Luxury overflows from El Born and colonizes new streets in Palma

PalmPalma continues to consolidate itself as one of the main luxury commercial destinations in the Mediterranean, but the success of the traditional central axes is causing a side effect: the saturation of the Born promenade and Sant Miquel street. This situation is driving new emerging commercial spaces, especially in Jaume III, Sant Nicolau, and Colom street, which are gaining prominence among international brands and investors.

This is indicated by the report Retail 2025 prepared by Gesvalt and aRetail, which highlights that the Balearic capital is experiencing a moment of strong commercial dynamism thanks to population growth, the consolidation of 'premium' tourism, and the increase in consumption.

According to the study, El Born continues to be the great showcase for luxury in Palma, with brands such as Louis Vuitton, Max Mara, Hugo Boss or Sandro. However, the availability of premises is practically nil: currently there is no free space left out of the 42 existing establishments. This lack of supply forces many brands to look for alternatives in nearby streets, especially in Jaime III and its surroundings.

The report indicates that El Born is clearly dominated by businesses linked to fashion and luxury, which represent 57% of commercial activity. Retail (17%) and services (14%) also carry weight. Regarding the mass consumption or mass market segment, the main axis continues to be San Miguel and Marqués de Palmer square. But the situation is similar: there is only one available unit out of the 104 existing ones. In fact, according to the analysis, many contracts are closed before the previous tenant vacates the premises.

In this area, fashion accounts for 62% of the commercial offering, followed by services (14%) and retail (11%). Faced with this real estate and commercial pressure, San Nicolás and Colón streets are also beginning to attract the interest of new international operators and investors, who are looking for spaces with more availability in the center of Palma.

The report also highlights the growing investor interest that the city is generating. According to the study, El Born and San Miguel are currently the preferred areas for national investor families, with returns already around 4.5%. The authors of the analysis believe that the drop in interest rates could favor new commercial real estate transactions that had been stalled until now.

Price differences between the main commercial axes also continue to widen. On Paseo del Born, commercial rents range between 65 and 220 euros per square meter, while on San Miguel street they range between 20 and 135 euros per square meter.