Cost of building materials increasing new house prices in Mallorca

Projects may have to stop until the situation normalises. | Archive

Majorca Daily Bulletin reporterPalma30/10/2021 07:31

The association of builders in the Balearics is warning about the effects of an unprecedented rise in the cost of building materials. The association's manager, Sandra Verger, says that the rise over the past six months for all types of construction materials is equivalent to that for the previous 13 years. "The situation is critical."

Verger points to the particularly negative effect on the construction of VPO protected social housing. Current regulations fix prices, but the rising cost of materials will shatter building companies' calculations. This will mean that there is no additional protected housing, because "these extra costs that cannot be assumed by the companies."

For most other projects, she says, "there may be contract terminations because the construction companies will choose not to go ahead." "Extra costs will mean an increase that puts housing out of the reach of the market. The only sector that that will be saved, for now, will be the construction of luxury homes."

On the mainland, the average increase in the cost of housing is around 22%. In the case of the Balearics, the insularity factor increases this percentage considerably.