Panic in Majorca as expats snub island in holiday home crisis

Port de Sóller in Mallorca (Image: Getty)

The increasing price of housing on Spanish islands beloved by British tourists and expats may be impacting luxury property sales - and triggering a drop in foreigners buying flats and homes. The first quarter of the year saw foreign purchases drop to 30%, representing the lowest share of total sales since the Covid-19 pandemic, according to statistics from Spain's Association of Registrars, as reported by Majorca Daily.

It's coincided with a steep rise in property prices in the Balearic islands including Majorca with estate agents warning for months that the increases are putting off potential foreign buyers. According to the Association of Registrars, which brings together the country's property, commercial and movable property registries, the average price per square metre in the islands topped £3,800 for the first time at the end of March.

The Spanish English language newspaper noted that there are over 19,000 detached houses and villas for sale in Majorca, one of the most popular islands, of which a third (6,200), are on the market for more than €1million (£842.75k), citing Spanish property portal Idealista.

Majorca has long been a beloved travel destination for British tourists (Image: Getty)

The first quarter of this year saw a 2.78% decrease in foreign buyers compared to the previous quarter, though 20% of the 3,898 total purchases made in the first were single-family homes, with people from overseas buying most of them.

However, the share of foreign buyers has been high over the past decade, and it's not clear whether the slight downturn is a trend that is set to continue.

In the past 10 years, overseas buyers have represented between 29% and 35% of sales in the Balearics, the Registrars data shows, as per the outlet.

It comes amid growing anger in Spain over the impact of tourism, including on the cost of living - and particularly on property prices.

Demonstrations have taken place in various Spanish cities in recent months, including in Majorca.

In Barcelona irate locals were even seen spraying tourists with water pistols last year, as fury over the issue exploded.

Marches look set to continue, with activist groups across the country, and southern Europe, bracing for what's being described as "an unprecedented mobilisation" on June 15.

Authorities across Spain have responded to the demonstrations by introducing various measures to crack down on visitor numbers.

Some areas have brough in tourist taxes while other cities are looking to dramatically reduce the number of holiday lets in a bid to manage tourism and make it more sustainable for the country and its residents.

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