Chaos in Majorca as estate agents forced to close - 'there's nothing left to sell'

The property market in Palma is facing an extraordinary supply shortage, with multiple estate agencies reportedly shutting down because they have almost nothing available to sell. According to a recent report from the Spanish property website, Idealista, the number of homes for sale in Palma de Mallorca is currently at its lowest ever recorded, sparking what many in the sector describe as an unprecedented crisis. The Balearic Islands Association of Real Estate Agents (API) has confirmed that the crisis has already forced several estate agents to close due to a complete lack of listings.

José Miguel Artieda, President of the API, said: "We are experiencing an unprecedented situation; there has never been a supply crisis before." With so few properties available, competition among buyers is fierce and prices are climbing rapidly as a result of this.

The desire to own a home in Palma is slipping further out of reach for many locals, and the lack of supply, coupled with surging demand, has turned house hunting into an uphill battle.

While the region as a whole is still faring slightly better with housing stock 40% higher than the historic low of early 2014, the island's capital city is in a far more severe position.

In May, Natalia Bueno, ex-president of the API, who was an estate agent in Majorca for 35 years said she was leaving due to rising prices and overcrowding, the Majorca Daily Bulletin reported.

She said: "I'm suffering from real estate pressure, and buying a rural property is beyond my purchasing power. I'm also overwhelmed by overcrowding. So I'm leaving. I'm going to open an agrotourism hotel in Viveiro, Galicia."

She added: "You have to think carefully about where you go if it's a cloudy day. In summer, I know that if I don't make a reservation at a restaurant, I won't eat. Not being able to move affects your work and personal life.

"We can't limit the population, and as long as it continues to increase, housing prices will continue to rise. There are Germans who now buy apartments in Son Gotleu (Palma) as an investment. Their income is three times ours."

Several protests have been taking place recently across Spain and the Balearic Islands against the negative effects of mass tourism.

In June, thousands of local residents in Palma took to the streets calling for more affordable housing, citing being pushed out of the city centre, rising prices and living costs, overcrowding, and urging for a shift toward a more sustainable tourism model.