The figures are well below Spain’s national averages of 7.2% for entire properties and 7.8% for room rentals, underlining the challenges facing investors in one of the country’s most expensive housing markets. Despite strong demand, high property prices continue to weigh on rental yields.
The study also found that Palma is the third most expensive provincial capital in Spain for room rentals. Tenants pay an average of €617 per month for a room, with only Barcelona (€646) and Madrid (€622) recording higher prices.
That combination of high rental costs and comparatively modest returns presents a difficult balancing act for both landlords and renters. While tenants face some of the highest room rental prices in the country, property owners are seeing lower profitability than in many other Spanish cities.
Ferran Font, director of studies at pisos.com, said renting properties by the room can help landlords reduce risk. “If a room becomes vacant, the others continue to generate income, something that doesn’t happen when the entire property is let to a single tenant,” he said, arguing that the model offers greater financial resilience in an uncertain market.
