Housing issues are not exclusive to the Balearics, but also significantly affect other Spanish regions such as Catalonia. The Catalan government has announced plans to address this crisis by exploring "the most appropriate way" to limit property purchases for speculative purposes during the first quarter of 2026.
A dedicated Commission to study speculative housing purchases has been established, with participation from the Comuns political group and various experts. The commission's findings will be presented before the end of 2026 and must analyse the measure's applicability, required regulatory framework, implementation timeline, and potential market effects. Additionally, during the first quarter of 2026, discussions with parliamentary groups will take place to secure support for the proposal.
Salvador Illa's government intends for these restrictions to be temporary, geographically limited to tense market areas, and primarily tied to residential rental usage. This raises questions about whether similar measures could be implemented in the Balearics, prompting consultations with several experts in the field.
Legal challenges ahead
Alejandro Del Campo, a lawyer at DMS Legal specialising in property taxation, is unequivocal in his assessment. "The measure in question not only seems unconstitutional to me, but clearly contrary to European Union law, particularly regarding the free movement of capital, considering that property investment is a capital movement and any restriction on such movements is prohibited not only between EU member states but also with third countries."
José Miguel Artieda, president of the Balearic College of Property Agents (API), expresses similar concerns. "It's a clear interference with property rights, something that should be unconstitutional, but which the unfortunate State Housing Law, approved by a minimal majority, suggests might be possible."
In his view, "property rights should guarantee the use of the object (property) as long as laws are complied with - that is, using it for what it was created for, and within the limits of ownership, one should be able to do what suits them best provided it adheres to the law."
Impact on rental markets
When asked about the potential effects on the rental market, Artieda responded that the impact would be "negative for two reasons. One is the improper and undesirable nature in a democratic state of having government oversight of private property. The other is that it discourages investment from those who might later put products on the rental market."
Daniel Arenas, president of the Balearic Association of National and International Real Estate (ABINI), considers that "the proposal to limit house purchases to curb speculation is, once again, a misguided measure by the Catalan Government. This type of intervention in the private property market typically generates negative effects: many owners choose to withdraw their properties from both sale and rental, reducing available supply and making it even more difficult for residents to find rental housing."
From his perspective, "when the market is artificially restricted, the immediate result is reduced availability of flats and, consequently, price increases." Arenas asserts that "what would truly be effective would be boosting supply: building more affordable housing, promoting officially protected housing, and facilitating the incorporation of new properties into the market. Only by increasing supply can a real and sustainable reduction in prices be achieved."
Economic consequences
Pau A. Monserrat, member of the CES, professor at UIB and economist at Futur Legal, maintains that such measures "would be counterproductive for the Balearic economy." He argues that "expecting that preventing people from buying property for investment will suddenly make everyone with houses rent them at affordable prices is a mistake."
In this regard, he insists that "what governments should do is not prohibit, but facilitate the construction of houses at the lowest possible cost and generate a well-managed social rental housing fund." Monserrat criticises that "announcing the prohibition of purchasing for investment purposes amounts to political slogans to attract votes and is completely outside our legal framework."
In his view, "it perpetuates the same error made by left-wing politicians, who believe that investors who acquire housing to later rent it out are the villains, when in reality they are part of the solution. What we need is more supply for both renting and selling."