The Balearic Association of National and International Real Estate Agencies (Abini) has rejected the proposal to be debated next week in the regional parliament to restrict home purchases by non-residents. The association has warned in a statement of the economic and legal impact of this measure, while calling for the unblocking of the Strategic Residential Projects (PRE) decree law to promote the construction of some 10,000 affordable homes in Palma.
The association has accused the Més per Mallorca party of ‘seeking easy headlines instead of real solutions to the structural housing problem in the Balearics’ and has stressed that adopting restrictions on buyers ‘does not create a single additional home’.
The president of Abini, Daniel Arenas, has acknowledged that demand from non-residents, including residents of the mainland, may affect prices, but explained that ‘it is by no means the only factor’, as the root of the problem lies in the fact that for 25 years the supply has not increased at the same rate as population growth.
He also warned that focusing the debate on limiting buyers’ options diverts attention from the accumulated supply deficit. The association has also warned that reducing real estate activity would affect the entire construction and renovation sector on the islands, including builders, architects, quantity surveyors, engineers, developers, notaries and law firms, among other professionals.
“Slowing down the market does not reduce the need for housing. It simply paralyses economic activity and employment,” said Arenas, who also questioned the legal viability of limiting purchases based on residence or nationality. As an alternative, the association has called for the withdrawal of the appeal filed with the Constitutional Court against the Decree Law on Strategic Residential Projects, which stipulates that 50% of homes in new developments must be allocated to residents. “Blocking the decree will only serve to delay the release of thousands of affordable homes onto the market. The Balearic Islands need more supply, more legal certainty and more management,” Arenas pointed out.