Econationalists Més, both the Mallorcan and the Menorcan wings, have once more placed the potential for a ban on the sale of homes to non-residents firmly on the islands’ political and social agenda.
It was Més per Menorca who started the ball rolling anew in announcing they had registered a motion with the Balearic Parliament for the government to officially declare a housing emergency (or emergencies that could be for the whole region, individual islands or indeed individual municipalities). Once declared, the sale of homes to individuals not originally from the Balearics would have to satisfy certain requirements, e.g. proof of a minimum five years residence in the Balearics.
Spokesperson Josep Castells addressed the major stumbling block preventing such restrictions – EU regulations – arguing that there would not be a contravention as there is jurisprudence that allows limiting the free movement of goods and capital for reasons of general interest. A housing emergency could be taken to be a matter of general interest.
Castells was aware that the motion wouldn’t get support from the Partido Popular government, but he felt it important to keep the debate open. The PP did after all once reject the tourist tax; they have now accepted it.
Lluís Apesteguia of Més per Mallorca also drew attention to EU jurisprudence in respect of the general interest in outlining the motion his party has presented to parliament. He highlighted the potential role of town halls. They could propose bans on sales to non-residents under certain criteria, all of which currently exist, e.g. a runaway increase in house prices. It might be noted that Apesteguia, as well as being the leader of Més, is the mayor of Deya, where there is a particularly high level of foreign home ownership.
For any of this to happen, there would first have to be parliamentary approval. This is unlikely. But were there to be, proposals would then have to be referred to Congress in Madrid. If Congress were to give approval, lobbying of the EU and the European Parliament would be the next step. In short, nothing is about to happen, but it isn’t completely out of the question that it might happen in the future.
Living in a gym
An indictment of the housing situation has come from Manacor, where the owners of a one-time gym face fines of 70,000 euros each for having converted the gym into 26 substandard accommodation units plus communal bathrooms and kitchens on the building’s two floors. An inspection last month confirmed the existence of these units, for which – obviously enough – there was no planning permission and there were no certifications of habitability.
The government has meanwhile been fleshing out its ‘Safe Rental’ programme. This is to be launched in November and is primarily aimed at small owners of empty properties. The government is to encourage the renting out of these properties by in effect acting as a rental agency. It will pay owners the market rate (to a maximum of 1,500 euros per month) and then let the properties out at prices at least 30% lower. Owners will also be entitled to a 70% tax deduction.
The initiative comes with certain guarantees, e.g. ensuring the good condition of the properties. The government can’t entirely guarantee that there might not be tenant-squatters – people who initially pay rent then stop and claim squatters’ rights. However, the government does have greater wherewithal than individual owners in dealing with this sort of issue, while owners would still receive rent payments. In general it seems like an admirable and win-win scheme, the government estimating that almost 4,000 properties in the Balearics will come onto the market.
Rental agency “extortion”
The housing situation has given rise to less than ethical practices – illegal in fact. The Manacor gym is one example, another has to do with estate agencies who manage rental properties. The Consubal consumers association has formally denounced three estate agencies in Mallorca for practices such as charging commissions to tenants that are equivalent to a month’s rent and for drawing up contracts. Neither of these are permitted. Owners have to pay, not the tenants, who aren’t obliged to pay any form of commission.
Consubal, declining to name the estate agencies, has reported them to Spain’s consumer affairs directorate. The ministry of consumer affairs is understood to be investigating a number of estate agencies, which could ultimately face hefty fines – 100,000 euros or perhaps more. The former vice-president of the college of estate agencies in the Balearics, Natalia Bueno, has likened these practices to “extortion”. She suggests that the agencies should be named and shamed.
Hostility and tourism sustainability
We are by now very well aware that housing goes to the heart of issues regarding tourist and resident coexistence. There was a great deal of focus on this coexistence at the Summit of Sustainable Destinations in Llucmajor last weekend; social sustainability was a key theme.
Whether this summit actually achieved anything is open to question – was it just another talking shop? – but if those speaking and attending are good to their word, then the views of residents are to be central to policy and decision-making going forward. Rosario Sánchez, the Mallorcan who is Spain’s secretary-of-state for tourism, had the last say at the summit: “Mallorca can lead tourism sustainability in the whole of Spain.” We’ll see, the context of the summit having perhaps been summed up by a key soundbite takeaway from Professor Jafar Jafari, founding editor of Annals of Tourism Research: “Hospitality has become hostility.”
Palma is certainly not lonely
It is seriously debatable whether Palma (or Mallorca as a whole) needs the likes of the Lonely Planet including the city among its top thirty destinations for ‘Best in Travel 2025’. Palma’s tourism councillor, Javier Bonet, responded to the Lonely Planet news by saying that the town hall was very grateful and satisfied with the recognition. He went on to reiterate the usual stuff about being a sustainable destination 365 days a year with “culture, gastronomy, sport and sustainability” as the main axes. Yes, but the point is that sustainability is being doubted, while there is a general acceptance that promotion is needed less and less. But this doesn’t stop the Lonely Planet or others who thrive on their lists of best places.
The Palma 365 strategy, launched in 2012, has of course always had tackling seasonality at its centre. In this regard it has been successful, and there is no sign of any let-up in the increase in the number of winter season tourists, however modest their number is relative to the summer. The Airlines Association has confirmed what was announced a few weeks ago by the association that coordinates flight slots in Spain – an increase in programmed airline seats for Palma from November to March. This is in the order of 600,000 – up to 7.8 million. A response to this was what about UK flights. The answer is not a great deal. The bulk of the seats are for the two main winter markets, Germany and Spain.
Christmas party – take the bus?
Higher prices for flights have of course been a reason cited by Mallorca’s restaurants for their apparent fall in turnover during the summer season – tourists have had less to spend once they arrive. Whether low-season tourists are similarly deterred from spending remains to be seen, but the main restaurants association is looking forward to a very good Christmas period – in Palma at any rate. Restaurants are being booked out for Christmas lunches and dinners.
Partygoers, whether at Christmas or other times of the year, can leave cars at home and take the bus (subject to night schedules, that is), especially as the bus is free. But for how much longer? As was the case twelve months ago, Palma Town Hall is not budgeting for free bus travel. Or rather, it is budgeting for a doubling of revenue because buses will not be free to residents in 2025, despite an estimated 15% decrease in passenger numbers. The town hall did change its mind and continued with free travel in 2024. However, it is repeating its complaint that the Spanish Government’s subsidy is insufficient – to the tune of seven million euros.
And on the buses away from just those in Palma, the Balearic Government reckons it will be increasing services by up to 50%. This will partly be because of an upward revision of investment in new buses but primarily because of amendments to bus operator contracts that will greatly increase the total number of kilometres they cover per annum. Which would be fine, were it not for the fact that the transport federation was saying last week that a serious problem is looming with regard to driver numbers. Let’s face it, if free travel were dispensed with, the current strains on bus services would be lessened. Between January and August this year, passenger numbers increased by 3.7 million compared with the same period of 2023 and when buses were already free to residents.
