Who is taking away Mallorca's housing? Foreign owners as a focal point

Who is taking away Mallorca's housing? Foreign owners as a focal point

Guiding question: Who owns the island — and what does that mean for the people who have to live here?

The Spanish cadastre shows a clear picture: in some municipalities well over one third of apartments are owned by people without Spanish nationality. Places in the southwest of the island are particularly striking: Andratx is around 45 percent, Deià about 44 percent, and Calvià exceeds the 42 percent mark. Municipalities such as Fornalutx, Capdepera or Santanyí also report values beyond one third. In total, approximately 92,000 apartments on the Balearic Islands belong to foreigners, which is just under 16 percent; on Ibiza the share is closer to 19 percent, and in a few places about a quarter of the stock.

Critical analysis: Why these figures are more than just statistics

The raw percentages are disconcerting because they have a direct effect on availability and prices. If a high share of the housing stock is used as second or holiday homes, stands empty or is marketed internationally, the housing available for people who work and live permanently on the island shrinks. Structural factors add to this: island location, tourist demand and limited building land already create strong pressure on rents and purchase prices. Economic assessments show that households often have to spend a far too large share of their income on housing and that many apartments can only be financed with unrealistically high annual incomes. This explains why families, young workers and many employees in key sectors can hardly find a normal apartment anymore.

What is often missing from the public debate

The debate too quickly focuses on the foreign scapegoat: “The foreigners are to blame.” That is too simplistic. What is missing is a sober breakdown of causes: Which purchases are pure capital investments, which are genuine residential use? How many units are permanently empty? What role do large investment funds play versus private buyers from other EU countries? And — often overlooked — how have municipal planning, tax rules and the loss of price controls on subsidized housing over the years contributed to the current situation? Without these questions the discourse remains political but not actionable.

Everyday scene: One street, one problem

Early on a Saturday morning in Carrer de Sant Miquel in Palma: delivery vans rumble by, a bakery smells of freshly baked ensaimadas, and two young care workers discuss why they are moving in together because single rents are unaffordable. A few side streets away an apartment stands empty, used by its owners only a few weeks a year. This contrast is no coincidence, it is everyday life: lively jobs and empty beds in a confined space.

Concrete approaches — pragmatic and local

There is no patent solution, but several levers that should be turned together. First: create transparency — municipal registers on actual use (permanently occupied, holiday rental, vacant) would clarify where the need for action is greatest. Second: strengthen occupancy ties — where subsidized housing was created, rules on price binding must be consistently monitored and adjusted in case of contract breaches. Third: promote cooperative models — public, non-profit and private actors should form partnerships so that new construction or renovations meet not only return requirements but also usage and availability criteria. Fourth: incentives instead of bans — short-term purchase bans are legally difficult within the EU; clearer incentives for long-term rental to locals or lower tax rates for permanent residential use would be more practicable. Fifth: complementary measures — better public transport, targeted support for professions with critical needs (care, trades, education) and flexible land-use strategies that favour inner development instead of sprawl.

What needs to happen now

Decision-makers in the Balearics know the problem; the challenge is to act precisely. Instead of catchy blame games, coordinated instruments are needed: reliable data, legally sound subsidy models and controls as well as an active housing policy at municipal level. The public sector's revenue and expenditure situation is limited — therefore cooperative models with non-profit housing associations and responsible investors are a realistic pragmatic path.

Punchy conclusion

The cadastre figures are warning lights: a high share of foreign ownership makes the housing issue more visible, but it is only part of the problem. Anyone standing at a window in Palma, Andratx or Deià at night and seeing the lights in vacant holiday apartments knows that this is about much more than origin. It is about everyday life, work and the long-term viability of island society. If politics and society act soberly and bravely now, the worst consequences can be averted — otherwise neighbourhoods and villages will change not only economically but also socially.