Building boom in Palma

The building boom in Palma denotes the increase in demand for real estate by foreigners and residents in all areas. | R.L.

Jason MoorePalma22/03/2024 09:42
TW
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Owning a home in Mallorca is literally worth its weight in gold! House prices across the board have risen by 50 percent over recent years. What an investment if you purchased a house 20 years ago! Now, it is obviously bad news for anyone who wants to get on the housing ladder but that is another story. What is clear is that if you own property you are in a very lucky position.

Not only are you sitting on a nice nest egg you can also command a massive rental income. It is not only the value of homes which have increased, it is their rental value as well, with rents being some of the highest in the country. There are complaints that young people can’t afford to buy their own homes. This has little to do with the real estate industry. It is a failed government housing policy with successive governments across the political spectrum to blame.

An affordable housing plan should have been introduced 20 years ago and this would have resolved the problem. The government could have built hundreds of affordable homes. But no.

Governments were the first to cash-in on the benefits of the housing boom but did little to ensure that there was a stock of affordable homes available. Those lucky enough to own a property on the island can toast their good fortune. They made the right choice; unfortunately they will find it difficult to buy again.