New homes in the Balearics a fifth of what they were 20 years ago

In 2013, the licences granted were below 1,000; 986 to be exact. An explanation for the steep fall is pretty obvious. In the years up to 2007 there was a housing boom. Then came the financial crisis. Recovery stuttered in 2015, but eight years later it was still way lower than was required. The developers association has calculated that over 17,000 new homes are needed at present. And this is a number for a standard family and so doesn't take into account couples or single people.

Related news

Housing law makes access to affordable homes in Mallorca difficult

More related news

However, the boom and crash don't provide a full explanation. Sandra Verger, CEO of the Balearic Builders Association, argues there has been no one "specific cause" for the slump. But she nevertheless points out that recovery from the financial crisis meant a focus on "high-income housing". There was a lack of available land. Where it was available, the land was very expensive. Town hall planning procedures didn't help. As mainly large houses were being given permission, it was difficult for homes to be affordable.

Verger believes there should have been a tax stimulus - lower taxes for building affordable housing. She still believes this. Meantime, the price of building materials has risen sharply. All these factors continue to motivate the building of homes for people with high purchasing power.

Despite the apparent obstacles, Verger insists that the only way to address the lack of housing is get more homes onto the market. One way of doing this would be to expedite the processing of developable land. At present, this can take a staggering length of time - up to 15 years - when the aim should be to start building as soon as possible.