Five years ago there was an enormous stockpile of unsold and unrented properties in Palma. At the time I remember thinking that the old saying of putting your money into bricks and mortar was no longer appropriate. How wrong I was.

Now, there is a major shortage of rentals homes in Palma and property prices have gone through the roof thanks to demand from across the globe. If you own a home in the centre of Palma, I am told, you are sitting on a gold mine. The transformation of the property market in Palma is now almost complete. There are far more people looking to rent a home in Palma than there are homes available. Some estate agents, I am told, have a waiting list just to be able to find a decent rental property. Even some of the more unglamorous parts of Palma are starting to enjoy the benefits of the housing boom. The other day an estate agent joked that years ago gold was a bank solid investment, now it is a penthouse in the centre of Palma!

Our capital city was recently voted the best place to live in the world so it is not difficult to see why there is so much demand for so little property. In fact, the city council are thinking of introducing legislation which would seek to stem the flow of tourist reentals. It is quite amazing how Spain has recovered from the recession. Five years ago the future was not bright. Now Palma can look to the future with confidence and those who own property are laughing all the way to the bank.

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Henry James / Hace over 4 years

What an appalling viewpoint. So you like living in a city full of spivs, speculators and rich foreigners,where local,hard-working people can't even afford to rent a home in their own city,including policemen,nurses,firemen,ambulance men and women,essential emergency workers, You are welcome to it and them.

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Simon Tow / Hace over 4 years

Jason, people who buy a property, in Palma or elsewhere, generally buy it to live in, not to rent out. The ones who buy to rent out are not particularly concerned if the general public have access to a roof over their heads which is why rents are increasing due to their take it or leave it attitude. This also creates a high demand for suitable LONG TERM rental properties as investors who, incidently are the only ones laughing all the way to the bank they already have a lot as the others are paying mortgages, are far more interested in short term ones, something that the Palma and the local government are trying to do something about.

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