Massive renewal: 112,000 island residents will have to update their rent in two years

PalmThe Balearic Islands have 112,484 people living in homes with rental contracts that expire this year or next, according to data collected by the General Secretariat of Consumption from the Tax Agency's Household Panel, in collaboration with the INE and the Institute of Fiscal Studies.

This volume places the Balearic Islands behind Madrid (623,142 affected) and Catalonia (474,814), but ahead of regions such as Andalusia (360,040) or the Canary Islands (268,053). In total, in Spain there are 2,687,392 people affected by the expiry of their lease contracts between 2026 and 2027.

The new regulatory changes come with the housing law's royal decree, which came into effect this past weekend. The regulation establishes that all habitual residence contracts that end before December 31, 2027, can be automatically extended for two years. Furthermore, it sets an extraordinary limitation on the annual rent update of 2%, although if the landlord is not a “large holder” this can only be applied with an agreement between the parties.

In terms of contracts, the Balearic Islands have 56,943 agreements that expire in this period, according to the same sources. At the state level, Madrid leads the list with 224,961 contracts, followed by Catalonia with 177,833 and Andalusia with 144,016. Data from the Basque Country and Navarra are not included due to their status as regions with a special fiscal regime. According to experts, this measure aims to provide stability to tenants and prevent disproportionate rent increases, in a context where access to housing continues to be one of the main challenges in the Balearic Islands and in the rest of Spain.