The Balearic Islands propose to «limit the purchase of real estate for foreigners» in the región

The regulatory climate where the Spanish real estate market exists is still characterized by a complete lack of respect for private property.

However, there are big differences in the issues of legislative regulation of the market between the regions.

There are territories like Madrid that support a policy of free supply. At the same time, regions such as Catalonia insist on price regulation and are tolerant of squatting.

The Balearic Islands are one of the regions with the greatest tendency to regulate the sphere of housing construction. The government of this region even decided to expropriate dozens of properties in order to remove apartments from the speculative free market.

At the same time, restrictions were introduced for tourists to rent apartments. Despite the fact that prices in this segment continue to grow (approx. which is certainly beneficial for sellers), the authorities of the Balearic Islands cannot ignore the main problema, such as the lack of supply.

This week it became known that the local parliament approved the project submitted by a group of legislators from the coalition Més per Menorca. Lawmakers are calling on the government of Francine Armengol to limit the sale of housing on the island for foreigners.

During the year, the working group will study the existing market regulations and, as a result, will propose a list of relevant reforms.

Data obtained by the end of 2021 show that 39% of all purchases of residential real estate on the island were made by foreigners. Of course, this percentage is higher in this region than in areas with less tourist attraction, but this indicator does not deviate from the national average. Similar indicators can be observed in other Spanish regions, such as Alicante and Malaga.

In addition, it was announced that a «full index of rental housing costs» will be created, as well as a «register of vacant housing».

Apparently, the local authorities are going to move along the same path that Catalonia is following, i.e. a region that started with the same regulatory decisions.