Balearic Property Leaders Warn of “Expulsion” from Housing Market
Leading figures in the Balearic Islands’ property sector have cautioned that residents are at risk of being effectively “expelled” from their communities due to soaring housing costs, unless authorities take action. This warning was issued by ABINI and API, two prominent Balearic property associations, in a letter addressed to Spain’s Prime Minister, Pedro Sanchez, ahead of his scheduled visit to Palma de Majorca.
Urgent Measures Needed to Prevent Citizen “Expulsion”
In their joint communication, the associations urged the implementation of immediate measures. They stated that without intervention, Balearic society “will be condemned to expelling its own citizens due to the inability to find a home,” as reported by the Majorca Daily Bulletin. Emphasizing that housing is a fundamental “right” rather than a “speculative asset,” the groups advocated for policies that discourage market speculation while simultaneously supporting “responsible investment and housing supply.” Their plea follows widespread demonstrations across various Spanish tourist destinations, where local populations are protesting the impact of tourism on living expenses and housing affordability.
Rental Costs Skyrocket Across Spain
Recent data from property portal pisos.com indicates a significant surge in rental prices nationwide. A report from last month revealed that average rental costs across Spain have increased by over 20% in the last five years.
National Rental Price Increases
- The report highlighted a rise in average monthly rental prices from €898.34 in January 2020 to €1,125 in January 2025.
- This represents a national increase of 20.15%, according to Canarian Weekly.
Pisos.com attributed these substantial increases to several factors, including population growth in major urban centers, a scarcity of available properties, and heightened demand for vacation rental accommodations.
Debate Over Solutions to Housing Shortage
Hans Lenz, President of ABINI, previously commented on a proposed 100% tax on property sales to non-EU residents, suggesting it was a misguided approach. He argued that the core issue is not foreign ownership but rather the insufficient supply of housing stock.
Prime Minister Sanchez has previously voiced concerns about societal division, warning of a future where society is split into “rich landlords and poor tenants.”
However, implementing effective measures has proven challenging due to the division of powers with regional authorities, European legal frameworks, and the Prime Minister’s minority government in Parliament.
Call for Unity and Prioritization of Citizen Well-being
Despite these obstacles, the two associations expressed hope that the Prime Minister’s upcoming visit could mark a “turning point,” fostering collaboration among different political factions. They urged political leaders to “put aside differences and prioritising the well-being of the people of Mallorca and those who have chosen our islands to live.”
“Housing cannot continue to be used as a political battleground,” they asserted. “While the different parties accuse each other of inaction, families see their chance of having a home in their own land slipping away.”
The associations emphasized that their concerns resonate broadly throughout Balearic society, extending beyond the property sector.
“It is a concern that affects workers, business owners, young people, families and the elderly, because the right to decent housing has become an unattainable luxury for many,” they concluded.
Spain’s Ministry of Housing and Urban Agenda has been contacted for comment.