The Covid pandemic has had a massive impact on holiday homes in the Balearic Islands. Demand in urban areas has plummeted and demand for properties in rural areas has soared, according to the Spanish Housing Federation President, Told Gomila.
The III Illeslex Lawyers Forum in Palma which is being held in collaboration with the Cercle d 'Economia de Mallorca addressed the complementarity of holiday apartments and traditional hotel holidays.
“Holiday homes represent 33% of all tourist accommodation, but the pandemic has caused a big decrease in demand in urban centres, whereas there’s been considerable interest in properties in rural areas,” said Gomila. “This indicates an evolution in demand and in the model itself.”
“The pandemic has shown that the traditional tourism model no longer has a route, because it has not allowed it to develop and demonstrates its fragility in an adverse situation,” said event organisers, Guillermo Dezcallar & Blas.
"From now on a complementarity should prevail between the different vacation segments because the pandemic has made us work as a network and as a team," said Dezcallar.
Supply reduction
"Housing for tourist use is in a phase of decline because of the current legislation, taxation, safety ratios and lower profitability,” said Gomila. “The zoning imposed by the Consell de Mallorca and Palma City Council’s decision to ban it creates confusion and uncertainty.”