Balearic Islands has closed 2024 as the autonomous community where housing is less profitable, with 4.6%, which are 0.4 points less than 10 years ago (with 4.9% in 2014), according to a report by the real estate Fotocasa.
The average annual profitability in the Balearics is 0.7 points lower than in 2023, when it stood at 5.3 %, according to the study of‘The profitability of housing in Spain in 2024‘, based on the analysis of housing prices for sale and rent in December 2024 by the portal. The data also indicates that acquiring a property to put up for rent in December in the islands offers the lowest profitability since 2014, at 4.6 %. Investing in housing in the town of Manacor gives a return of over 6 % (compared to the 4.9 % average return in 2014, according to the analysis by municipality). Next come Llucmajor, with 5.5 %, Sant Josep with 4.7 %, Palma with 4.5 %, Mahón with 4.1 %, Calvià with 4 %, Pollença with 3.9 %, Ibiza with 3.3 % and Santa Eulària with 3 %. In Palma, profitability has dropped from 9.7 % in 2014 to 4.5 % in 2024. The situation in the Balearic Islands contrasts with what is happening in the rest of the country, according to the Director of Studies and spokesperson for Fotocasa, María Matos. She has indicated that in general terms the yield of buying a home and renting it is one of the highest in the historical series and almost two points higher than a decade ago.
In the rest of Spain
In 2024, the profitability of housing has increased in eleven communities and in eight of them the value is equal to or above the profitability of Spain, which is 6.7% on average. It rises especially in Catalonia (7.6 %), Region of Murcia (7.6 %), Comunitat Valenciana (7.3 %), Castilla y León (7.1 %), Aragón (7.1 %), Asturias (7.1 %), Castilla-La Mancha (7.1 %) and Navarra (6.8 %). Below the average profitability are the communities of Extremadura (6.6%), La Rioja (6.6%), Cantabria (6.6%), the Basque Country (6.1%), Galicia (6%), the Canary Islands (5.9%), Andalusia (5.8%), Madrid (5.8%) and the Balearic Islands (4.6%).
