Ricard Garriga, CEO of mortgage brokers Trioteca, estimates that property prices will rise by 8% in the Balearics by the end of the year. "The latest data from the National Statistics Institute show a year-on-year increase of 7.8% in housing prices (national figure). With the recent fall in the Euribor below 3%, together with attractive fixed-rate mortgages, demand will accelerate rapidly. With a limited supply of homes, this will drive up prices even further. Although the increase has moderated in the Balearics to 6.2% year-on-year, we expect that the rate cut will mean that prices will rise by up to 8% by the end of the year. The pressure of demand, added to the shortage of supply, makes the increase inevitable."
Mallorca's housing crisis "will only be solved when no one wants to come as a tourist or come and live here"
"The Balearic Islands have the highest demand for housing in the whole of Spain"
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7 comments
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ResidentYears ago it was many dilapidated properties which was very cheap, totally within the budget for locals, especially a bit out from Palma. Where were they then, the locals? Noone interested to convert the houses to a nice abode. It's too late to make noices now. There were plenty of opportunities which was not taken unfortunately. I think the government has done nothing to build good reasonable properties to the locals only. So blame them, sitting on their hands forever.
Consistent with the headline, the solution should be easy; Just go back to the way it was 40 years ago. Rip up the motorways, downsize the airport to a small terminal and a couple of gates. Get rid of all the big supermarkets, shops and restaurants, ban solar power and let Endesa charge whatever they like, remove the fibre internet that now covers the island. Drive the economy into poverty... Who would want to come here then? That'll fix it.
RickWhat an idiotic comment!!!. Last time I checked I couldn't find UK in the EU. Are you going to tell us what it means to work hard? I don't care where the foreigners who buy houses here get their money, but you won't come to give us lessons on how to live in our house. Think again!!!
This Whole thing has gotten Way out of control Mallorca actually on many levels in all kinds of bussiness receive very substantial funds from the EU and have for a long time , these people who have invested in Mallorca have spent there own money this is money they have earned not euro funds , for sure the locals want to make money from foreigners and Allways have , that is why they love the EU drive around all over you see those little blue flag with the stars that means they got money from the EU Brussels !
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!!!