The senator for Ibiza and Formentera, Juanjo Ferrer, has urged political forces to reach an agreement to promote measures that limit the purchase of homes by non-residents in the Balearics. According to a statement, these acquisitions exacerbate real estate pressure and drive ‘thousands of citizens’ from their own territory.
Ferrer reiterated that partisan differences must be set aside and that everyone must work together to guarantee the right to decent and affordable housing. ‘We need firm measures to curb massive purchases by non-residents,’ he insisted. The senator recalled that he had already presented a proposal to this effect. Now, he has insisted that 30 per cent of real estate transactions in the Balearics are in the hands of foreign buyers, linked to investments in tourist rentals or holiday homes.
He has also called for Spain to ask Europe to create a specific legislative framework that would allow stressed island territories to apply ‘temporary but forceful’ restrictions on the purchase of homes by non-residents. Foreigners account for almost 30% of total home purchases in the Canary Islands and the Balearics, according to a report prepared by Asufin for its “VII Annual Congress”, which also shows that in the Valencian Community the figure reaches 28% and in Murcia, 22%, while there are five autonomous communities that are below 4%, with Extremadura at 1.58%.
Investment is the main reason in 65% of cases that leads home buyers to apply for a mortgage.
The new Asufin report also includes data on new housing coming onto the market, which accounts for only 15% of the total. Of the nearly 48,000 housing transactions recorded by the INE, approved new construction permits amount to just over 7,500.
The average cost of mortgages currently being granted is 3.12%, with fixed-rate mortgages being the cheapest, at an interest rate of 2.87%, and variable-rate mortgages being the most expensive, at an average of 3.38%. Meanwhile, mixed mortgages, which burst onto the market in response to the rapid rise in interest rates over the last two years, stand at 3.22%.
As a result of the mortgages being taken out, linked to the high price of housing, average mortgage payments already account for 35% of salaries, rising to 58% in the case of young people up to the age of 24. In the 25-35 age group, the figure rises to 40%. This impact has increased significantly since 2021.