Mallorca housing shortage now hits businesses too

Mallorca’s population grows by 20,000 people a year, but there are too few homes: the housing shortage is now hurting businesses too. Employers’ association Pimem warned on Friday, 2 October, that the problem affects how companies operate and compete. Its president, Jordi Mora, said the social cost remains the most serious concern.

Pimem describes Mallorca as a housing market under severe strain, although it has not been officially designated as one. Demand keeps growing while the supply of homes falls well short, the association says.

The Spanish Congress of Deputies rejected housing decrees on Friday, but Pimem says they would not have tackled the causes of the shortage. Mora supports making deals harder for investment funds known as “vulture funds”. He says that alone will not provide homes for residents: those funds invest in turning housing over to luxury or tourism use instead.

Pimem wants faster procedures with legal certainty and a lower tax burden for people seeking a home. It also wants public guarantees to help residents finance their first home, regardless of age — not just young people.

Topics: Tourism · Politics · Economy

Source: Europa Press / Mallorca.com