where owners hope for higher returns through holiday rentals. If the rules are not tightly linked to long-term renting and rent levels, apartments could quickly flow back into the holiday market after the obligation expires. This dynamic is explained in Why long-term rentals in Mallorca are dwindling — and what could help.

It also remains unclear how the government will ensure that the advance payments do not come to nothing with hard-to-sell units or get stuck in lengthy administrative processes. Bureaucratic delays, a lack of craftsmen in the off-season and owners who prefer to wait for the next tourist boom — these are real stumbling blocks you can feel every morning when walking past the Mercat de l’Olivar.

Aspects often overlooked

Three points receive surprisingly little public discussion: first, the question of the duration of the rental obligation. One year or five years makes a big difference for the effect on the rental market. Second, the rent level after renovation: will the apartments be offered at regulated prices or at market rates? The debate over subsidies is already public, see Rent Subsidies Under Scrutiny: Help — But Who Really Benefits?. Third, the role of municipalities — cities like Palma, Calvià or Manacor know their bottlenecks better than central authorities and could help in choosing targets and monitoring compliance.

Concrete opportunities

If the government combines measures smartly, the programme can have a quick impact: targeted incentives for apartments in neighbourhoods with high demand for long-term rents, coupled with mandatory minimum rental periods and transparency rules. Such measures could quickly provide affordable housing for hundreds of people — craftsmen from Llucmajor and Sant Jordi would also see more work again, and construction sites on Playa de Palma would be less seasonal.

Concrete improvement proposals

Some practical suggestions that could take hold on the island immediately:

1. Longer binding periods: At least three to five years minimum rental duration instead of short-term obligations.

2. Staggered repayment modalities: Larger subsidy shares for owners who commit to lower, more social rents.

3. Local cooperation: Involve municipalities and neighbourhood associations to distribute projects according to local priorities.

4. Transparency and monitoring: Public lists of subsidised apartments and regular inspections — so that funds do not vanish.

5. Combined measures: Link renovation grants with tax incentives and an expansion of social housing.

What this means for Mallorca's residents

For tenants the programme could bring relief — especially for young families, tourism workers and older island residents who have been pushed out of their neighbourhoods in recent years. But the effect depends on whether policy is strict enough to ensure that renovated apartments actually remain on the long-term rental market. Otherwise the well-intentioned advance payment will amount to little more than a nicely renovated window sill on the Paseo Marítimo.

The debate is open: loud, sometimes heated, with coffee in Santa Catalina and construction noise in Portixol. It would be a pity if the initiative were seen as just a drop in the ocean — with clear rules and strong local involvement it could become part of a broader solution. The island has the craftsmen, the ideas and the need — now it needs the political will to make this more than a short-term project.