Buying a property to rent in Llucmajor offers a gross yield of 5.5%, the highest in the Balearics. However, the average yield in Mallorca remains below the national 5.7%, according to the latest study by Fotocasa.
The real estate market in the Balearics continues to cool the profitability for investors buying properties for rental purposes. The rising purchase prices, well above the increase in rents, reduce yields year after year. Nevertheless, Llucmajor consolidates itself as the most attractive municipality in the islands for this type of operation, with a 5.5% gross yield during the second quarter of 2026.
This is reflected in the study conducted by Fotocasa, whose Director of Studies, María Matos, highlights that the figure for Llucmajor surpasses that of Palma (4.4%) and Calvià (4%), the other two analysed municipalities in Mallorca. However, none of them reach the national average of 5.7%, which is eight tenths below the 6.5% recorded a year ago.
The decline in profitability in the Balearics is a trend that has persisted since 2016, when the average yield was 6.6%. In 2021, it stood at 4.8% and has now fallen to 4.2%. The main reason is that the purchase price of housing has risen more sharply than rents, forcing investors to make a larger initial outlay to achieve an increasingly tight return.
Despite this trend, residential demand on the island remains high, sustaining interest in the Balearic market, albeit with narrower margins. For local buyers, this situation poses an additional obstacle: the investment required to acquire a flat and rent it out is becoming increasingly high, and the timeframes for capital recovery are extending.
Across Spain, the average gross yield stood at 5.7% during the second quarter of 2026, eight tenths lower than the previous year. The Balearics ranks among the communities with the lowest yields, alongside Madrid, Andalusia, and the Basque Country. At the opposite end are Castilla-La Mancha (7.8%), Aragón (7.5%), Extremadura, and Castilla y León (both at 6.9%).
Within the islands, the most extreme case is Santa Eulària des Riu in Ibiza, which registers a yield of 3.3%, the second lowest in Spain, only behind San Sebastián (3.1%). This figure reflects the significant increase in purchase prices in the most pressured markets, where rental prices have not evolved at the same pace.
Outside the Balearics, the highest yields for housing investment are concentrated in markets where purchase prices remain relatively contained. El Ejido tops the national ranking with 12.2%, followed by Adra (12%), Santa Coloma de Gramanet (11.7%), and Miranda de Ebro (10.2%).
For the Mallorcan investor, the yield in Llucmajor represents a relative opportunity within a declining regional context. The municipality in the Llano de Mallorca combines still moderate purchase prices with sustained rental demand, making it the most profitable option in the islands, although still below the national average.
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