Riot in Mallorca: Game of Homes” billboard provokes locals!

Riot in Mallorca: Game of Homes” billboard provokes locals!

A new billboard from a real estate company in the municipality of Calvià in Mallorca is causing outrage among locals. The slogan “Game of Homes” is seen as provocative and disrespectful as it portrays buying property as a game. Many residents have expressed their dissatisfaction with the advertising measure in several comments, especially in view of the tense housing situation on the island, where finding affordable housing is proving difficult, especially for socially disadvantaged groups and employees. More and more people in the region no longer even dream of buying a house, as salaries are often not enough to rent a suitable apartment themselves.

The advertising is in direct proximity to properties whose prices are in the millions. This discrepancy reinforces the feeling of invisibility and alienation among the locals. The region has fallen into crisis due to the ongoing real estate boom and the regional government's inaction on building affordable housing. This is also clear in a market study by Porta Mallorquina, which points to the ongoing housing shortage on the island.

Rising real estate prices

While outrage over the real estate company's advertising effectiveness grows, the market study shows that Mallorca is recording impressive record visitor numbers overall. The real estate market remains stable, prices for holiday properties rose to an average of around 5,800 euros per square meter in January 2024, which corresponds to a 1.7 percent increase compared to the previous year. In the luxury segment, prices have even increased by 13 percent, with top prices for properties with sea views increasing by up to 18.8 percent.

The most expensive region on the island is the southwest with prices per square meter of up to 7,700 euros, followed by Palma City at around 7,300 euros. A particularly worrying trend is the decline in properties available for sale, particularly in the luxury segment. Here, luxury properties made up 17 percent of the offering in 2020; today it is less than 4 percent. At the same time, prices for simple objects have fallen by 50 percent to just 9 percent.

Forecasts for the future

Property prices have risen by up to 78 percent since 2015, while the eurozone's inflation rate was just 23 percent over the same period. The market study by the Steinbeis Transfer Institute together with Porta Mallorquina points to continued value stability, with the average price for luxury properties exceeding 10,000 euros per square meter for the first time.

The positive developments in tourism, in which around 14.4 million visitors were counted in 2023 - an increase of 9.1 percent compared to the previous year - support expectations of new records and rising real estate prices in the coming years. Planned expansion projects in air traffic, including a new direct connection between Miami and Palma, are expected to further stimulate the market. Forecasts indicate that prices will continue to rise in the low single-digit percentage range.

In view of this situation, it is clear that the challenges on the real estate market in Mallorca and the associated social issues require intensive attention.