Clamp down on foreign property market fears

The United Left Ecologist party yesterday called on the Balearic left-wing coalition government to set up a parliamentary commission to study the effects the “massive” purchase of second homes by foreign buyers in the Balearics is having on the local property market and the environment with the aim of introducing restrictions in the foreign property market. While the spokesperson for the IU-EU party, Balearic Employment Minister, Eberhard Grosske, admitted yesterday that the idea is still in its infancy and still lacks sufficient political support, he is confident that the commission will become a reality and that the brakes will be on the flood of foreign property buyers in the Balearics. Grosske said yesterday that the commission will need to be “brave” to take on the issue, but such steps need to be taken, in his opinion, in order to prevent possible clashes which could escalate into xenophobia in the future. “It's better to grab the bull by the horns, otherwise the result is irrational,” Grosske said. Parliamentary spokesperson for the IU-EU, Miguel Ramon, said yesterday that the widespread buying of second homes, in particular by foreigners is having “undesirable” effects, not only on natural resources, but also on the property market. New house prices in the Balearics has increased by as much as 30 percent over the past year and foreign house buyers are being blamed for pushing up prices. Ramon highlighted the results of a survey carried out by the Balearic government which discovered that 70 percent of the Balearic population are deeply concerned about the increasing difficulty they are having in getting started out on the property ladder. While canvassing for local support for the proposal, the IU-EU is also studying various European legislation in order to see if any govern foreign property purchases and whether or not similar legislation could be introduced in the Balearics.