According to latest figures from Spain's National Statistics Institute (INE), there were 441,536 main residences in the Balearics in 2021. Of these, 292,570 were lived in by owners, 66%.
In 2011, the number was 302,519 (70%). Ten years previously, in 2001, the percentage was 74%. Over the ten years from 2011 to 2021, people living in properties they owned decreased, while the number of properties with tenants increased from 92,785 to 103,526.
The decrease can partly be explained by difficulties with affording a home. There was also the financial crisis, prior to which there had been a housing boom and easy access to mortgages. When the bubble burst, the market dried up, people looked to sell and many moved into the rental market.
Housing prices began to recover and so since 2013 there has been a roughly 40% increase. Meanwhile, salaries haven't keep anything like pace. Buying a home has increasingly become a pipe dream.
One of the Balearic government plans for addressing the current housing situation is one by which it will act as a form of rental agency to ensure that owners who have empty homes, some 100,000 in the Balearics according to latest figures, put them on the market. The housing ministry will be explaining details of this plan shortly. Essentially it will involve renting empty properties at market prices and then subletting at a lower price, which could be up to 30% less.
It might be noted that while the INE refers to 441,000 main residences, the total number of dwellings in the Balearics has been put at around 630,000.
3 comments
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I'm pretty sure the law won't change, so rental properties will not increase in numbers, no matter what the Councils will suggest. It's a pipedream.
This is exactly why owners won’t rent out their properties. They have no rights - who in their right mind would give away their property for free??? Until the law protects landlords, there will be a shortage of affordable housing for rent. It’s simple. Really sad that honest renters and honest landlords are trapped in this vicious cycle. But - like Tim said - the only way out is to make the law fair. Don’t hold your breath
This is the same as the Junta de Andalucia they have enacted such policies to try and solve the housing crisis. However, the Junta often renegades on financial promises leaving landlords with costly legal disputes. Unless the Spanish courts start to act in the interests of landlords, I feel there isn´t going to be much interest in letting out properties for long term rentals. All rights are with the tenants even if they haven´t paid rent in over 2 years. Eviction is almost unheard of even if the landlord can prove the tenant has the ability to pay rent. Once the tenant moves in, they will claim "vulnerability" it´s impossible for the tenant to get the property back leaving them liable for utility bills, property costs etc.