According to the Proinba association of property developers, there was a 25% decrease in the number of new homes built in Majorca last year. In 2016, there were 1,318; in 2017 the number was 988. Luis Martí, the president of Proinba, says that this decrease was despite the fact that there was an increase in the number of building licences that were requested. He therefore attributes the drop to "long delays" in the processing of licences: this can take on average a year but can in fact lead to delays of up to four years.
Current building activity is not meeting the high demand for housing, especially in Calvia and Palma, where the stock of new properties has been exhausted. The Proinba vice-president, Oscar Carreras, explains that where there is activity, it is not producing homes at affordable prices. Land is becoming ever more scarce and local authorities are not making land available in order to facilitate the building of affordable homes.
He insists that there has to be "rational and efficient" use of resources in the medium to long term in order to ensure the availability of decent and affordable housing in the future. The developers and the builders want to be able to use what land there is to build small flats that can meet demand.
They say that a "perfect storm" is brewing unless there is more rational use of resources. Prices of housing are increasing, both for purchase and for rental, although the developers are cautious in describing the situation as a "bubble".
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New build homes shortage - due to demand for rental, prices of rental flats will continue to boom