Officials in the Balearic Islands want to ban foreigners from buying secondhomes there as it is driving property prices up and pushing local people out.
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Property prices have been soaring on the islands of Ibiza, Majora and Menorca leaving many of the villages full of empty houses for most of the year and locals have had enough. If the ban were introduced it would make it impossible for non-residents to buy properties in the Spanish archipelago.
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Juan Pedro Yllanes, the Balearic vice-president, is one who has called for a ban stating that, as per The Telegraph, ‘we should follow Canada's example.’ Foreign investors are banned from buying properties in Canada after a ban was announced in April 2022 lasting for two years.
He went on to call on the Spanish government to put pressure on the European Union to recognise that the areas should be protected. The ban itself would not be compatible with EU laws on free movement within the bloc unless it is a recognised area of cultural significance or natural beauty that should be protected from excessive outside pressure.
The Balearics authorities also want Madrid to help control house prices by designating the islands a ‘stressed area’ - where rent mortgage costs exceed 30 percent of the average local salary.
The village of Deià
The village of Deià in western Mallorca is a picturesque village that forms part of a Unesco world heritage site and has long been a favourite of visiting British tourists.
It now has property prices that are considered to be the second most expensive in Spainat€6,091 (£5,405) a square metre, and cosy two-bedroom houses in the village for €1.6m. The surge in prices is due to foreign buyers with 38.95% of purchases in the Balearics being bought by non-residents in 2022.
In Deià there are 700 homes, of which 200 are empty and 23% of all properties are owned by Brits, and even billionaire Richard Branson is reported to have a home there, as per The Guardian.
Restrictions on foreigners buying property already exist in Europe with both the Aland Islands in Finland and Croat imposing strict criteria on who can buy a second home there. If similar requirements were introduced in the Balearics, it is hoped it will bring down rents and bring a sense of community back into the villages.
Sources used:
- The Telegraph 'British face Balearic Islands holiday homes ban'
- The Guardian 'Balearic Islands seek to ban non-residents from buying property'
