Mallorca homes squeeze: Balearics weigh second-home curbs

Second-home purchases in Mallorca could face new restrictions after the Balearic Government said it would examine what a proposed European Union housing rule may legally permit. Speaking in the Parliament in Palma, Mallorca, on 15 September, Housing, Territory and Mobility Minister José Luis Mateo said any measures must comply with Spanish and EU law. The EU proposal is only starting its legislative process, but Mateo said the islands’ limits as a restricted territory would be put before Brussels.

The proposal does not support price caps, Mateo said. It does, however, encourage EU member states to curb harmful speculation in housing. Its measures include tax action, greater market transparency and reserving a defined share of new developments for social and affordable homes.

Government points to existing housing measures

Mateo said the Balearic Government already requires at least five years’ residence for access to certain housing developments. He also said 10,000 affordable homes are at some stage of processing, with the figure continuing to rise.

More than 34,000 people across the Balearics have received government support, he said, including rent aid, tax relief and the youth mortgage scheme. Mateo added that the Government would not declare areas under housing pressure, arguing that places with that status have more seasonal lets.

Opposition says prices are running away

MÉS per Mallorca deputy Ferran Rosa said the housing problem had gone from serious in May 2023 to very serious now. He put the rise in rents since 2023 at 30%, while sale prices had climbed 34% and the average square metre now cost €5,600.

Rosa said Palma has more people without a home than any Spanish city except Madrid and Barcelona. He also said one in four homes sold under the current Balearic Government — 10,201 homes — had been bought by foreigners living abroad. Such purchases remove homes from the market and add exceptional price pressure from buyers with high spending power, he argued.

Mateo replied that housing powers sit with Spain’s autonomous communities. He also pointed to the new limited-price housing category, which can require up to 20 years of permanent residence depending on the municipality.

Topics: Housing · Politics · Palma

Source: Europa Press / Mallorca.com