The housing crisis in Majorca hit new heights this weekend, as the island joined some 40 cities across Spain in coordinated protests. Thousands of demonstrators took to the streets of Palma on Saturday (April 5) to highlight the problem of affordable housing on the islands.
Now, the new president of the ABINI, (Balearic National and International Real Estate Association), which comprises companies that operate primarily in more expensive Balearic housing market, has shared his own concerns. Daniel Arenas said the protest was “special” but 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,” Arenas said, the Majorca Daily Bulletin reported.
“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 Majorca doesn’t become Venice. That’s why creating housing for residents is so important.”
A recent report revealed that nearly 40% of families who rent are spending over 40% of their income on accommodation.
According to the Majorca Daily Bulletin, as of Friday, there were 19,139 properties for sale in Majorca, of which 4,491 were in Palma. Below 120,000 euros (£102k) this figure was reduced to just 128 properties on the island. If the range was increased to 200,000 euros (£170k) , there were only 543 homes on the island and only 153 in the city.
In the rental market, in Palma there were 854 flats for rent and only 10 were under 1,000 euros (£851) a month. In Majorca as a whole, there were only 40 properties that fell below this price range, out of a total of 2,412.
In the Balearics as a whole, there are only 80 properties below 1,000 euros, out of a total of 3,407 on the market.
“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?” Arenas asked.
“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.”
A major problem is the number of holiday rentals, available through sites such as Airbnb.
“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.”
Over in Malaga, a Spanish resident who took part in the protest in the city revealed how his rent has increased by several hundred euros in just 10 years. Manuel, an engineer, said: “My first rental price was 200 euros [£170] for a room. Now the normal price is around 500-600 euros [£426-510]”.
Today, Manuel pays 850 euros to split a room with his partner in the city.
