Mallorca debates limiting foreign home purchases pending EU approval

In a contentious debate in the Balearic Parliament, President Marga Prohens announced plans to explore a limit on the number of properties that foreigners can acquire in Mallorca, contingent on compatibility with EU regulations. She defended her record by citing a 34% decline in non-resident purchases since the former government took office. Critics from both the centre-right and left argue the measures are insufficient amid a housing crisis, where average prices have risen roughly 34% since 2023 and now stand at about €5,600 per square metre.

The Balearic Housing Observatory reports foreign buyers are paying as much as 80% more than domestic purchasers. Local activists claim holiday rentals and second homes are driving up costs, prompting street protests. Any ban would have to be justified as necessary and proportionate under EU free-movement-of-capital rules, while Brussels is reportedly working on broader reforms that could give regions more leeway on second-home restrictions.