Related news: Mallorca housing: Estate agencies "understand the demonstration"

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."

Mallorca protest against an "intolerable" housing situation

Mallorca's housing problems: A lot of talk, but where's the political consensus?

"If urgent measures aren't taken, Balearic society will be condemned to expelling its own citizens due to the inability to find a home"

Balearic estate agencies president: "I understand the demonstration"

Mallorca protest against an "intolerable" housing situation

Mallorca's housing problems: A lot of talk, but where's the political consensus?

"If urgent measures aren't taken, Balearic society will be condemned to expelling its own citizens due to the inability to find a home"