The Balearic Builders Association calculates that Palma currently needs 12,000 affordable homes and that only 200 are being built - 1.67%. Affordable housing is taken to mean a price of around 250,000 euros. This is a figure that is also inaccessible to many people, but it is practically impossible to find anything cheaper.
The association's manager, Sandra Verger, says that there is hardly any affordable housing in Palma. There are luxury houses or flats and the public sector is building VPO social housing properties. However, the cost of the former and the requirements for the latter exclude whole sectors of the market.
With Palma's general plan being updated, Verger is urging the administration to increase the buildable index - in other words, more homes can be built in less space.
There are three key reasons for the high prices, argues Verger - limited land, the level of demand from foreign buyers with greater financial wherewithal, and a shortage of building materials.