Majorca's Soaring Property Prices Squeeze Out Locals

Majorca's popularity as a tourist destination is driving up property prices, making it increasingly difficult for locals to afford second homes on the island, according to Ignacio Fiol, the CEO of AB Capital, a Majorcan company. Earlier, residents could afford to buy a second home on the island, but prices have now increased substantially. Fiol states that in Colonia Sant Jordi, a 50-square metre apartment is being sold for 300,000 euros, which he finds unreasonable.

The high demand for properties, especially in tourist areas, has led to a situation where many properties have been in limbo for years, with large numbers of them unavailable for local residents. The spread of holiday home listings is angering locals and hotels. As a result, many Majorcans have given up on the idea of owning a second residence on the island due to the high prices and the influx of 'foreign capital.'

Why this matters: The impact of tourism on local housing markets is a growing concern in popular destinations worldwide. As property prices soar due to demand from tourists and investors, it becomes increasingly challenging for local residents to find affordable housing options, potentially altering the social fabric of these communities.

The Balearic government is considering scrapping the environment commission, raising questions about the rigour of impact assessments for new developments. To address the housing issue, Fiol's company is planning to develop a project in Cantabria, northern Spain, where they will build 24 houses that will preserve the character of the environment, offering a better quality of life compared to Majorca.

The situation in Majorca reflects a broader trend in Spain's holiday hotspots, where the influx of tourists is causing significant issues for local residents. Several provinces have implemented strict rules and guidelines to manage overcrowding and associated problems. In the Canary Islands, locals have protested against the waves of UK tourists, calling it an 'invasion' and asking them to 'go home.' Residents complain about Brits buying up homes despite low wages and a lack of properties to rent, with some even living in caves.

Measures taken by local authorities to control the impact of tourism include issuing fines for certain behaviors, limiting the number of tourist accommodations, and restricting the number of hotel beds and cruise ships in certain areas. In Majorca, new rules have been implemented to curb drunken tourism, such as banning shirtless, costumed, or football shirt-wearing travelers from certain restaurants.

Jorge Marichal, president of the regional hotel association ASHOTEL, expressed sympathy for the locals, stating that the tourist model has changed due to technology and platforms like Airbnb, leading to a growth in tourist accommodation that has not been matched by investment in infrastructure. The Spanish government has hinted at a crackdown in response to the unrest, with Housing Minister Isabel Rodriguez acknowledging a shortage of 1.5 million public housing units.

Key Takeaways

• Majorca's property prices have soared, making it hard for locals to afford second homes.
• The high demand for properties in tourist areas has led to many being unavailable for locals.
• The Balearic government is considering scrapping the environment commission, raising concerns.
• Spain's holiday hotspots face issues with overcrowding and locals protesting against tourists.
• Authorities are implementing measures to control tourism impact, including fines and accommodation limits.