Madrid vs Mallorca: which is better for Airbnb investment? (2026)

Bottom line

Madrid edges ahead of Mallorca on higher occupancy (36% vs 30%).

Head-to-head metrics

	Madrid	Mallorca
Median occupancy	36%	30%
Median daily rate	£94	£205
Median RevPAR	£27	£29
Active listings	16,015	10,400
YoY occupancy	—	—
YoY daily rate	—	—
Regulation risk	—	—
Annual night cap	None	None
License required	No	No

Full analysis: Madrid vs Mallorca

Madrid finishes clearly ahead of Mallorca on our composite of occupancy, revenue per available night and regulation risk — and it is the calendar rather than the price tag doing the work. Madrid's listings run at 36% occupancy against 30% in Mallorca, worth 6 extra points of booked calendar every year. Madrid is the deeper market at 16,015 active listings against 10,400, which usually means better comparables going in and a wider buyer pool coming out. Those gaps are wide enough to survive a normal year's variance.

The two markets reach their revenue by different routes, which is what makes this pairing worth reading rather than just tabulating. Mallorca is the rate market: £205 a night against £94, some 117.1% more, but it converts fewer of those nights at 30% occupancy. Madrid is the volume market, filling 36% of its calendar at a lower headline price. Revenue per available night settles it: £29 in Mallorca against £27. Rate is what you advertise; RevPAR is what you bank.

That verdict needs a caveat, because Mallorca is not simply the weaker market of the two. Mallorca commands 117.1% more per night, £205 against £94. Mallorca's calendar is the flatter of the two — 18.1 points between its best and worst month against 25.8 in Madrid — which makes debt service easier to underwrite. If your model leans on nightly rate rather than volume, the ordering above can reasonably flip.

Neither Madrid nor Mallorca currently has a verified short-term rental regulation record in our register, so the comparison above is a yield comparison only. Regulation is the single largest source of downside in this asset class — an unverified market is an unpriced risk, not an absent one.

The two calendars also behave differently. Madrid peaks in September at 71.3% and bottoms in February at 45.5%; Mallorca runs from 51.7% in October down to 33.6% in April. Mallorca is the steadier of the two at 18.1 points peak-to-trough against 25.8 — easier to underwrite against a mortgage — while Madrid concentrates its return into a shorter window and rewards operators who price the peak aggressively instead of holding a flat rate all year.

Who each suits, then. Madrid suits buyers who want a conventional, lightly regulated entry and whose economics survive high turnover — more bookings, more cleans, more guest contact per pound of revenue. Mallorca answers to the same regulatory profile, so the split between them is operational rather than legal: it is the market for an owner who can hold rate through the shoulder season rather than discounting to fill the calendar. Every figure above comes from the same Inside Airbnb snapshot pipeline on both sides, dated 2025-09, filtered to listings with at least one booking in the last twelve months. Occupancy medians are drawn from 7,469 active Madrid listings and 7,915 in Mallorca.

Frequently asked questions

Is Madrid or Mallorca better for Airbnb investment?

Madrid, on the data we track. It leads on higher occupancy (36% vs 30%), a deeper market (16,015 vs 10,400 active listings), and a lower price point (£94 a night vs £205). Mallorca is not the weak side of this pair, though — it wins on a higher nightly rate (£205 vs £94).

Which has higher occupancy, Madrid or Mallorca?

Madrid, at 36% median occupancy against 30% in Mallorca — a gap of 6 points. That is a real but modest edge; a well-run listing in Mallorca can close most of it.

Which has higher nightly rates, Madrid or Mallorca?

Mallorca, at £205 a night against £94 in Madrid — roughly 117.1% more. Revenue per available night agrees rather than contradicts: £29 in Mallorca against £27, so the rate premium survives contact with the occupancy figures.

Which is the bigger Airbnb market, Madrid or Mallorca?

Madrid, with 16,015 active listings against 10,400 in Mallorca. Size cuts both ways: a deep market gives you comparables, contractors and an exit, while a thinner one means fewer near-identical rivals competing for the same search results.

How much can you earn from an Airbnb in Madrid vs Mallorca?

Mallorca earns more: roughly £10,710 a year for a median listing against £9,792 in Madrid. Those are gross booking revenues before cleaning, management, platform fees, furnishing amortisation and tax — budget for a meaningful share of them, and note that a median listing is a median operator, not a good one.

What is the best time of year to rent out an Airbnb in Madrid or Mallorca?

Madrid peaks in September at 71.3% occupancy and troughs in February at 45.5%; Mallorca peaks in October at 51.7% and troughs in April at 33.6%. Because the peaks fall in different months, the two markets are partly complementary — a portfolio holding one of each has a flatter combined calendar than either alone.

Go deeper on each city

Market guide

Airbnb in Madrid →

Occupancy, ADR, neighborhoods, regulation

Market guide

Airbnb in Mallorca →

Occupancy, ADR, neighborhoods, regulation

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