The cost to rent in Palma and elsewhere is a question of supply and demand. | Alejandro Sepúlveda


The Podemos proposal for a government-run agency for property rentals has been met with outright rejection by the college of real estate agents (API) and the association of property administrators.

Both entities agree that the proposal would not lead to a reduction in rents and that "huge amounts of public money" would be allocated to tasks that the private sector is already carrying out. The administrators' president in the Balearics, Toni Jaume, says that there are institutions, in the Balearics and other regions, that have set up schemes of a similar nature and which have been "a failure".

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The API points out that Podemos have already launched a scheme of this type at the Council of Minorca. The housing councillor, Cristina Gómez, has described this as a "great success". However, the programme of 'ethical renting' has thus far cost the Council hundreds of thousands of euros. So few have been the rental contracts that the scheme has cost Minorca taxpayers some 10,000 euros for each contract.

The college adds that the scheme is nothing more than a website that is not very operational and direct aid for owners, who are financed by rates and insurance in exchange for accepting prices that are not always below the market- "up to 650 euros, which in Minorca is a normal price".

"This 'great success' is a model that is not efficient or agile and will not affect rental prices." High costs to rent, the API continues "are simply explained by excess demand relative to available supply". "Real estate agencies' fees do not make prices increase, as these represent 1.5% of the total cost based on a whole series of services. Real estate companies are not responsible for the increase in housing prices. Some of the policy initiatives we've heard about in recent weeks will indeed increase prices. Political parties should listen to those who know the housing market and its dynamics instead of making proposals from an ideological perspective without having any knowledge or ability to understand the consequences of their proposals."