Rental Market Trends: Stabilization and Challenges in the Balearics
The 2025 rental barometer, compiled nationwide by the Rental Observatory, concludes that rents, including those of the Balearics, stabilised over the second half of last year. This stabilization is a significant development, as it indicates a potential shift in the market dynamics.
Market Analysis and Forecasts
The report from the Safe Rental Foundation states: “The market has reached a turning point where prices have stopped rising at the rate of previous years, not due to increased supply, but because tenants are unable to afford higher rents.” This assessment suggests that the rental market is entering 2026 immersed in “a dynamic of change”. Forecasts point to further moderation in the rate of price increases in the most “saturated” markets, such as the Balearics.
In 2025, the report notes, the average increase in Spain was 5.9%. This compares with 11.3% in 2024, indicating a significant slowdown in rent growth. The Balearics, in particular, have experienced a 2.8% increase in average rent over the past year, with an average rent of €1,643, making it one of the most expensive regions.
Challenges and Structural Factors
The report highlights the mismatch between supply and demand and the scarcity of available rental housing as key factors contributing to high price levels, making access to housing difficult in Spain. In the most stressed areas, tenants are already dedicating almost half of their income to rent. Structural factors, such as the inability to afford homeownership and the rise of single-person households, continue to contribute to the scarcity of supply.
Despite the stabilisation of prices, “the scarcity of supply remains the cornerstone of the problem”. This stabilisation, linked to the limits of spending power, had been anticipated months ago by the Balearic real estate sector. José Miguel Artieda, president of the API association of estate agents, noted that there was a certain “saturation” in the rental market, which he attributed to the fact that tenants “can’t afford any price”.
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