Hosts make a fortune renting to tourists in Palma

Palma tourist rental.

Despite the ban on tourist rentals in multi-family homes in Palma, there are more than 300 properties offered for this summer on Airbnb and they are not cheap either. The average price is 250 euros a night and there are properties spread all over the city, including in Nou Llevant and Son Gotleu.

But there is a significant shortage of long-term rentals in Palma and the prices are so extortionate that they make seasonal workers think twice about coming to Mallorca.

At an average price of up to 350 euros per nighthosts can earn upwards of $10,000 a month from Airbnb rentals if they’re full, so it’s no wonder they’d rather rent to tourists than offer their property to long-term tenants.

“Despite the spectacular increase in supply in recent weeks, tourist rentals in apartment buildings are forbidden in Palma and obtaining a new tourist rental license is impossible”, warns the general manager of Habitatge, Josep Maria Rigo.

“In Palma, we were very quick to establish rules and tourist rentals in multi-family buildings were banned,” added town planning official Joan Riera, who pointed out that Barcelona took longer to impose restrictions and is now experiencing a affordable housing crisis.

The new General Plan will be even stricter on tourist rentals.

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