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.