Spokespeople for estate agency associations and property websites agree with Garriga's analysis, and they give what are now very familiar reasons why there is a housing crisis in Mallorca and the Balearics.
María Martos of the Fotocasa website, for instance: "The Balearic Islands have the highest demand for housing in the whole of Spain. The Mediterranean climate and its extraordinary natural environment make the islands a highly desirable place, both for local citizens and for foreigners with high purchasing power. However, the island territory is limited. Expansion of housing supply is therefore more difficult than in other regions. The imbalance between supply and demand is great. In addition there is a totally insufficient amount of social housing, and this pushes prices up."
Hans Lenz of the ABINI association says that one of the factors that most influences the high price is the shortage of homes at affordable prices - around 20,000. He adds that administrations have failed to take an ever-increasing population into account, while arguing that Spanish Government measures are leading to owners withdrawing their properties from the rental market, which "is driving up prices even more".
Economist Pau A. Monserrat, a professor at the University of the Balearic Islands and a member of the Economics and Social Council, a Spanish Government consultative body, says: "The Balearic property market has a growing demand, both from people who come to work here and from retirees who want a second home or to settle on the island. There is also a decreasing supply because not enough is being built. This makes prices go up. Growing demand, stagnant supply and falling interest rates lead to higher prices. And the rental market is even worse.
"Until we have a serious debate, without absurd ideologies but with appropriate economic knowledge, we will find ourselves with a very serious problem. If we do nothing, it will only be solved when no one wants to come as a tourist or come and live here. The price of real estate will then fall because we will no longer be attractive. I don't think that this is what we want to happen. We have to implement measures to solve a real-estate problem and these require long-term policies and consensus."
* In contrast to the estimated eight per cent rise, it might be noted that the College of Notaries last month reported that house prices in the Balearics fell by 6.2% in May and by 5.9% in June (monthly decreases) and that sales were also down.
3 comments
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ResidentAs it appears, it is the very local Mes politicians that bash foreigners selling houses to the very same foreigners. Hypocrisy...
ResidentWhat an idiotic comment. Last time I checked Spain and Mallorca too are part of the EU so obviously foreign EU nationals should have the same rights to buy homes and live here as “natives” (whatever that means). Focus instead on increasing “natives” disposable income by improving education and general economy. Work harder. You think those foreigners buying houses here were gifted the money to do so? Think again!
We have too many foreign residents that collapse the island and prevent natives from buying homes. All tourists are welcome, we have great hotels for them to spend their holidays, but don't collapse the island by buying houses!! Stop foreing residents!!!