Overview of the Housing Deficit in the Balearic Islands
The article, published by Menorca – Es diari and written by journalist Pere Cerón, details a severe shortage of roughly 17 000 homes in the Balearic Islands. This shortfall results from a mismatch between population growth (up 46.3 % between 2000 and 2025) and the construction of new dwellings (up 31.5 %). The deficit is highlighted by the regional Housing Observatory (OVIB) as a key indicator of structural imbalance in the local housing market.
Current Housing Stock and Construction Trends
In 2025 the total residential stock stood at 618 908 units, with apartments accounting for 66 % of the market. New construction rose by 18.62 % in the same year, delivering 2 452 new flats, yet this increase remains insufficient to close the 17 000‑home gap. The number of existing buildings predating modern energy‑efficiency standards is 56.4 %, and 83.4 % of energy certificates rate properties as E, F or G, underscoring the need for sustainable retrofits.
Planned Affordable Housing Initiatives
The Balearic government plans to deliver more than 10 000 affordable homes, currently at 10 006 and still rising. Specific programmes include Law 3/2024 (emergency housing decree), the “Construir per llogar” scheme (approximately 4 400 affordable units), over 1 800 public homes from the Institute of Balearic Housing (IBAVI), and around 4 000 units under strategic residential projects (PRE). Since 2023, over 34 000 people have benefited from various housing aid programmes, such as rental subsidies, energy‑efficiency upgrades, tax incentives and the “Nova Hipoteca Jove” for young buyers.
Price Gaps and Market Distortions
Data from 2025 reveal that advertised prices on online portals exceed actual sale prices by more than 38 %, reaching nearly 40 % in some calculations. Spanish buyers paid an average of €304 120 per home, while foreign purchasers paid €548 662, a difference of 80 % (€244 542). The overall average price across the islands is €396 165. The government argues that its affordable‑housing projects are priced roughly 30 % below real market values.
Tourist‑Rental Impact on the Housing Stock
Between 2015 and 2022 the number of licensed tourist‑rental properties more than doubled, from 11 403 to 26 492. A slight decline of 349 units (‑1.3 %) occurred from 2022 to 2025, leaving 26 143 tourist rentals, which represent 4.2 % of the total housing stock. Listings for tourist rentals fell by 12.6 % in the same period, reflecting regulatory and market pressures.
Energy Efficiency and Renovation Efforts
The ageing building stock, with the majority constructed before modern energy standards, suffers from low efficiency. Around 15 000 energy‑efficiency grants have been funded through EU Next Generation funds, supporting the regional plan for sustainable renovation. These measures are integrated into the 2026‑2030 State Housing Plan, aiming to improve the energy performance of existing dwellings while expanding the overall housing supply.