Flames were coming from the top floor of the Residencia Fontsana, which is on the Avenida Joan Miró.
The cause and the extent of the fire are as yet unknown.
The emergency services evacuated residents and workers - 131 people in all - and there are no reports of any injuries.
Around a hundred members of emergency teams - firefighters, ambulances, police - attended the scene. The Palma Fire Brigade extinguished the fire by around 9pm. The building was being ventilated before residents were allowed to return.
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