Daniel Arenas is the new president of ABINI, the association of national and international estate agencies which comprises companies that operate primarily in the top end of the Balearic housing market. Reflecting on the demonstration in Palma on Saturday that once more highlighted the problem of affordable housing on the islands, he says it was "special" but points out that there are similar protests elsewhere in Europe and believes it won't be long before there are demonstrations in what has been referred to as 'empty Spain'.
"Asturias is one of the regions where housing prices have risen the most. But nothing has been built in recent years. It's all very well protecting old towns and territories, but there's an excess of legislation that makes things very slow. In Munich, for example, traditional businesses are suffering from a lack of residents because Germans have left due to the arrival of investment funds. You go to Venice and the same thing happens. We need to find solutions so that Mallorca doesn't become Venice. That's why creating housing for residents is so important."
In this regard, a Balearic Government initiative is to create a housing observatory that should be ready by the end of the year. One task for this observatory will be to try and establish a true and meaningful figure for the number of empty homes. "The fact is we don't know the number of vacant properties - there's talk of around 100,000 - or how many could be on the market. We also don't know how many could be renovated in order to enter the market; we need to find solutions between the public and private sectors."
Last week, his association and the API association of estate agencies sent a letter to Prime Minister Pedro Sánchez, Arenas explaining that this was to call for a pact, an agreement between all parties.
"Right now we lack up to 30,000 homes on the islands. According to the National Statistics Institute, the population will increase by some 230,000 over the next fifteen years. Where are we going to grow? There won't be urban land, and we need measures like better public transport. We have buses full of tourists right now. There's a labour shortage in all sectors, but workers can't live here because of a lack of housing."
He is in favour of subsidised housing and limited-price housing being designated for residents and for giving residents priority by setting the number of years of residence on the islands that they need in order to access this housing. But he, especially given the profile of his association's membership and a good part of this membership's client base, faces the constant complaint about foreign buying.
"Many second homes have become first homes. There are many people from northern Europe who have bought a second home, and since Covid they have made it their main residence because they're coming with their family."
Does the problem, or part of the problem, therefore lie with holiday rentals? "We've gone from zero to 100 in just a few years, and it hasn't been a gradual increase. Many of these holiday homes were owned by the same owner, especially in Pollensa. But it's becoming clear that they're generating more money than ordinary rentals. This is happening in Paris, Rome, and Barcelona. It's a paradigm shift in tourism. A professor recently said that tourism can't be solely dedicated to luxury; the hotel industry has gone from three to five stars. But someone who doesn't have that much money also has the right to come on vacation, and so they opt for a holiday rental in a normal apartment in Mallorca.
"We meanwhile must tackle illegal rentals. Those with licences pay taxes that go towards schools and roads. But there are those who do things illegally and don't pay any taxes."
Is his hope for a pact a pipedream because of political parties' clashes over development of land? "There are parties who refuse to release land, but it is development land. They need to stop fighting among themselves and sit down. I don't believe they can't find common ground. That's why I say I understand the demonstration and hope it will give the political parties a rocket."
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Nothing will change while there is the inherent greed being generated by tourism and rental costs. You have to make it worthwhile for property owners to want to lower their rents. One reason for so long has been the okupada laws which are now (as in at last) being addressed (if only in a half arsed way), the other reason is the greed of the owners, why rent cheap if you can rent expensive. It should be fun to see which political party has the cahones to make the first real move with regard to building rent and price controlled properties for the indigent polulation.
Charles Dalrymple-ChumleySorry but "hundreds of properties" being freed up for long term rental won't do much to fix the issues. Many thousands of properties for rental at rates locals can actually afford, PLUS a further thousands of properties for sale at prices locals can afford is needed to make a serious impact on this problem.
Whether it's changing the laws regarding renting of place´s or renovating abandoned Place´s there will never be enough place´s for people who just want to stay in a place with such high costs for every thing , All of these Idea´s will and are costing HUGE AMOUNT´S to everyone and there is not the $$$$$ there now Never has been and never will be .
If rental prices have found a level, wages must increase and consumers ( tourists) must pay more. Thats economics. Coincidentally how many of the national protesters voted for the current government?
The problem lies with short stay holiday rentals. Outlaw stays less than 30 days and bingo hundreds of properties will appear on the market for rental and purchase by locals.