Rental prices in Mallorca rise sharply after minimum contract term.

When the lease ends: suddenly a completely different price tag

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Breakfast on the balcony, the coffee maker gurgling, and on the radio news about rising rents – that has become everyday life here in Palma. Many tenants I spoke with report the same pattern: five years the contract runs, then it is renegotiated, and suddenly the rent is much higher.

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What many now have to pay

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Concrete figures you hear again and again: apartments that previously cost 800 to 900 euros are raised to 1,200 to 1,300 euros after the contract extension. That’s quickly 30 to 50 percent more. In neighborhoods like Santa Catalina or close to Passeig Mallorca, it looks on the paper next to the door like a sticker: "Unaffordable."

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Who is most affected

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This affects not only students. Especially hard hit are single parents, people with only one income, and retirees with small pensions. I met a mother at the market in El Olivar who said: "I had two shifts planned, but with the new price that is no longer enough." Some give up their apartment, some must sublet rooms, others move to peripheral areas or the countryside.

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Industry representatives warn that the consequence could be a weakening of the local middle class. Less household money means fewer restaurant visits, fewer purchases at the weekly market, and less money for tradespeople – everyday things that keep our neighborhoods alive.

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How landlords argue

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From a landlord's perspective, costs for investment, maintenance, and the tight real estate market are often cited. That sounds plausible, but it offers little relief for the person who turns the key in the morning. A seller at Plaça Major dryly remarked: "When rents rise, the money stays here on the island at very different places – or not at all."

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What helps now (and what doesn't)

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Some households try to earn extra income through subletting or move to smaller apartments outside Palma. Others search for cooperative models or municipal initiatives that promote affordable housing. In the short term, that hardly helps – in the long term it could make a difference if policy and municipalities react faster.

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In the end, it's people, not numbers. The discussion about rental contracts and terms is important, but we should not forget: behind every apartment door lies a story – families, neighbors, small shops. If rents keep climbing, many of these stories will have a different ending.

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I will continue to follow the topic and speak with people from the neighborhoods. If you have your own experience or tips, write to me. It often helps to talk to each other – and we’re happy to do so here, at a cafe, at the market, or in the stairwell.