The six - Andratx, Calvia, Felanitx, Palma, Santanyi, Soller - had signed up to the Balearic Government's Build to Rent initiative. Under this scheme, developers will receive rents at affordable prices set by the government for a maximum period of 75 years. One crucial cost element is removed from the equation as the land is ceded for free.
But when the announcement was made, it was stated that work wouldn't start until 2026 at the earliest. Given the urgent need, why will it take so long?
An irony is that the very institutions facilitating construction are the same ones who can delay it - the town halls. It is they who grant the licences. However, planning procedures - and it's been like this for years - are dogged by town halls' lack of technical personnel and by what can be the need to get multi-agency approvals. It can depend on location, but government bodies such as the water resources department have to be consulted.
The government's administrative simplification decree is meant to address this drawn-out procedure, even if it doesn't specifically deal with shortages of technical personnel.
The bureaucracy is one reason for delay. Another also relates to personnel shortage - construction workers. Sandra Verger, manager of the builders association, says that the sector needs more than 5,000 qualified personnel in order to respond to demand. She explains that when companies take on contracts, there is frequently a proviso of a year's delay to start work. This is demand as currently is. The association reckons that 35,000 new homes are needed in the Balearics.
The financial crisis led to a halving of the workforce - 35,000 from what had been 70,000 in 2008. There has been recovery, but there is still a shortfall of some 10,000 compared with sixteen years ago.
Verger points out that the workforce is ageing: 20% are over 55 and only 9% are under 30. And like other sectors, construction is caught in the vicious circle of insularity and inadequate supply of affordable accommodation. The high cost of housing means that workers have to spend a large part of their salaries on rent. "People from other regions or other countries are discouraged from coming to work on the islands."
There is a drive to recruit more young people and more women to the sector and to promote more training. Verger says: "We are trying to convey the message that the construction sector is becoming less hard and more professional. It no longer requires as much physical strength as before." In this regard there has been some success from vocational training programmes for certain technical personnel - "we have more women than men".
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Zoltan TeglasFair comment! Ironically, existing foreign property owners would benefit as the supply of holiday homes would reduce and so the prices of these would rise whilst the supply of affordable homes for locals would increase thus reducing the cost of these. A win, win Shirley?
CompoBecause a lot of readers of the mdb are foreign property owners who don't care about the plight of low paid locals.
Because everyone has to get a cut.
CompoSo several thumbs down to my suggestion. Genuine question: Why?
I suggest a ban on building holiday homes through legislation that prevents new builds being sold to non Mallorcan residents say for 5 years. Consequently all builders will be forced to build for local people only. The local gov then need to give consent for new housing around the island so that the builders have something to build. The only losers will be potential foreign buyers as the supply of holiday homes will be omitted but that is not the concern of the gov or residents.
This year, I contracted for 2 projects. Both received planning permission in days, but took at nearly 6 months to even get started with the work. They had too many projects going on, and not enough workers. Some work was done in June, but it was delayed until end of August, when they resumed. Still not finished. A house that is under construction nearby was started almost 2 years ago. It's almost finished now, but the construction firms just don't have the resources to do that and 20 others at the same time. They were working on it all summer. I think the restrictions on construction (November-April?) are limited to certain areas, particularly tourist resorts.
Are the Builders subjected to only being allowed to work from November to April?. Building work, if allowed ,is exhausting in the Summer. Making it a very tough job.
A Skilled clean organized worker is worth his weight in Gold ask any Builder however you have to prove yourself and be consistent a qualified worker can do 5 times the work of a unskilled worker , the Handworker bussiness is alive and well in Mallorca a builder takes new people on with caution can cost him a lot of money if the worker causes Damage to new equipment or says he knows how to do something but he dose not better to be a bit slow but good than fast and a desaster !
There is a clear labour shortage here. Virtually every shop, supermarket, restaurant, service business, construction firm etc. are seeking employees. Many have signs up in their windows, or have positions open on Internet sites like inselradio. The construction firms are so busy, that any project will take at least 6 months to even begin. And that would be lucky. There's lots of jobs available. Whether potential applicants bother to try or simply aren't qualified is another issue. And they can't be employed unless they're legal, so it's not going to be the "boat people" that some want to believe is the source of all immigration here.
Red tape, hmmm, Spain are very good at that.