A property crisis battle has exploded in Majorca with over 60 locals competing with each other for every property that hits the market. The holiday hotspot is facing an extraordinary supply property shortage leading many locals to pull their hair out as they frantically search in a saturated market for somewhere to live.
Majorca’s capital Palma is the second city in Spain where competition for each rental property has increased the most, with 62 applicants per advertisement in the third quarter. This is a whopping 22% more than a year ago, according to a new study by the real estate portal Idea. Not only this but locals face being priced out as property prices in Palma have skyrocketed by approximately 9.4% in the past year, reaching an average of £3,098, $4,144, per square meter.
Sant Jaume, an elegant, historic neighborhood in the Old Town of Palma, is the capital’s wealthiest neighbourhood, according to the Tax Agency’s statistics on income tax filers by postcode.
Renowned for its high-end luxury shopping, boutique hotels, and proximity to key monuments like the Cathedral and Royal Palace, people who live here have an annual income of £60,384.90, €69,523, 8.2% more than in 2022.
Whilst El Arenal, A high-octane village situated on the south coast of Majorca ranks bottom of the income ranking for the entire municipality with just £ 22,246 ,€25,607, per year.
This means residents of El Arenal earn 63% less than those of Sant Jaume.
Meanwhile, in the Balearics, each rental property advertisement published on this website received an average of 36 enquiries in the third quarter, 12% more than last year.
Bilbao, the largest city in the Basque region, has seen the largest increase in property competition at 49%. Often dubbed ‘the City of the Guggenheim,’ Bilbao promises to be a walker’s paradise, thanks to its remarkable pedestrian-friendly layout.
Coming in second place is Palma (22%) and Alicante (19%). Palma is the largest market where competition for housing is greatest, with 62 families per advertisement. It is followed by Barcelona (58), Madrid (46), Bilbao (42), Málaga (33) and Valencia (32).