≡-Mallorca, Menorca, Ibiza And Formentera Struggle With Housing Shortage As Forty-Five Thousand Homes Needed To Prevent Collapse In Spain – Viral of Today

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Home » Spain Travel News » Mallorca, Menorca, Ibiza And Formentera Struggle With Housing Shortage As Forty-Five Thousand Homes Needed To Prevent Collapse In Spain Thursday, June 26, 2025Authorities have raised a severe alarm regarding the housing crisis in Spain’s Balearic Islands, warning that essential public services could face collapse within the next five years unless immediate action is taken. With the demand for housing steadily outpacing supply, experts argue that constructing 45,000 new homes by 2029 is crucial to avoid further strain on the region’s already stretched infrastructure.Spain’s housing crisis has reached a critical point, especially in its most popular tourist destinations. Property developers are calling for urgent measures, warning that the lack of affordable homes is exacerbating social tensions and threatening the local economy. As the country registered a record-breaking 94 million international visitors in the past year, anti-tourist sentiment has grown, resulting in protests demanding action on housing and tourism policies. Many locals, frustrated by the rising cost of living and the influx of tourists, have taken to the streets, wielding signs demanding that foreign visitors, particularly from the UK, “go home.”The increasing popularity of holiday rentals is another significant factor contributing to the housing shortage. Many Spanish citizens argue that the growing demand for short-term rentals has pushed up prices, making it more difficult for locals to find affordable housing. With limited options available for long-term rentals, these developments are further exacerbating the issue, leaving many unable to secure permanent homes. Additionally, protests have emerged, urging government officials to implement drastic changes to the housing market. Key demands include reducing rent prices by up to 50% in high-demand areas and enabling locals to sign long-term rental contracts that would provide stability and protection from eviction.Among the hardest-hit areas in Spain is the Balearic Islands, with Majorca being the focal point of the housing crisis. The island is overwhelmed with second-home owners and holiday rentals, creating a competitive market that leaves locals priced out. In the third quarter of 2023, foreign buyers accounted for 31.93% of property transactions in the region. This influx of overseas investors has significantly increased property prices, making it even more difficult for residents to purchase homes. Reports have also surfaced revealing that approximately 235,000 illegal holiday lets were operating in the Balearics during the same period, further straining the market and driving up rental costs.The situation has become so dire that locals have reported being approached by property speculators looking to purchase their homes for foreign buyers. In one instance, a resident in Palma recalled how two well-dressed individuals knocked on his door, seeking to negotiate a deal to buy his apartment. These unsolicited offers reflect the extent to which foreign buyers are contributing to the displacement of local populations.The president of APROVIBA, a property developer association with operations in Mallorca, Menorca, and Ibiza, has issued a stark warning about the pressing need for new homes in the region. According to the association, the islands are currently facing a deficit of approximately 18,000 properties, and this gap is expected to grow significantly as Spain’s aging workforce begins to retire. Without the construction of 45,000 new homes by 2029, the Balearic Islands could face a total breakdown of public services, jeopardizing the quality of life for residents and tourists alike.To address the crisis, the Spanish government has already introduced measures aimed at increasing housing investment and imposing heavier taxes on foreign property owners. These initiatives aim to ensure that the local population benefits from the construction of new homes and that the housing market is not dominated by foreign speculators. Currently, around 1,000 new homes are under construction in the towns of Manacor, Calvià, and Palma, designed specifically for working families. These homes are being built at reasonable prices, ranging from €119,000 to €220,000 (£101,000 to £187,000), offering an affordable option for locals struggling to find housing in an increasingly competitive market.Despite these efforts, the scale of the housing crisis remains daunting, and many believe that more drastic measures will be necessary to avoid further escalation. As the pressure mounts on Spain’s government to take decisive action, the future of the Balearic Islands’ housing market and public services hangs in the balance. With the local population growing and the tourism sector booming, finding a sustainable solution to the housing crisis is now more urgent than ever.

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