Palma de Mallorca Property Prices, Rents & Rental Yields

About Palma de Mallorca

Palma de Mallorca blends a historic old town, a working Mediterranean harbour and a long-established seaside lifestyle, making it one of the island’s most recognisable urban markets. Its apartment stock sits within a compact city setting, where coastal appeal and central convenience often overlap.

July 2026 shows the clearest signal in the asking side: apartment values continue to edge higher, even as rents hold steady month to month. The average sale price now stands at €540,000, while the average price per m2 is €5,140, both up 1.9% over the month. That monthly lift is modest, but it keeps the market moving in the same direction.

The tension for investors is that income has not yet accelerated at the same pace. Average rent remains €2,000, unchanged from the previous month, although it is up 2.6% year on year. By contrast, the average sale price is up 2.9% over the same period, and the average price per m2 has risen 5.8%. With a yield of 4.83%, the July 2026 picture points to a market where capital values are still firming faster than rental growth, which can tighten the margin between entry cost and income.