The government of the Balearic Islands recently announced that it wants to impose restrictions on the sale of real estate to non-resident foreigners, following the example of Canada. To this end, the regional authorities have created a commission to study the possibility of implementing this ban.
The initiative is connected with the fact that there was a rapid increase in real estate prices in this region of Spain by 44% in 24 months.
However, the law firm, which, at the request of the Business Association of Developers of the Balearic Islands (PROINBA), analyzed the legality of the proposed measure, concluded that it contradicts the Treaty on the Functioning of the European Union.
According to property registrars, in the fourth quarter of 2022, it was in the Balearic Islands that the share of foreigners among real estate buyers was the highest - 36.15% (that is, in the period from October to December, foreigners carried out 36 out of every 100 housing purchase and sale transactions in the region). This is followed by the Valencian Community (28.47%), the Canary Islands (27.25%) and Murcia (21.87%), while the national average was 14.7%.
As for housing prices, according to Idealista, the Balearic Islands are considered the most expensive region in Spain. In January, the average cost of real estate on the secondary market was 3647 euros per sq. m.