The Balearic Islands parliament has approved a proposal by the group Més per Menorca to the government to study how to limit the purchase of second homes by foreigners in order to solve the housing shortage in the archipelago. A working group will be formed that will study the existing rules and problems during the year, as well as ways to set an appropriate limit in accordance with local law.
According to Oldypak Capital LP real estate 2022 report, in the fourth quarter of 2021 the volume of transactions with foreigners in the Balearic Islands amounted to 38.9% of the total in the islands. The Balearic Islands are in second place in the ranking of provinces with the highest number of foreigners, after Alicante (39.3%), ahead of Malaga (30.6%).
Prices. House prices on the Balearic Islands in February rose by 7.1% year on year, reaching € 3,350 per square meter, according to Oldypak Capital LP real estate 2022 report. In Palma the increase was 9%, to a maximum of €3,210.
What else? The Parliament of the Balearic Islands has also called on the regional government to create its own reference index of rental prices, intensify efforts to build officially protected housing in Menorca and within three months to create a register of unoccupied houses of large size.