On one property website, the cheapest apartment to rent in Palma is 540 euros per month for 25 square metres. For a two to three-bedroom flat, the minimum is 800 euros with three months deposit. An employment contract is a necessity.
Those who can't afford these prices or don't meet the conditions are having to look for alternatives, but the situation is likely to get more difficult as the season progresses and more tourists arrive. Josep María Rigo, director of housing at Palma town hall, says that affordable housing is scarce and that prices are rising, "but wages are not". If it's any consolation, he notes, the situation isn't as difficult as it is in Ibiza.
"There are examples of substandard housing, and we fear that requirements such as the signing of a legal contract are not being met. We have come across adverts for accommodation that in reality are not what they seem."
A recent case in Cala Major highlights the issue. On the ground floor of one building, commercial premises without certificates of occupancy were being rented as accommodation for 600 euros each. Rigo stresses that these don't meet habitability regulations. "At most they have a toilet, but there are no separate rooms or ventilation and they lack light. These are desperate solutions to the lack of places for affordable rent."
The Platform for People Affected by Mortgages regularly deals with cases of people who live in commercial premises because they have no other option. Carlos will soon be evicted from the premises where he lives due to non-payment. "I receive a pension for absolute and permanent disability of 700 euros and I am paying 580 euros for renting a 30-square-metre premises. Housing is inaccessible for most Palma residents."
"The owners have gone crazy trying to make money, while evictions are increasing like wildfire." He confesses that he had never imagined living in such conditions. "I have friends who are living in motorhomes or in vans. People live where they can." All he wants is "to live with dignity".
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More VPO flats for local people are needed. In Palma there are plenty of brown field sites that could be used like the old guardia civil site. Maybe the local government doesn't have enough money to build them. I don't know.
Marvin Ulla can’t disagree with either of you. Homes for local use and occupation either owned or rented is necessary for as Marvin says the average folks making a living on the island. The issue is both supply side and demand side issues. The fact property is in demand due to Majorca’s desirability and tourism both drive commercial property use and prices. Rich people will always have money so out of normal policy. It’s the low mid cost point that needs sorted. Islands wages are squeezed by the cost pressure on that market segment Majorca is in . So the premium market aspiration is a sensible one along with economic diversification like I.t. Industries. That will need a sound plan and nerve to achieve.
Have to agree with David, but it’s not only the low paid who are being squeezed, those with permanent contracts but getting average earnings are really struggling now too. It’s all getting too expensive for locals and foreigners too (non-wealthy, yes they exist too, we’re not all on comfortable pensions or millionaires!).
Why does the Balearic government build flats for locals only with a modest rent rather than always complaining.
The choice of a roof over your head , however substandard, or sleeping in a doorway or tent. Many I think would choose the former I think. The low income reality versus the accommodation price for joe average on the island is now critical. Either accommodation is made affordable and available in a similar way as Monaco for native population, that is a tax subsidy for local housing paid by it’s more wealthy residents. Or the wages rise and the Majorca offer becomes more restrictive to those willing to pay more for the service. Either way some on pays. High cost low wage economies do not function. Majorca is now at that point.