Mallorca vs Palma: which is better for Airbnb investment?

Head-to-head metrics

Full analysis: Mallorca vs Palma

Scored on median occupancy, revenue per available night and regulation risk together, Mallorca finishes decisively ahead of Palma. Its strongest submarket, Deyá, clears £86 RevPAR on its own — city medians hide that kind of spread. That is not a rounding difference, and it compounds over a hold period.

A full rate-versus-occupancy read is not available for this pairing. Mallorca runs £205 a night at 30% occupancy, but the source snapshot for Palma ships without enough priced listings to publish a comparable median. We would rather leave that comparison blank than assert one built on a handful of listings.

That verdict needs a caveat, because Palma is not simply the weaker market of the two.

We hold a verified regulation record for only one side of this pairing. Palma applies no annual night cap, requires a licence, and treats letting as a change of use needing planning permission, on a banned risk rating. Mallorca should be read as unverified rather than unregulated: check the local authority's own register before you underwrite anything there.

Who each suits, then. Mallorca suits buyers who want a conventional, lightly regulated entry. Palma suits buyers who already hold compliant, grandfathered stock — not new entrants. Every figure above comes from the same Inside Airbnb snapshot pipeline on both sides, filtered to listings with at least one booking in the last twelve months.

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