The Balearic Government has firmly rejected capping housing prices in Esporles despite the town council's recent vote to declare the municipality a tensioned housing market. Antoni Costa, Vice President and spokesperson of the Balearic Government, stressed on Friday that although the town hall has the autonomy to adopt motions it deems fit, the passed resolution remains solely a "political statement" without legal binding effect.
Esporles’ self-declaration as a tensioned zone carries symbolic weight but does not compel the Government to impose price limits. Costa was unequivocal in stating they have no plans to implement such controls. This stance aligns with the Balearic Government's (PP-led) longstanding opposition to price capping policies, which they view as interventionist and "counterproductive." According to him, measures to fix maximum prices "are populist" and, while potentially appealing to the public, "discourage supply and further increase prices." He concluded, "We respect what the town hall has chosen to do but this measure cannot be endorsed by this Government."
Esporles town hall approved the motion presented by the Pas-Més group, which includes mayor Josep Ferrà, to "institutionally self-declare the municipality as a tensioned residential market area across the entire municipal territory, based on criteria set out in the State Law 12/2023 on the right to housing." This law defines tensioned zones where housing costs exceed 30 percent of household income or where prices have outpaced the consumer price index (CPI) in recent years. Although this framework enables rent price growth caps, the authority to enforce such measures rests with the autonomous community.
The Balearic Socialist party proposed a law in the Balearics to allow municipalities to bypass Government intervention, but it is unlikely to pass. In response, the political left is pursuing motions at local levels to symbolically support these policies. Similarly, Arta approved a comparable motion this week, aligning with Esporles’ approach. These local initiatives highlight ongoing tensions between municipal ambitions and regional government policies regarding housing market regulation.