In the post-pandemic era, the prevalence of remote working remains high, and with it, the demand for flexible and affordable housing solutions. Where mountain peaks meet sun-kissed Mediterranean beaches seems to have the perfect conditions for the coliving in Mallorca to flourish, however the story is a bit more complex.
Local Context
The Balearic Islands are one of the most famous desirable tourist destinations in Europe, with Mallorca alone – an island with just under 1 million residents – registering over 13 million arrivals every year. Moreover, tourism represents over 40% of the islands’ GDP and 35% of its employment. It doesn’t come as a surprise that the number of expats in the island has steadily grown, with latest estimates showing that they now represent roughly 28% of the total population.
These numbers help explain two key factors of the island’s hospitality market: the rise in the number of tourist accommodations and; share of foreign owners acquiring housing and/or land.
Starting in the early 2010’s, with the emergence of platforms such as Airbnb, there was a boom in the number of rental accommodations. Thousands of residential apartments were converted into short-term tourist rentals. In parallel, the number of 4 and 5-star hotels rose by 90% since 2015, and, between 2019 and 2025 alone, the Balearic Islands attracted over €3 billion in hotel real estate alone.
At the same time, the share of expats acquiring land in Mallorca rose to over 35%, and is especially prevalent in the luxury segment, with most buyers coming from countries with higher purchasing power like Germany, Britain, or Scandinavia. Increased demand for first and second homes, allied to an extremely slow increment in supply created a clear gap that has prompted property prices to dramatically rise.
Housing and coliving in Mallorca
While it is true that governments throughout Europe are facing an unprecedented housing crisis with the average property prices in the EU rising by nearly 65% over the past decade, according to Eurostat, the reality in Mallorca is even more challenging than in the rest of the continent.
Property prices in the Balearic Islands have risen by 97% according to some accounts, and it is now the most expensive Spanish region to purchase property, even above Madrid or Barcelona.
On the one hand, the island’s natural, ecological, and environmental resources constitute an element of attraction of tourism and investment, on the other hand, it needs to be protected, effectively reducing the available space for construction. Currently, almost 40% of the island’s surface is interdicted to construction, the result of which is scarcity of physical space for housing.
To add to this, the properties constructed in the island are not suited for the needs of coliving in Mallorca. Most of them don’t have enough rooms to monetise in a profitable manner for a coliving space, and those that do are often in need of extensive renovation. Leaving potential operators with very limited and scarce options like acquiring an entire building and doing extensive remodeling and refurbishment, which results in an astonishingly high investment, or reimagining the concept of coliving by creating boutique spaces with a very limited but highly curated group of guests.
This conjunction of factors led the Regional Government to introduce a cap on the total number of tourist beds allowed in the island in 2017 and, in 2018, Palma’s City Council imposed an outright ban on tourist rentals in multi-family apartment buildings. This legal framework effectively made it impossible for coliving spaces to appear in the region. However, in 2023 the government recognised that a rental solution where individuals rent rooms and share common facilities and spaces could contribute to a reduction of the pressure in the market.
The concept of “accommodation with complementary common spaces” was introduced as a legal housing typology, with this law targeting groups suffering from the extreme island housing shortage, such as local young professionals, seniors, and essential displaced public workers like teachers and healthcare staff. In practice, it makes it possible for coliving spaces in the region to be integrated into existing urban parcels, as long as they enforce a minimum stay policy of at least 1 month.
Yet, there are still major legal struggles discouraging the establishment of new coliving operators in the island. For instance, local municipalities retain the power to block the implementation of these businesses through urban planning and activity licenses. And according to article 17.12 of the Horizontal Property Law, Owners’ Communities have the power to ban the business if a three-fifths majority of voters so wishes.
The Operators in the Island
Despite the regulatory minefield, there are still some active operators in island. Nomadico is located in a traditional-style Mallorquin farm-house in Búger, a 30-minutes’ drive away from the capital, Palma and the beach. They are small community focuses on work-life balance and the activities they organised are aimed at exploring the island and supporting the local economy, while promoting sustainable travel in off-peak seasons. With an adjacent coworking space, Nomadico is recognised for offering accessible rates while maintaining good quality, with prices ranging from €490/month in a shared room up to €1.300/month in a private double room.
Palma Coliving operates two spaces in the capital of the island. The Town House Gomila has 15 rooms with capacity for up to 20 residents, while the residence in Son Armadans has 7 rooms. From weekly dinners to networking events and outdoor activities, their international community can enjoy regular community events. Across their locations, prices are set between €1.650 and €1.950 per month.
Located 10 minutes south from the airport and 3 minutes walking from the beach, Bedndesk, is a smaller operator with a maximum capacity for 7 residents in a community that is much more visible offline than on Instagram, relying more on word-of-mouth than social media engagement. Their productivity-oriented space offers options that start at €840/month in a shared double room and go up to 1.520€/month for a private double room.
The biggest operator in the island has only officially opened doors in April 2026. Somos Coliving operates 2 locations in Palma with a combined 40 rooms in total. Every floor has one kitchen and living area that is only accessible to residents of that designated floor and while facilities like the pool are shared by all members. During peak season, one month in a single room costs €1.800, while one month in a room with a private balcony goes for €2.400.
Laberint Coliving, which has opened doors in June, operates a space with only four rooms in Palma. Each room has capacity for 2 people, and interested residents must go through a short interview to make sure they are a good fit within the small community, which is made up of people who want to immerse themselves in Mallorquin culture. Rooms prices range from €1.375 to 2.125€.
Considering the reduced number of spaces the market of coliving in Mallorca is exceptionally diverse. While most are located in the capital city, others prefer to operate in smaller towns by the coast or closer to the mountains, and the size and feel of each community varies considerably. Some spaces have no more than 7 residents, carefully curating the community and ensuring the presence of a community manager to support daily life and connection among residents that seek deeper connection between one another, while others can hold up to 19 people under the same roof, having a more urban and international vibe about them.
All operators provide essential services as standard, high-speed internet and weekly room cleaning. Most of them offer a shared kitchen, dining and living areas, workspaces, and a pool, while the only one offers a full coworking space. The price range is also quite wide with some of the more premium options costing almost 5 times more than the cheapest shared options.
Final Considerations
Mallorca might have the potential to be a coliving haven, less than 3 hours away from London, Rome, Paris, Brussels or Berlin, with a vibrant culture, breath-taking nature, pristine beaches, and affordable cost of living. However, the scarcity of suitable plots and properties for such a development is aggravated by steep land prices and strict regulations. Thus, it is still difficult for the coliving market to grow, and mature in the island.
While the slight loosening of regulations allowed the appearance of two new operators in Palma this year, the existing framework incentivises coliving spaces to appear in urban and built-up areas, increasing the pressure on an already highly volatile housing market, ultimately driving up prices.
Given that roughly half of the population in the island live in the capital, and that the entire economy is highly dependent on seasonality, coliving in Mallorca could be seen as a way of diversifying the island’s appeal. If efforts to start coliving spaces in more rural areas were encouraged, this housing typology could help remove part of the pressure exerted by expats on the urban housing market, whilst promoting longer-term stays that would stimulate the local economy even during off-peak seasons.
