Palma de Mallorca Property Prices, Rents & Rental Yields

About Palma de Mallorca

Palma de Mallorca pairs a historic Mediterranean old town with a working port, long seafront promenades, and easy access to the rest of Mallorca. For apartment investors, it blends city convenience with island appeal, while the built environment still reflects the capital’s layered character and coastal setting.

August 2026 points to a market that is still moving higher, but not without friction. The average sale price for apartments stands at €549,000, after rising 1.7% month over month and 1.9% year over year. The average price per square meter is €5,180, up 0.7% on the month and 5.7% over 12 months, which suggests that value growth is being felt across the pricing base rather than only at the headline level.

That is the key tension this month: prices are advancing, yet the rental side has remained steady. Average rent is unchanged at €2,000, leaving the estimated yield at 4.96%. For investors, August 2026 reads as a market where ownership costs are still edging up faster than rental income, so the income case depends more on selective entry than on broad rental uplift. In that context, Palma remains notable less for a dramatic swing than for a measured, persistent climb in apartment values.