According to Pedro Berruezo, the general secretary of the UGT's union of pensioners, the high cost of living in Mallorca is scaring away European retirees.
Before the pandemic, Mallorca was a popular choice for spending retirement years. As well as the good weather, housing and shopping were generally cheaper. "The cost of living in Mallorca, including housing prices, was lower than in their home countries. Therefore, they could live very comfortably on the island with their pensions. They would buy an apartment and spend a few months here, especially during the off-season, to escape the cold, snow, and rain back home."
Although official statistics do not include data on the number of European retirees residing in Mallorca, Berruezo adds: "You only have to walk around certain areas of the island, such as Playa de Palma, Calvia, Cala d'Or or Can Picafort, to see it for yourself." There are fewer pensioners from the UK, Germany and other countries.
While the cost of living has also risen in these countries, Berruezo believes the increase has not been as high as in Mallorca. "There has been a change in trend. Only the wealthiest retirees are now coming."
The president of the ABINI association of national and international real estate agencies, Daniel Arenas, agrees with Berruezo. He points out that housing developments were even built specifically for retired people in areas like Santanyi and Cala Rajada. "There used to be apartments or townhouses of 70-80 square metres with two bedrooms that sold for 300,000-350,000 euros."
But over the past five to six years, house prices have increased by between 25 and 50 per cent. Food prices have also risen 30-40%. Dining out is that much more expensive. All this means that European pensioners can no longer live as comfortably in Mallorca as they did a few years ago. Given this situation, Arenas explains that many European pensioners are selling their homes and are moving to the Costa del Sol or the Costa Blanca.