Natalia Bueno, President of the College & and Association of Real Estate Agents, or API, in the Balearics told delegates at the first real estate training conference yesterday that a 30% drop in prices in Palma city centre and a decrease of between 10% and 15% in other parts of Majorca was needed to alleviate the housing problem.
She also said “house prices have reached their ceiling and have already started falling and that will become more obvious later in the year because bank financing has slowed down and 100% financing is no longer available and buyers are being asked to provide more security for loans.”
Natalie Bueno also pointed out that “the population will continue to grow in the next 15 years and there is just not enough supply for so much demand,” and suggested that “to increase the existing housing stock, smaller homes and higher buildings might be better suited to the Balearics.
Other measures that have stood out as necessary, along the lines of what the Government is already promoting, are the “increase in public housing” and the “housing and rental aid.”
The Vice President of API in the Balearics, José Miguel Artieda, said “the administration should allow office premises to be converted into residential homes.”
Natalia Bueno acknowledged that the cost of renting has decreased except for properties that cost between 700 and 900 euros a month because of the lack of supply and growing demand and said “renting or buying a home are both still good options because if prices continue to fall it is a good time to sell and the amount of profit that can bmade from rentals is around 4%.