Palma de Mallorca awaiting further legal developments. When they buy rental properties, they tend to choose houses for short- As a result of the new legislation and the restrictions term letting. The majority of short-term rental apart- on short-term rentals, there are now more long-term ments are in Port de Sóller. While there has not been rental properties on the market. The number has risen any noticeable increase in the number of rental proper- by almost 60 percent since last year. Long tenan- ties in western Mallorca, prices have risen by up to cies are also becoming the norm. The majority of 15,000 euros per month. In the lowest price segment tenants are Germans, Swiss and Scandinavians; they at Engel & Völkers rents are about 4,000 euros per usually stay in a property for a year. Engel & Völkers month. has obtained monthly rents ranging from just under 1,500 euros to around 3,500 euros. Mallorca North Palma Surroundings & Son Vida The north is a good location for both long-term and short-term holiday rentals, with the season running In Palma Surroundings & Son Vida, both houses and from Easter until October. Provided that all the apartments are available for long- necessary permissions are in term rent. The prices are among place, rental revenues are very the highest in Mallorca and thus in lucrative.Among purchasers in linewith the trend in prices on the A one-year tenancy the region, interest in properties property purchase market. Apart- is still the irst stepf for short-term letting has declined; ments can be rented for between towards your own customers are mainly looking 2,000 and 7,000 euros per month, propertyonMallorca. for properties suitable for long- while monthly rents for houses term letting. In some areas in the range from 7,000 to 15,000 euros. north, up to 25 percent more rental In the exclusive area around Son properties have come onto the Vida, rental prices are above the average for the island. market. Monthly rents for apartments are between 1,000 and 2,500 euros, while houses fetch between Mallorca Southwest 2,000 to 4,500 euros per month. In the southwest of the island the new legislation Mallorca Central has not yet affected the interest of buyers wanting to purchase properties suitable for renting out as holiday In the centre of the island average rents for apartments homes. They are specifically looking for complete are between 1,200 and 3,000 euros per month, while properties that are licensed for letting. Recently, houses in this region cost 2,000 to 9,000 euros. During roughly 15 percent more long-term rental proper- the past year, an increase in demand for rented apart- ties have come on the market with Engel & Völkers. ments has been particularly noticeable in the districts Portals and Santa Ponsa are the most sought-after around Santa Maria – areas that are well connected locations for families on account of their good infra- to the airport and to the island’s capital. In the Inca structure and the international schools. Apartments region, a trend towards long-term rentals with a stable can be rented for between 1,300 and 5,000 euros return on investment is also evident. per month; houses start at about 2,500 euros, with the most expensive costing up to 15,000 euros per Mallorca South month. The most popular rental properties in the south are Mallorca West villas on the sea and fincas in the interior around Lluc- major. Apartments are offered for between 1,200 and In this region the demand is mainly for high-quality 3,000 euros per month, while average rents for houses fincas for holiday lets in areas such as Valldemossa, in the south range from 2,000 to 6,000 euros. In recent Sóller and Port de Sóller. The buyers of typical holiday years the south has developed into a very strong region properties are currently exercising some restraint and with great potential.