Shocking warning from property developers as essential workers like doctors and police refuse postings due to sky-high rents

THE housing crisis facing the Balearic Islands is threatening to bring essential services to their knees, with a staggering 45,000 new homes needed within five years to prevent ‘total collapse’.

The stark warning comes from Joaquín Chinchilla, president of APROVIBA, a newly-formed association representing small and medium property developers across Mallorca, Menorca and Ibiza.

“We’re facing a serious illness that’s going to get worse,” Chinchilla told Spanish media. 

“There are already doctors, police officers and Guardia Civil who are refusing to come to the Balearics because rent costs more than their salary.”

READ MORE: House prices in Spain rise at biggest rate since 2007 due to property shortage and lower interest rates

The developer chief revealed that the islands currently face a deficit of around 18,000 properties, but this figure is set to explode as an ageing workforce retires across key sectors over the next five years.

“Many professionals will retire during this period and will need to be replaced by people who will have to come from outside, but there’s no housing to accommodate them,” Chinchilla explained.

The newly-created APROVIBA aims to give smaller developers a unified voice in negotiations with local authorities after years of being ignored.

Among the main obstacles developers cite are lengthy licensing procedures, spiralling construction costs and lack of access to bank financing. 

The association has criticised the regional government for failing to utilise existing tools, such as the Balearic Islands Housing Institute, to expand access to credit for hard-pressed workers.

READ MORE: Property prices keep breaking records on the Costa del Sol and across Spain – but where can you still get a bargain?

However, Chinchilla praised some recent policy decisions, including allowing taller buildings and reclassifying equipment land before touching rural areas.

“In the islands, starting with Palma, there’s still sufficient urban and developable land available as long as there’s coordination between town halls and the regional government. Touching rural land should be the last option,” he said.

The developer boss highlighted the potential of vacant properties as a short-term solution whilst new housing is constructed – a process that typically takes six to seven years.

“Although many are second homes, we need to analyse their distribution and study how they could be used temporarily. 

READ MORE: Raft of new property taxes to hit foreign buyers and tourist flat landlords to ease Spain’s housing crisis

“There are also many properties in the hands of banks that are unused,” he noted.

APROVIBA welcomed recent proposals from Prime Minister Pedro Sánchez to increase housing investment and permanently protect social housing, as well as plans to tax property purchases by non-resident foreigners.

“The islands have practically been put up for sale. What I don’t understand is why the regional government doesn’t declare the archipelago a stressed zone,” Chinchilla said.

The developers currently have around 1,000 properties under construction in municipalities including Manacor, Calvià and Palma, with prices ranging from €119,000 to €220,000, aimed at working families.

Despite these efforts, they warn that labour shortages and escalating prices threaten the viability of many projects. 

READ MORE: Brits buying property in Spain will pay double: 100% tax ‘designed to help Spanish buyers’

They’re also calling for strengthened municipal technical teams and the reintroduction of positive administrative silence measures to speed up procedures.

“We’re asking for solutions, not more diagnoses,” Chinchilla concluded. “The situation is very serious and we’re running late, but we’re still in time to solve it if we act with courage.”

The housing crisis has become one of the most pressing issues facing the Balearic Islands, with locals increasingly priced out of their own communities as property values continue to surge driven by foreign investment and tourism demand.