With notary information having indicated that foreign buying of homes in the Balearics has risen from what had been a typical 33% of all sales to 40%, there have once more been calls for restrictions. And once more, it is being pointed out that there is nothing a regional government can do to prevent this foreign buying.
In response to this increase and to the fact that in one municipality, Andratx, foreign ownership is as high as 45%, the Balearic Government has again stated it can do nothing to prevent foreigners from buying property.
European regulations currently do not allow for limitations to be imposed, sources at the regional ministry of housing adding that the government is working with European institutions to secure a special regime for the islands. Primarily linked to the transformation of the islands' economic model, work on this regime, the ministry notes, is being conducted "without playing with the expectations of the public".
"The government is analysing and monitoring all housing initiatives and policies that facilitate affordable housing, provided they are effective and technically and legally viable." Limiting purchases by foreigners is not legally feasible at this time because the EU guarantees the free movement of people and capital.
The government is requesting that Spain's National Housing Plan and the specific plan being developed by the EU show "special sensitivity and differentiated treatment" for limited territories, such as the islands, and that their "geographical and environmental characteristics" be taken into account, especially given the impact of tourism on the territory and housing policies.
By region, the Balearics tend to have the highest percentage of foreign buying, with Valencia and the Canaries in second and third. At a provincial level, Alicante (Valencia) typically has the highest concentration of foreign buyers - around 45% of all sales. The Balearics, somewhat confusingly, are treated as both a region and a province for the purpose of these figures.