Palma, Mallorca

How much of Palma would be stressed? | Archive

Andrew EdePalma14/04/2023 19:32
TW
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Gaining agreement for Spain's new housing law has taken months of discussion. The two coalition parties of government, PSOE and Unidas Podemos, couldn't agree, while there were also disagreements with parties that the government relies on for support. Finally, there now is agreement, a key stumbling block having been criteria for defining so-called 'stressed areas'.

As the legislation contemplates limiting rents, these criteria are crucial. One to have been agreed is that a stressed area can be declared if the cost to rent is more than 30% of average incomes of people living in specified areas. And it potentially has enormous implications for the Balearics.

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Earlier this year, consultancy Atlas Real Estate Analytics concluded that 503,951 homes in the Balearics could theoretically be included in stressed areas - 94.6% of a total of 532,991 dwellings. The calculation clearly is only theoretical because only a percentage of the 503,951 are for rent, but it nevertheless gives an indication of how widespread declarations of stressed areas could be.

President Armengol has welcomed the agreement, as "it will include limits on rental prices and give more tools to the regions". "In the Balearics we have negotiated a great deal with the ministry (for the urban agenda) so that the regulations guarantee that regions like ours can declare areas of stress where ceilings can be placed on rental prices."