Majorca Daily Bulletin

News | Balearics

Government tries to put brakes on Balearic bonanza

FEARS THAT THE ECONOMY IS IN DANGER OF RUNNING AWAY WITH ITSELF

BY HUMPHREY CARTER
THE Balearics faces the danger of becoming overpopulated, with natural resources buckling under pressure over the next ten years and a clash of government policies adopted by the previous governing body, Partido Popular, and the present left-wing coalition goverment. One of the last desires of the ousted Balearic Chief Minister, Jaume Matas, was to see the Balearic population, which at present is an estimated 700'000, double over the next ten years, taking the population up to 1.5 million. The new left-wing government, led by Francesc Antich has only recently announced plans to provide funding so young Majorcans can buy their first home, while simultaneously implementing a general building freeze. Noises have been made in political circles for years about the number of empty and abandoned properties, in Palma for example, but old city centre houses and flats in need of renovation can hardly be expected to be bought as a first home by a young couple starting out in life. Where, in the immediate future,are the government subsidised new home owners going to live and where are the extra 700'000 new residents expected to house themselves over the next ten years? Demand for housing is going to reach a premium, as a result. The already inflated property prices are going to be bumped up even more with the wealthier new residents, more than likely from overseas and looking for a second home, being in a stronger financial position to make a purchase.

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