Holiday homes rented long-term.

Holiday homes rented long-term. archive photo.

24-08-2020P. Pellicer

The Balearic Association of Real Estate Services, or ABSI says there’s been a “considerable increase” in the number of long-term rental properties on the market because of the coronavirus pandemic.

“During the last few months there's been more rental properties available at all ABSI partner Agencies and we now dedicate a significant part of our day to the management of this type of property,” said ABSI President, Antoni Gayà.

One of the reasons for the increase in long-term rentals is the fact that there are virtually no tourists looking for vacation rentals.

“We estimate that more than 30% of holiday properties have changed their use and up to 40% of holiday rentals in coastal areas of Majorca have been transferred to the long-term rental market,” says Gayà.

ABSI believes that this will continue for a while but not forever.

"It does have an expiration date because the owners who prefer lower profitability for now, will return to the tourist rental market when the pandemic situation stabilises."

Real estate companies say there hasn’t been a considerable drop in rental prices yet, but are expecting a fall in sale and rental prices in September.

"With all those short-term rental homes being made available as long-term rentals there will be more properties to choose from, so prices will undoubtedly fall," says Gayà.

Comments

The content of comment is the opinion of users and netizens and not of mallorcadailybulletin.com.

Comments contrary to laws, which are libellous, illegal or harmful to others are not permitted');

mallorcadailybulletin.com - reserves the right to remove any inappropriate comments.

Warning

Please remember that you are responsible for everything that you write and that data which are legally required can be made available to the relevant public authorities and courts; these data being name, email, IP of your computer as well as information accessible through the systems.

* Mandatory fields

Currently there are no comments.