From the Balearic Association of National and International Real Estate Agencies (ABINI), we wish to express our deep concern regarding the recent measures proposed by the Government on housing, which continue to exacerbate the problems faced by the real estate sector, especially in the Balearic Islands.
After six years of Pedro Sánchez’s government, the legislative balance in housing matters is bleak. A Land Law that has not materialized and a Housing Law that, far from solving the announced problems, has had adverse effects. These laws have created a more restricted market, raising rental prices and reducing supply. Instead of correcting this dangerous course, the Government proposes new measures that, in the case of the Balearic Islands, will not only be ineffective but are likely to worsen the situation.
Tourist and Seasonal Rental Property Registry: More bureaucracy, less real control
Among the new regulations, the Tourist and Seasonal Rental Property Registry stands out, imposing new bureaucratic burdens on both property owners and intermediaries, requiring them to register each property. While it may seem like a measure intended to regulate the market, in reality, it only adds more administrative complications without providing real solutions.
These measures do not stop temporary rental contracts; instead, they verify them retrospectively. Everyone in the real estate sector knows that this type of regulation only leads to greater legal uncertainty and unnecessary complexity. As Hans Lenz points out, “to this day, the supply of rental properties in the Balearic Islands has fallen by 30%, while prices have increased by 25% since the Housing Law came into effect.” These measures will only continue to cause more non-compliance from property owners and more complications for registry managers.
When a law is enacted, it is essential to ensure its compliance. In the Balearic Islands, effective control over the illegal supply of vacation rentals has not yet been achieved. How can we expect real estate platforms to function any differently from vacation rental platforms? We believe there is no guarantee that these new measures will improve the current situation.
€250 Rental Aid: An Ineffective Solution for Young People in the Balearic Islands
Another controversial measure is the €250 rental aid for young people, which limits access to rentals of up to €600 per month, or €900 if the regional government deems it necessary, or to rooms costing €300. In Palma, there are currently only 10 listings with these characteristics on property search portals.
Furthermore, there are cases of beneficiaries who have taken up to two years to receive the aid. This measure, in its current form, is not realistic in the context of the Balearic market. If the central government does not adjust the parameters of this aid to the reality of prices in the Balearic Islands, it will not only be ineffective but will also increase the frustration of young people trying to access housing in the region.
Real Solutions for the Balearic Islands: Public-Private Collaboration and the Release of Public Land
At ABINI, we believe that the government would do much better to support the urgent approval of the Urgent Housing Measures Law in the Balearic Islands, which puts at risk 4,000 affordable homes for residents. We also urge the Ministries to work on the release of public land in collaboration with the private sector to promote the construction of social and affordable housing.
A clear example of the inefficiency in the management of public land is Son Busquets, which has been neglected for decades due to bureaucracy and remains undeveloped, despite being a project that could alleviate the housing problem in the region. This inaction only demonstrates how the lack of collaboration between administrations has harmed the well-being of residents in the Balearic Islands. “We ask for real collaboration between the central government and the regional government so that this emergency measure and housing for residents can become a reality. Everything else that is being attempted right now to cover up past mistakes will have no positive effect, quite the opposite—more price increases and more non-compliance,” emphasized Lenz.
At ABINI, we insist that the measures proposed by the central government will not solve the problems of the real estate sector in the Balearic Islands. Nor is it expected that a significant number of the 183,000 promised homes will arrive in the Balearic Islands each year. Instead of adding layers of bureaucracy, pragmatic and viable solutions are needed that promote greater collaboration between the public and private sectors, as well as an adaptation of regulations to the local reality. Only in this way can we reverse the current trend of reduced housing supply and the uncontrolled increase in prices.
