“Intervening in the real estate market in the Balearic Islands will be a failure for economic recovery”





The Balearic Association of Real Estate Services (ABSI) has reacted decisively today to the decision to expropriate 56 homes from large holders: “At the worst moment the worst measure”. ABSI has been “categorically opposed” to this measure for various reasons, all of which are considered “very harmful” for the real estate market by predicting that they will generate legal uncertainty.

Likewise, from ABSI they recall that many holiday tourist rental homes have become residential rental in the face of the pandemic and, therefore, as the supply increases, rental prices have already been reduced. “If to this we add this new measure, with more supply and much cheaper, because the future tenant will not pay more than 30% of their income, the homes for rent will have to lower their prices,” they warn.

In sum, ABSI spokesmen denounce that it is a “very risky” measure that will increase mistrust and will have a very negative impact on the expected economic recovery. They also consider that this measure will reduce the investment interest of foreign capital in the Balearic community. “Intervening in the real estate market will be a failure for the economic recovery of our land and it is a measure that was born unsuccessful, as has happened in other European countries,” says the president of ABSI, Antoni Gayà.

Look for other solutions

From ABSI they insist on the need to build new official protection housing for social rent, but it must be done in a controlled and staggered manner or give financial aid to tenants, including tax incentives to owners. «We remember that the Government of the Balearic Islands promised to acquire land for social housing. In no case did the measure go through expropriation. We also understand that this measure directly collides with the right to private property, as recognized in the Constitution, “they recall.

Finally, from ABSI they point out that they are committed to finding a solution to the housing problem for the most vulnerable, but they emphasize that the solution should not be “in no case expropriation.”

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