Palma
Rental yield in Pere Garau
Pere Garau is an affordable area for Palma, with a high rental yield and a Total Return above the city average. Here is what a typical flat in Pere Garau costs to buy and rent, and the Total Return (IRR) it delivers, compared with the other areas of Palma.
Sale price
3,300
€/m² · second-hand homes
Rent
16.2
€/m² per month · market rate
Gross yield
5.9%
annual rent ÷ price
Total Return
12.1%
10-year IRR · typical flat
Appreciation
+6.5%
a year, 10-15 year history
Cash flow
€24
per month, year 1, after tax
What the data says
Pere Garau is an area of Palma. The reference sale price is €3,300/m², based on the Fotocasa index adjusted to transaction prices: 36% below the Palma median (€5,156/m²). It ranks 34 of 37 neighbourhoods in Palma by price.
The achievable market rent is around €16.2/m² per month (the neighbourhood's own figure; idealista asking rents adjusted to achievable rent): about €1,458 a month for a typical 90 m² flat, with no legal cap. The gross yield (annual rent ÷ price) comes to 5.9%, 1.4 points above the city median (4.5%): rank 7 of 37 by gross yield.
With a 70% mortgage at 3.80% over 25 years and a sale after 10 years, the estimated Total Return (IRR) for that typical flat is 12.1%, above the Palma median (10.1%). It takes about €115,106 of cash (deposit, taxes and costs), and first-year cash flow after tax is €24 a month.
Asking prices in its district have grown by an average of 6.5% a year over the last 10 and 15 years (idealista, December 2025), capped at the 6.5% we apply in the IRR. Historical, not a forecast: it is the appreciation the modelled sale assumes.
A typical flat in Pere Garau
The same standard assumptions as the CasaROI map: change the mortgage, term or tax profile in your account and the Total Return is recalculated for your case.
- Size
- 90 m²
- Purchase price
- €297,000
- Monthly rent
- €1,458
- Cash needed · deposit + transfer tax + costs
- €115,106
- Monthly cash flow (year 1)
- €24
- Total Return (IRR)
- 12.1%
Assumptions: 70% mortgage over 25 years at 3.80%, sale after 10 years, Spanish tax resident at a 37% marginal rate, no renovation.
Nearest areas, ranked by gross yield
| Area | €/m² | Rent €/m² | Gross | IRR |
|---|---|---|---|---|
| Son Oliva | 2,845 | 16.2 | 6.8% | 12.2% |
| Son Fortesa | 3,258 | 16.0 | 5.9% | 11.0% |
| Pere Garau | 3,300 | 16.2 | 5.9% | 12.1% |
| El Sindicat | 4,839 | 22.3 | 5.5% | 11.7% |
| Marquès de Fontsanta | 3,727 | 15.6 | 5.0% | 10.9% |
| Foners | 4,190 | 16.0 | 4.6% | 10.2% |
| Arxiduc | 4,047 | 15.1 | 4.5% | 10.1% |
| La Missió | 5,156 | 19.0 | 4.4% | 10.0% |
| El Mercat | 5,515 | 17.8 | 3.9% | 9.2% |
Frequently asked questions
How much does a square metre cost in Pere Garau?
€3,300/m² on average, based on the Fotocasa index adjusted to transaction prices. A typical 90 m² flat costs about €297,000, 36% below the Palma median.
How much is rent in Pere Garau?
Around €16.2/m² per month at market rates: €1,458 a month for a 90 m² flat, with no legal cap.
Is Pere Garau a good buy-to-let investment?
The gross yield is 5.9% (Palma median: 4.5%). With a 70% mortgage and a sale after 10 years, the estimated Total Return (IRR) is 12.1% against a city median of 10.1%. It depends on your financing and tax residency: with your own profile the number can change.
Is Pere Garau in a stressed rental zone?
No. Palma is not a declared stressed rental zone: rents are set by the market, with no legal cap.
Buying in Pere Garau?
Paste the listing and we tell you whether it holds up at that price: legal rent, taxes, red flags and a verdict.
Sources and method
- Sale: Fotocasa · neighbourhood sale-price index (June 2026) · ÷1,13 a precio de transacción (calibrado vs registral Madrid/BCN)
- Rent: idealista · informe de alquiler por neighbourhood donde se publica, si no ancla del district/city (June 2026) ajustada a renta alcanzable (×0,95) con la estructura declarada SERPAVI del neighbourhood (Sistema Estatal de Índices 2024)
- Appreciation: average of the 10- and 15-year rates of the area's asking price — historical, not a forecast