Holidays in a holiday home in Mallorca are becoming ever more popular and more and more owners are renting their properties to tourists during the times the house would normally be standing empty. Holiday properties are also becoming more popular as investments as the returns from holiday renting can be very attractive.
How much, however, can be earned with the house in Mallorca? The Steinbeis Institute Center for Real Estate Studies (CRES) which has been researching the holiday real estate market in Mallorca for some years has now, on behalf of the holiday renting company Porta Holiday, begun to examine the subject of holiday renting.
Around 2.300 online offers from the largest holiday rental companies in Mallorca such as Porta Holiday, Fincallorca and others such as the booking portal Airbnb were examined with reference to location, facilities, rate of occupancy and price. The scientists determined an average, island-wide price of around 51€ per person per night for the high season July to September.
The data was based on offers with an occupancy of four to ten persons which means that holiday guests pay on average at least 200€ per night for their holiday accommodation in Mallorca. Those not bound by official holiday times and/or love the quiet winter months are rewarded with hefty discounts. The months of November to February is the so-called off-season, when prices can be a good 40% under those of the summer months.
Airbnb not cheaper with the final price
The comparison between the international Airbnb, which mainly presents private offers, and the classic agencies is interesting.
”At first glance the Airbnb offers are between 10 and 15 % below those of the agencies, but the actual cost turns out to be more or less the same as Airbnb charge a booking fee of between 5 and 15% which compensates for the initial difference. The prices of the renting agencies, however, are end prices without further costs”
determines study director Prof. Wölfle. Not taken into consideration were the costs of final cleaning and electricity consumption.
As with the real estate prices the south-west is, with just under 59€, the most expensive region in Mallorca although the similarities end there. The most densely built-up area on the island represents only 2.6% of the holiday homes offered in Mallorca.
<img class=”wp-image-1347 size-full” src=”https://www.portaholiday.de/blog/uploads/AngebotFerienvermietungNach-Regionen_web-1.jpg” alt=”” width=”600″ height=”312″ /> More than half of the properties on offer are in the northern regions of Mallorca.
This information does not surprise Porta Holiday MD Ralf Spielvogel:
”The classic holiday home vacationer in Mallorca is looking for the typical Mallorcan finca standing on large grounds in the countryside, and this is not easy to find in the south-west. Added to that the high purchase prices reduce the amount of potential return. In the north and north-east, however, real estate prices are more favourable and there is a wider range of properties to choose from for holiday rentals. Both these regions are very attractive for capital investors from the point of view of return.”
Sea views – more expensive
Holiday homes with sea views also bring a higher income in holiday letting – in the luxury segment the premium for the coveted views of the Mediterranean bring just under 30%, and over all categories still 13% on average. Those owners, however, who do without a pool must reckon with discounts of up to 21%. With simply-equipped holiday homes the microlocation plays a decisive role – if the property is located on a busy street or in a lively district the discount is, on average, around 26%, and over all categories still reaches 10%. Investing in furniture can also be worthwhile as the premium can reach around 14%. Internet, however, should be standard equipment and according to the study does not justify a premium.
